Queensland Property Occupations Act 2014: The Complete Agent’s Reference

You’re sitting across from a potential client. They want to know what you’re charging, how long you’ll hold the appointment, and whether you can buy the property yourself if you find it interesting. You need answers that are legally correct, not just commercially comfortable. The Property Occupations Act 2014 (Qld) was enacted to regulate the activities, licensing and conduct of property agents and resident letting agents and their employees, and to protect consumers against particular undesirable practices. It governs every decision you make from the moment you open an agency to the moment you bank your commission.

On 1 December 2014, Queensland’s Property Agents and Motor Dealers Act (PAMDA) was replaced by four legislative instruments, of which the Property Occupations Act 2014 (POA) is of particular note to real estate agents. The full text of the Act is available at legislation.qld.gov.au and should be bookmarked on every agent’s device.

The Licensing Framework Under the Property Occupations Act 2014

Licence Categories and What They Authorise

The Act creates a cleaner licensing structure than its predecessor. The licence of Real Estate Agent covers those who previously held PAMDA licence categories of Real estate agent (Principal, Employed or Corporation), Pastoral house (Director, Corporation or Manager), and Real estate agent and Commercial agent. For practising agents, this consolidation removed significant complexity.

The key licence categories operating under the Act are: real estate agent licence, auctioneer licence, resident letting agent licence, and limited property agent licence. Each carries different authorities and obligations. A real estate agent licence authorises the full range of property services — selling, letting, and property management — while the auctioneer licence is specific to conducting auctions. The resident letting agent licence is restricted to operators running on-site letting arrangements, typically in apartment complexes and holiday accommodation. A limited property agent licence applies to narrowly scoped activities prescribed under the Act and Regulation.

The Act establishes the need for agents to hold a valid licence to operate and outlines the qualifications and training necessary for obtaining a licence. The specific qualifications are stated on the department’s website and are periodically updated by the chief executive.

Suitability Requirements

Suitability is not a tick-box. The Act contains provisions for investigations about the suitability of applicants and licensees. For individual applicants, suitability is assessed against criteria including fitness, propriety, financial circumstances, and criminal history. For corporations, suitability is assessed for applicants and licensees as corporations, meaning every director and officer of a corporate licensee is effectively under the same scrutiny.

Licensees are also required to give notice of any change in criminal history. This is an ongoing obligation, not just a one-time requirement at application. If a licensee receives a conviction after they are licensed, they must notify the chief executive. Failure to do so is itself an offence — a detail that catches agents off guard who assume disclosure ends at the point of application.

Licensees are also required to notify the chief executive of changes in circumstances. This extends beyond criminal history to other material changes — insolvency, changes to business structure, or loss of a key person in a corporate licence.

CPD Obligations

Licensees must complete continuing professional development (CPD) requirements as determined by the chief executive. The chief executive approves and publishes CPD requirements. Compliance with CPD is a licence condition, not a suggestion. Failing to meet your annual CPD obligations risks licence suspension or cancellation. Licensees are required to maintain a record of completed CPD requirements, so keep a file with certificates and completion evidence accessible at all times.

Exemptions from Licensing

Not everyone in property transactions requires a licence under the Act. Owners of large-scale non-residential property such as shopping centres, and organisations that only manage property they own such as parent or subsidiary companies, are exempt from licence requirements. Under the POA, property developers and their employees no longer need to be licensed. This was a significant change from PAMDA, and it is worth understanding when dealing with developer-vendor transactions where the person instructing you may not hold a licence themselves.

Appointment of Agents: The Foundation of Every Engagement

No appointment, no commission. This is perhaps the most operationally critical rule in the Act, and it catches more agents than any other provision.

Written Appointment Requirements

The Act requires that a property agent’s appointment to act be in writing and comply with prescribed form requirements. The Form 6 (Appointment of Real Estate Agent) is the central document. It must be signed by the client before an agent commences marketing or otherwise acting on the appointment. An agent who begins work — opens a price negotiation, posts on a portal, speaks to a buyer — without a validly executed appointment has no entitlement to commission if the sale completes.

The appointment must specify: the property; the term; the type of appointment (sole agency, exclusive agency, or general agency); the commission or remuneration agreed; and any expenses that may be charged. Each of these elements is not merely administrative — a defect in any one of them can make the commission claim unenforceable.

Sole, Exclusive, and General Appointments

The Act draws a meaningful distinction between appointment types, and agents need to communicate these differences clearly to clients rather than treating them as interchangeable. The limit on lengths of appointments for a sole or exclusive agency was extended from 60 to 90 days when the POA replaced PAMDA. A sole agency means only that agent is appointed, but the vendor retains the right to sell privately without commission liability. An exclusive agency removes that right — the agent is owed commission regardless of who introduces the buyer. A general agency allows multiple agents to be appointed simultaneously.

Agents must understand these distinctions precisely because clients often believe they have agreed to one type when they have actually signed another. A principal should have their sales team trained to explain the difference plainly at the listing appointment stage.

Responsibility for Salesperson Conduct

The Act establishes the responsibility of licensees for acts and omissions of salespersons. This is a provision with sharp consequences. A principal licensee bears legal responsibility for the actions of every salesperson employed in their business, including conduct that the principal did not authorise or know about. If a salesperson misleads a buyer, the principal licensee’s licence is exposed — not just the salesperson’s registration. This creates a direct incentive for principals to invest in training, supervision, and compliance culture.

