Anyone can call themselves a property adviser, and most of them do
A searches, negotiates, and bids on your behalf, and in every state they need a real estate licence to do it. But the person telling you which property is a good investment, where to buy, and why needs no licence at all. Real property is not a "financial product" under the Corporations Act, so the investment-advice layer of this industry has no regulator, no education standard, and no best-interest duty .
- REBAA warns that some buyer's agents qualify through courses shorter than those required for baristas .
- PICA flagged a 2025 "concerning resurgence of speculative marketing, conflicted conduct, and unlicensed financial advice" in the property investment space .
- The Park Trent director was banned from financial services for 4 years only because the firm strayed into SMSF advice .
If Park Trent had told those 860 people to buy investment properties with their own savings, ASIC would have had no jurisdiction at all . That is the gap you are walking into when you hire anyone advertising property advice.
How a buyer's agent earns changes what they recommend
A buyer's agent (also called a buyer's advocate) is the opposite of the selling agent. The selling agent is legally obliged to get the best price for the vendor. The buyer's agent works exclusively for you, searches properties that match your brief, assesses market value, negotiates, and bids at auction if needed. A good one brings local market knowledge built from seeing hundreds of properties, access to off-market listings, and negotiation experience against selling agents who transact every day.
There are three common fee structures :
Fee Type | How It Works | Typical Range | Incentive Alignment |
|---|---|---|---|
Fixed fee | Set amount agreed upfront, regardless of purchase price | $8,000 to $20,000+ | Strong. Agent earns the same whether you pay more or less. |
Percentage of purchase price | Calculated on the final sale price | 1.5% to 3% | Weak. Agent earns more if you pay a higher price. |
Tiered/hybrid | Engagement fee upfront plus a success fee at settlement | $1,000 to $6,000 upfront + percentage or flat balance | Varies depending on structure. |
Most agents charge an upfront engagement fee of $1,000 to $6,000 to commence the search, with the balance payable on successful purchase . If no purchase is made, the engagement fee covers the work done to that point.
The regulation gap lets anyone call themselves a property strategist
If someone advises you to buy shares, they need an under the Corporations Act 2001. They must meet education standards, act in your best interest, and disclose conflicts. ASIC can investigate them and ban them from the industry .
If someone advises you to buy a $900,000 investment property, none of that applies. No AFSL required, no best-interest duty, no ASIC oversight on the advice itself .
Activity | Regulated? | Regulator | Licence Required |
|---|---|---|---|
Advising someone to buy shares | Yes | ASIC | AFSL |
Advising someone to set up an SMSF | Yes | ASIC | AFSL |
Advising someone to buy an investment property | No | None | None |
Acting as a buyer's agent (searching, negotiating) | Yes | State fair trading / consumer affairs | Real estate licence |
Advising someone to buy property through an SMSF | Yes | ASIC | AFSL |
A buyer's agent needs a real estate licence to transact on your behalf. But a "property investment adviser" or "property strategist" who tells you what to buy, where to buy, and why does not need any licence at all . The 2014 ASIC action against Sydney-based Park Trent only succeeded because Park Trent crossed into SMSF advice, which is regulated . Strip out the SMSF component and ASIC had no lever to pull.
REBAA membership is the minimum bar, not a guarantee
The Real Estate Buyers Agents Association of Australia (REBAA) is the only national industry body specifically for buyer's agents. Established in 2000, it sets membership standards above the legal minimum. To become REBAA-accredited, an agent must :
- Hold the correct real estate licence in every state they buy in
- Carry professional indemnity insurance of at least $2,000,000
- Have a minimum of 2 years' experience as a buyer's agent
- Operate exclusively as a buyer's agency (not also selling properties)
- Agree to REBAA's code of conduct, which requires acting in the client's best interest and avoiding conflicts of interest
Membership is voluntary. A non-member can still lawfully operate. But the absence of any industry body membership, combined with no verifiable track record, should make you cautious. REBAA's entry requirements filter out the operators who set up last month after a short online course .
The red flags of an unqualified operator
REBAA and PICA have both flagged a surge in underqualified operators . Six red flags worth walking away from:
- They also sell property. A buyer's agent who lists properties for sale has a direct conflict of interest. They may steer you toward properties they are also selling, earning fees from both sides. REBAA requires members to operate exclusively as a buyer's agency .
- They receive kickbacks from developers. Some operators call themselves buyer's agents but earn commissions from developers for directing clients toward specific new builds or off-the-plan apartments . If you are not the only one paying them, their advice is not independent.
- They push urgency. "This opportunity won't last" and "you need to act now" are sales tactics, not advice. A legitimate buyer's agent will give you time to complete due diligence .
- They offer "free" services. If you are not paying the buyer's agent, someone else is. Free property investment seminars are typically lead-generation tools for developers or property spruikers who pay the "adviser" a referral fee .
- They qualified last week. REBAA has warned that some agents can get licensed in just a few days, without specialised buyer's agent training . Ask how long they have operated as a buyer's agent specifically, not how long they have held a real estate licence.
- They offer a "one-stop-shop." Be wary of any firm that offers to find the property, arrange the mortgage, handle the conveyancing, and manage the tenancy. Each additional service is another commission. Each commission is another conflict .
A legitimate buyer's agent holds the correct state licence, carries professional indemnity insurance, charges you directly (not the developer, not the selling agent), discloses their full fee structure in writing, provides a written buyer's agency agreement, operates exclusively as a buyer's agent, and is willing to tell you when a property is not worth buying.