How to Pay a Conjunction Split Cleanly in Queensland: Solicitor, Wire or On-Chain

Settlement day arrives, the vendor’s solicitor has confirmed funds cleared, and the listing agent now owes their conjuncting colleague a share of the commission. That moment — the one where a handshake deal gets reduced to an actual dollar transfer — is where vague conjunction agreements become expensive problems. Getting how to pay a conjunction split in Queensland real estate right is about more than professional courtesy; it has compliance, tax and trust account dimensions that can expose both agencies if they’re handled carelessly.

This article covers every practical angle of conjunction payment: the legal framework that governs when a split is enforceable, how the traditional solicitor-directed route works within Queensland’s settlement architecture, why EFT/bank wire is the most common clean method between agencies, and what on-chain or digital asset payment looks like for agents operating in that space.

The Legal Foundation: Why the Agreement Matters Before the Payment Does

A real estate conjunction typically refers to a partnership between two real estate agents on behalf of their agencies to sell a property. Usually, Agency One is appointed by the sellers as the listing agent and lists the property for sale, and Agency Two supplies a buyer for the purchase. This arrangement is suitable where an agency other than the listing agency has access to a buyer that is suitable for the property. In this scenario, the commission payable is shared with a signed agreement in place.

That signed agreement is the entire foundation of the conjuncting agent’s right to payment. The District Court of Queensland case of Equity 2 Pty Ltd v Best Price Real Estate Pty Ltd [2020] QDC 180 highlights that a lack of understanding when it comes to contract terms could cost real estate agents their commission. The case involved a dispute arising from a conjunction agreement between two parties, in relation to an agent’s entitlement to commission on the sale of a parcel of land. The Court held that where a buyer who was not specified in the terms of the contract purchases the land, the entitlement to commission will not be recognised. The lesson is straightforward: if the conjunction agreement doesn’t clearly name or describe the buyer, or fails to specify the split percentage, timing, and payment mechanics, the conjuncting agent may have no enforceable claim regardless of how much work they did.

Regardless of whether you are the listing agent or the co-joined agent, make sure to get every agreement in writing — from the percentage of the commission you are entitled to, to the date by which your commission must be paid. If due to a misunderstanding a conjunction agreement leads to a court case, the court will only be liable to enforce what is written in this contract. Anything besides or beyond that scope is open to interpretation, so “implied” knowledge is not acceptable.

Before any payment method is even considered, the conjunction agreement must be executed — signed by both principals or their authorised representatives — and must specify the exact split percentage, whether amounts are GST-inclusive or exclusive, the triggering event (typically settlement, not exchange), and the payment timeframe. The agreement needs to state the exact percentage or dollar split of the commission (such as 50/50 or 60/40), when payment is earned and payable (usually on settlement, sometimes on exchange for leasing), whether amounts are inclusive or exclusive of GST, and usually the listing agent collects from the principal and remits the agreed share.

Under Queensland’s Property Occupations Act 2014 (POA), there is no cap on commission. Agents are able to negotiate any rate of commission with their clients, creating a more competitive marketplace. The split between conjunction parties is their own contractual matter — though it cannot result in the total commission exceeding what was agreed with the vendor on the Form 6 Appointment of Property Agent.

The Trust Account Rule: Where Queensland Commission Actually Lives Before Payment

Understanding how to pay conjunction split payments in Queensland real estate requires understanding where the money sits first. Queensland agents operate under strict trust accounting obligations under the Agents Financial Administration Act 2014 (Qld) alongside the POA.

An agent must not withdraw their commission and fees from the trust account until after they have made all other payments relevant to the performing of the service earning them commission or fees. They must also only withdraw money for an authorised purpose. For example, they must not pay trust money to their general account before finalising all other payments (pre-drawing). This rule — known as the prohibition on pre-drawing — is a critical constraint on conjunction payments. The listing agent cannot simply extract the full commission and then get around to paying the conjuncting agent later at leisure. The sequence matters.

