Real estate agent licensing and compliance in New South Wales
Real estate agents in New South Wales must hold a licence under the Property and Stock Agents Act 2002 and comply with detailed conduct, trust accounting, and disclosure obligations enforced by NSW Fair Trading. Breaches can result in fines, licence suspension, or disqualification. This guide covers 10 core obligations.
Coverage
Licensed real estate agents, assistant agents (formerly called "certificate holders"), corporation licensees, and their employees who perform real estate agency work in NSW, including property sales, property management, and strata management.
Legal basis
Property and Stock Agents Act 2002 (NSW), Property and Stock Agents Regulation 2022 (NSW), and the Property and Stock Agents (Trust Account) Rules. NSW Fair Trading is the regulator.
The obligations
Hold a current real estate agent licence
Do not carry on business as a real estate agent unless you hold a current Class 1 or Class 2 licence issued by NSW Fair Trading. Corporation licensees must have a licensed person in charge of the business.
Maintain and operate a trust account
Deposit all money received on behalf of clients into an authorised trust account within the prescribed timeframe. Keep trust account records in accordance with the Trust Account Rules and reconcile monthly.
Enter into written agency agreements
Before performing services for a principal, enter into a written agency agreement that includes the agent's commission or fees, the term of the agreement, and any additional charges. Provide a copy to the principal.
Disclose material facts and conflicts of interest
Disclose to the principal any material facts relating to the transaction and any conflict of interest, including beneficial interests in the property or rebates and commissions received from third parties.
Comply with underquoting prohibitions
Do not underquote the estimated selling price of a property. Marketing materials, price guides, and verbal representations must reflect the agent's genuine estimated selling price or the seller's reserve (whichever is lower).
Meet continuing professional development requirements
Complete the prescribed hours of continuing professional development (CPD) in each CPD period, covering topics specified by NSW Fair Trading including ethics, trust accounting, and legislative updates.
Submit to annual trust account audits
Arrange for an annual audit of trust accounts by a qualified auditor. Lodge the audit report with NSW Fair Trading within the prescribed timeframe.
Display licence details and maintain records
Display the licence number in all advertising and correspondence. Keep transaction records, trust account records, and agency agreements for at least 3 years after the transaction is completed.
Supervise assistant agents and employees
Licensed agents must adequately supervise assistant agents and employees performing agency work, including ensuring they do not exceed the scope of their authority or perform functions reserved for licensees.
Comply with auction conduct rules
When conducting auctions, comply with the bidder registration requirements, vendor bidding rules, and cooling-off exclusions. Dummy bidding is prohibited and penalties apply to both the agent and the bidder.
What happens if you do not comply
Maximum penalties of up to $110,000 for individuals and $220,000 for corporations per offence. Trust account breaches can result in licence disqualification. NSW Fair Trading can issue penalty notices, disciplinary orders, and prosecute offences in the Local Court or NCAT.
Reporting requirements
Annual trust account audit lodged with NSW Fair Trading. Notification of changes to business details, persons of close association, and key personnel. Complaints and disciplinary matters handled by NSW Fair Trading or NCAT.
What firms should do today
- Verify all staff hold current licences or certificates before they commence work
- Reconcile trust accounts monthly and address discrepancies immediately
- Use agency agreement templates that comply with the Regulation and include all mandatory terms
- Implement a process for documenting estimated selling prices and price guide rationale
- Schedule CPD well before the deadline and keep certificates of completion
- Brief staff annually on underquoting rules and auction conduct requirements
Compliance with Quillio
Quillio helps real estate agencies by tracking licence renewals and CPD deadlines, drafting compliant agency agreements, and monitoring NSW Fair Trading regulatory updates. See /resources/security or start a free trial.
This guide is general information about NSW real estate agent licensing obligations — not legal advice. Always consult a qualified property lawyer or compliance specialist for your agency's specific situation.
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