Real estate agent licensing and compliance in Victoria
Estate agents in Victoria must hold a licence under the Estate Agents Act 1980 and comply with conduct, trust accounting, and consumer protection obligations enforced by Consumer Affairs Victoria and the Business Licensing Authority. Breaches can result in fines, licence cancellation, or criminal prosecution. This guide covers 10 core obligations.
Coverage
Licensed estate agents, agents' representatives, corporation licensees, and their employees who perform estate agency work in Victoria, including residential and commercial sales, property management, and owners corporation management.
Legal basis
Estate Agents Act 1980 (Vic), Estate Agents (Professional Conduct) Regulations 2018 (Vic), Sale of Land Act 1962 (Vic), and the Australian Consumer Law (Vic). Consumer Affairs Victoria and the Business Licensing Authority administer the regime.
The obligations
Hold a current estate agent licence
Do not carry on business as an estate agent unless you hold a current licence issued by the Business Licensing Authority. Agents' representatives must also be authorised by a licensed agent.
Maintain and operate trust accounts correctly
Deposit all money received on behalf of clients into an authorised trust account. Reconcile monthly, keep proper records, and ensure trust money is not used for personal or business purposes.
Enter into written engagement authorities
Before acting for a vendor, landlord, or other principal, enter into a written authority that specifies the agent's commission, estimated selling price (for sales), and the terms of the engagement.
Disclose rebates, commissions, and conflicts
Disclose to the principal any rebates, discounts, commissions, or other benefits the agent receives from third parties in connection with the transaction. Disclose any conflict of interest before or at the time of entering the authority.
Comply with underquoting and pricing laws
The estimated selling price in marketing materials must reflect the agent's genuine estimate. Do not quote a price below the agent's estimated selling price or the vendor's reserve. Maintain a pricing evidence document.
Meet continuing professional development requirements
Complete the prescribed CPD hours each year, covering mandatory topics such as ethics, trust accounting, and legislative compliance as required by the Business Licensing Authority.
Submit to annual trust account audits
Arrange for an annual audit of all trust accounts by an approved auditor and lodge the audit report with the Business Licensing Authority within the prescribed period.
Comply with auction and bidding rules
Follow the Sale of Land Act requirements for conducting auctions: register bidders, enforce vendor bid rules (maximum one vendor bid), prohibit dummy bidding, and display auction rules at the property.
Provide vendor and purchaser statements
Ensure the vendor's statement (section 32 statement) is provided to the purchaser before any contract of sale is signed. Verify the statement is complete and accurate before the transaction proceeds.
Act in the best interests of the principal
Act honestly and in the best interests of the principal at all times, exercise due care and skill, and not engage in conduct that is unconscionable or misleading.
What happens if you do not comply
Fines up to approximately $39,000 for individuals and $199,000 for bodies corporate per offence (indexed). Trust account misuse carries criminal penalties including imprisonment. The Business Licensing Authority can suspend or cancel a licence, and VCAT can hear disciplinary proceedings.
Reporting requirements
Annual trust account audit report lodged with the Business Licensing Authority. Notification of changes to business details, principal place of business, and agents' representatives. Contributions to the Victorian Property Fund from trust account interest.
What firms should do today
- Reconcile trust accounts monthly and address discrepancies before the audit deadline
- Use engagement authority templates that comply with the Estate Agents Act and Sale of Land Act
- Maintain a pricing evidence file for every property listed for sale
- Train agents' representatives on underquoting rules and auction conduct
- Keep a register of all third-party benefits and commissions for disclosure purposes
- Review section 32 vendor statements for completeness before listing
Compliance with Quillio
Quillio helps Victorian estate agencies by tracking licence and CPD obligations, drafting compliant engagement authorities, and monitoring Consumer Affairs Victoria regulatory updates. See /resources/security or start a free trial.
This guide is general information about Victorian 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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