Under section 88 of the Property Occupations Act 2014, a property agent must not claim commission worked out on an amount more than the actual sale price of the property, the actual rental for the property being let, or the actual amount of rent. This applies equally in a conjunction context: neither agent can claim a share calculated on a fictitious or inflated sale figure.

In practice, once settlement occurs and commission is released from the trust account, the listing agent holds the total commission amount. Their obligation to remit the conjuncting agent’s share then activates according to whatever the signed agreement specifies. Industry practice reflects this: payment of the negotiated fee is typically made to the conjuncting or referring agent within seven days of monies being received by the listing agent. Seven days is the conventional timeframe seen in REIQ-aligned conjunction agreements. There is no legislative prescription on the exact number of days for agent-to-agent remittance (as distinct from vendor-to-agent obligations), so whatever your signed agreement says is binding.

Trust accounting breaches are serious. A breach might be against the Agents Financial Administration Act 2014, including section 20 (trust money not available to licensee’s creditors), section 21 (when payments may be made from trust accounts), and section 22 (permitted drawings from trust accounts). Agents must ensure compliance with these provisions when structuring conjunction payment timing.

Method One: Payment Directed Through the Solicitor at Settlement

The cleanest conjunction split is one where the payment mechanics are built into the settlement itself — that is, where the vendor’s solicitor, or the parties’ respective solicitors, are instructed to disperse commission to both agencies directly at or immediately following settlement.

From 20 February 2023, it became compulsory for all Queensland conveyancing transactions to be settled online, via an electronic settlements platform like PEXA. Queensland joined New South Wales, South Australia, Victoria and Western Australia in making online settlements mandatory. In 2022, the Queensland Government issued the Land Title Regulation 2022 (Qld), which provides that certain transactions must take place via an Electronic Lodgement Network (ELN) from 20 February 2023, meaning that certain required instruments now need to be deposited or lodged electronically.

In a PEXA settlement, lawyers, conveyancers and financial institutions can prepare, sign, and lodge documents electronically, complete financial settlements and transfer ownership of property. Funds are electronically transferred between the buyer’s and seller’s financial institutions simultaneously with the electronic lodgement of documents. Once the financial settlement is complete, the title is electronically registered with Titles Queensland.

For agents seeking to have the conjunction split paid at settlement, the practical mechanism is to instruct the vendor’s solicitor — in writing, prior to settlement — that the total commission is to be disbursed in two tranches: one to the listing agency and one to the conjuncting agency. The solicitor will require a copy of the signed conjunction agreement and the conjuncting agency’s bank details, ABN, and tax invoice. The solicitor then creates two separate payment directions within the PEXA workspace.

This approach is administratively clean because it removes the intermediary step of the listing agent holding and then remitting the conjuncting agent’s share. It also removes any risk of the listing agent’s trust account becoming entangled, since the commission never passes through the listing agent’s hands at all — it flows directly from the settlement workspace to each agency. It does, however, require advance coordination and the explicit cooperation of the vendor’s solicitor. Not all solicitors will accommodate this without a specific instruction and adequate lead time before the settlement booking cut-off. In Queensland the PEXA rebooking cut-off time is 4pm (AEST). Documents and payment directions must be finalised before that window.

The solicitor-directed split is best suited to larger transactions, off-the-plan developments where multiple conjunction agents may have been used across a project, or wherever the listing and conjuncting agencies have any concern about payment certainty. It is also the preferred structure when one of the parties to the conjunction agreement is interstate, since it removes any question about when and how cross-border bank transfers occur relative to the settlement event.

Method Two: Direct Bank Wire Between Agencies Post-Settlement

The most common method for how to pay conjunction split amounts in Queensland real estate remains a direct bank-to-bank electronic funds transfer (EFT) from the listing agency’s trust account to the conjuncting agency after settlement.

This is operationally simpler than the solicitor-directed approach but creates a brief window of credit risk: the conjuncting agent is reliant on the listing agent’s goodwill and process discipline to transfer the funds within the timeframe specified in the conjunction agreement. Where the relationship is solid and the agencies are known to each other, this is typically fine. Where the conjunction was a first-time arrangement, or where there is any tension over buyer qualification or effective cause, that window can become contentious.

For the EFT method to work cleanly, several things must be in place before settlement day:

• A signed conjunction agreement specifying the split percentage, the trigger event, and the payment timeframe
• The conjuncting agency’s correct BSB and account number (confirmed in writing — do not rely on verbal instructions)
• A valid tax invoice from the conjuncting agency, inclusive of their ABN and the correct GST treatment
• Written authority from the listing agency principal for the trust disbursement

The listing agency draws the total commission from trust — after all other obligations have been met under the settlement — and then processes the conjuncting agency’s share as a business payment from their general account. This is the standard sequence: commission is withdrawn from trust into the listing agency’s general account, and the conjunction payment is then made from that account via standard EFT. The conjuncting agency is not a named client of the trust account; they are a creditor of the listing agency under the conjunction agreement.

The appointment and associated fee arrangements should spell out the commission rate, state whether GST is included or excluded, and clearly identify any tiers or thresholds in the calculation. For conjunction payments specifically, this means the tax invoice issued by the conjuncting agency must correctly reflect the GST treatment. Both agencies should be registered for GST if the commission split exceeds the registration threshold, and the 10% GST component must be clearly stated.

One practical issue that regularly arises: whose responsibility is it to check that the payment has landed? The listing agent’s principal should retain payment confirmation records. The conjuncting agent should confirm receipt in writing, typically by a simple email acknowledgement of the invoice being paid. If payment does not arrive within the timeframe specified in the conjunction agreement, the conjuncting agent’s recourse is first a formal written demand, and then — if not resolved — the Small Claims process or, for larger amounts, the District Court, as was the case in Best Price Real Estate above.

Method Three: On-Chain and Digital Asset Payment

A small but growing cohort of Queensland real estate professionals are parties to conjunction agreements where one or both agencies operate partly in digital assets — typically stablecoins such as USDC or USDT — and prefer or require an on-chain payment pathway.

The legal position in Australia is clear: a conjunction payment is a commercial obligation between two licensed businesses. The ATO treats cryptocurrency received as business income as assessable income at the Australian dollar value at the time of receipt. A conjunction split paid in cryptocurrency is no different from any other commission payment from an income tax perspective. The conjuncting agency must record the AUD fair market value on the date the digital assets are received, issue an appropriate tax invoice (denominated in AUD), and account for GST in the ordinary way. Neither the payment method nor the nature of the asset changes those obligations.

Operationally, on-chain conjunction payments face one structural challenge that does not arise with conventional EFT: the payment typically needs to move from the listing agency’s operational wallet to the conjuncting agency’s wallet as a single, irreversible transaction. There is no reversal mechanism if the wrong wallet address is used, which makes address verification critical. Best practice is to confirm the recipient wallet address through at least two independent channels before initiating any on-chain transfer.

Where multiple parties need to receive commission simultaneously — for example, in a project development context with several conjuncting agents across different lots — on-chain payment routing tools can facilitate simultaneous multi-wallet disbursement at the moment of transfer. This addresses a practical pain point in conventional EFT (sequential payments, separate reference numbers, multiple trust account records) by allowing the split to be executed in a single on-chain action.

It bears emphasis: on-chain payment tools operate at the payment layer only. They do not replace or alter the conjunction agreement, the trust accounting obligations, the GST invoicing requirements, or the Form 6 structure that governs how commission is earned and held in the first place. The legal settlement of the property transaction itself occurs through PEXA in the ordinary way; any on-chain conjunction payment is a separate commercial transaction between the two agencies after commission has been released from trust.

GST, ABNs and the Tax Invoice Sequence

Every conjunction payment is a taxable supply for GST purposes, assuming both agencies are registered (or required to be registered) for GST. The conjunction agreement should specify whether the agreed split is GST-inclusive or GST-exclusive. This is not merely an accounting preference — it determines the actual dollar amount each party receives.

The conjuncting agency’s obligation is to issue a valid tax invoice before or at the time of payment. A valid tax invoice must include: the conjuncting agency’s ABN, the listing agency’s identity as the recipient, a description of the supply (the conjunction services rendered in relation to the specified property), the date, the amount, and the GST component separately stated. Without a valid tax invoice, the listing agency cannot claim an input tax credit on the GST paid.

Queensland agents must be formally appointed in writing before they are entitled to sell or charge commission. This is done using the prescribed Appointment of Property Agent (Form 6) under the Property Occupations Act 2014 (Qld). The Form 6 governs the relationship between the listing agent and the vendor. The conjunction agreement governs the relationship between the two agents. Both documents must be present and valid for the entire commission payment structure to hold.

Agents who are uncertain about GST treatment in multi-agency conjunction scenarios — particularly where one party is operating through a company and the other through a sole trader structure — should take specific advice from their accountant. The stakes of getting this wrong are real: an incorrectly structured conjunction payment can result in one or both agencies having GST liability that was not anticipated, or losing input tax credit claims.

What Happens When Payment Is Disputed

Commission disputes between conjunction parties are not uncommon, and they have a litigation history in Queensland. The triggers are predictable: ambiguity about which buyer was introduced by whom, unclear effective cause wording, a sale falling through after conditional contract and then re-listing with a different buyer, or a listing agent that delays payment or contests the split calculation.

In the Best Price Real Estate case, the agreement was clear: the property was to be sold to a particular buyer by a certain date. When the property was sold to a different buyer, this was under a separate contract. Therefore, the respondent was not entitled to a percentage of the commission under the conjunction agreement. The Court determined that in the event there was ambiguity surrounding the prospective purchaser, the conjunction agreement may have been recognised before the Court.

The takeaway for agents structuring conjunction agreements is to draft effective cause wording that clearly addresses what happens if the property is sold to a different buyer after the conjunction agreement expires, or to a related entity of an introduced buyer. Effective cause wording should prevent double claims by tying payment to being the effective cause of the sale or lease. The process for recording buyer introductions — such as an email log — and any protection period if the introduced party later transacts should also be specified.

When payment is genuinely overdue, the conjuncting agent has a contractual right of action. The POA also provides regulatory pathways — a complaint to the Commissioner for Fair Trading under the Property Occupations Act 2014 is available where an agent has acted in breach of their obligations. This avenue is distinct from a civil claim for the debt, but the two can run in parallel. Penalties for trust accounting and commission-related breaches can include fines of up to $26,690 or one year imprisonment, which gives the regulatory pathway real deterrent weight where an agent is wilfully withholding a legitimately owed split.

What This Means for Queensland Agents

The payment step in a conjunction deal is the moment that crystallises everything that came before it. All the vagueness in the original agreement, all the missing clauses, all the ambiguity about buyer identification — it surfaces at payment time.

For listing agents paying a conjunction split, the practical obligations are:

• Ensure the conjunction agreement is signed, specific and pre-dates the introduction of the buyer
• Hold commission in trust correctly until settlement is confirmed
• Request a valid tax invoice from the conjuncting agency before disbursing
• Pay within the timeframe stated in the agreement — do not pre-draw, do not delay
• Retain payment records and confirmation

For conjuncting agents receiving a split, the obligations are:

• Issue a correctly structured tax invoice (ABN, GST, property reference, date)
• Confirm bank or wallet details in writing before the settlement date
• Follow up in writing if payment is not received by the agreed deadline
• Keep a record of the buyer introduction — dated email or written introduction log — as evidence of effective cause if disputed

Whether the payment moves through a solicitor-directed PEXA workspace disbursement, a post-settlement EFT from the listing agency’s general account, or an on-chain transfer between wallets, the documentary and compliance obligations remain identical. Queensland led the country in 2024 with 198,019 property settlements — a substantial volume of transactions against which the principles here apply daily. Getting conjunction payments right is not a niche concern; it is standard professional practice.