Commission: What You Can Charge and When You Can Claim It

Deregulation of the Commission Rate

One of the most commercially significant changes the POA introduced was the removal of the regulated commission cap. The POA removed the cap on commission, allowing agents to negotiate any rate of commission with their clients, creating a more competitive marketplace. Prior to December 2014, commission rates in Queensland were subject to prescribed maximums under PAMDA. Today, the rate is a matter for commercial negotiation between the agent and the client.

This deregulation has both positive and negative consequences for agents. On the positive side, it allows premium fee structures for premium services. On the negative side, it has driven significant fee compression in competitive markets. Whatever rate is agreed, it must be specified in the appointment.

Commission Can Only Be Claimed for Actual Amounts

Freedom to negotiate does not mean freedom to over-claim. The Act provides that commission may be claimed only for actual amounts. An agent cannot invoice a client for more than the amount calculated by applying the agreed commission rate to the actual sale price. Any attempt to inflate the calculation — even marginally — crosses into territory that risks disciplinary action.

Excess commission must be repaid. If an agent has already been paid and it subsequently emerges they received more than the correct amount, they are obligated to refund the difference. This is not merely a civil remedy the client can pursue — it is a legislative obligation on the agent.

Commission Disclosure to Buyers

Under PAMDA, agents were required to disclose to buyers the commission being received from the seller. The POA removed commission disclosure requirements to buyers — agents are no longer required to disclose to the buyer how much commission they receive from the seller. However, agents should be aware that general fair trading obligations and the Australian Consumer Law (which operates concurrently with state property legislation) still require honest and non-misleading conduct in all commercial dealings.

Trust Accounts: Managing Client Money Under the Property Occupations Act 2014

The Obligation to Maintain a Trust Account

Trust account obligations are among the most heavily regulated aspects of the Act, and the most severely penalised when breached. A principal licensee must keep a trust account under the Administration Act if an amount is likely to be received by the licensee for a transaction, or with written direction for its use, when performing the activities of a property agent or resident letting agent. The penalty for non-compliance is significant: a maximum penalty of 200 penalty units or 2 years imprisonment.

For trust account purposes, “amount” likely to be received includes deposit and purchase monies for a transaction, but does not include an amount payable to the licensee as a refund of an expense the licensee was authorised to incur and did incur and for which the licensee holds a receipt. This distinction matters: authorised expense reimbursements can flow directly to the agent, while all other client-directed monies must pass through the trust account.

Trust Account Obligations in Practice

Agents are required to maintain trust accounts for handling client funds, and the Act sets out the rules for managing and auditing these accounts. In practical terms, this means:

• Every trust account must be held at an approved financial institution.
• Funds cannot be disbursed without authority (typically settlement, or a written instruction from the principal).
• Records must be maintained in a manner consistent with the Agents Financial Administration Act 2014 (AFAA), which operates alongside the POA.
• Annual audits are mandatory.

The Act specifies the need for regular audits of trust accounts and establishes the qualifications for auditors and the frequency of audits. Trust account audits must be conducted by a registered company auditor and filed within three months of the end of the financial year.

Principals who delegate day-to-day trust account management to office staff must ensure that delegation is clearly documented, that the staff member is appropriately supervised, and that the principal regularly reviews trust account reconciliations. Deficiencies in trust account management have cost Queensland agents their licences, their practices, and in serious cases, their liberty.

Prohibited Conduct and General Obligations

What the Act Prohibits

The prohibited conduct provisions of the POA address behaviour that undermines consumer confidence in the profession. Acting as a property agent without a licence is an offence. Using a misleading representation about a property is an offence. Accepting a secret commission — payment from a third party (such as a referral fee) without the client’s knowledge — is prohibited.

The Act and Regulation require a property agent to act in accordance with their client’s instructions. This principle underpins the entire agency relationship. Acting outside your instructions — accepting an offer below the client’s stated minimum without authorisation, or agreeing to auction terms the vendor has not approved — is a breach of both the Act and your agency agreement.

The Regulation also addresses conflict of duty or interest. A common scenario: an agent manages a rental property for a landlord, and a prospective buyer asks that same agent to assist them in purchasing the property. The agent now has conflicting duties to two separate principals. The Act and Regulation require transparent disclosure and, in many cases, written informed consent from both parties before proceeding.

Prior Appointment of Another Agent

The Regulation addresses the situation of a prior appointment of another agent. An agent who knows — or reasonably suspects — that a client already has an active appointment with another agent must take steps to clarify the situation before proceeding. Inducing a client to abandon a valid appointment and enter into a new one with you instead is conduct the Act and professional standards treat seriously.

Beneficial Interest: The Rules When an Agent Wants to Buy

What Beneficial Interest Means Under the Act

Beneficial interest is a defined term under the POA with significant consequences when it arises. Section 153 of the POA defines what a beneficial interest is — for example, the purchase of the property is made for the agent or an associate, or the agent or an associate has an option to purchase the property.

The Act separately addresses beneficial interest arising through options, and beneficial interest arising through means other than options. The distinction matters because each carries slightly different obligations. In both cases, the core requirement is disclosure to and consent from the client before the agent acquires any such interest.

The Form 7 Requirement

Agents may charge commission on beneficial interest sales, where they sell to close family, friends or business associates. Commission may be charged where a client signs a Form 7, confirming their consent and understanding, and that the agent will act fairly and honestly when conducting the sale.

Form 7 (Disclosure by Licensee or Salesperson — Sale of Residential Property) is the prescribed disclosure instrument. It must be executed before the agent takes any step to acquire the interest or facilitate the acquisition. Backdating this form or obtaining signature after the fact is not merely a technical breach — it is the kind of conduct that attracts disciplinary proceedings.

A property agent commits an offence if the agent obtains from the client an option to purchase the property in which the agent has a beneficial interest without complying with the prescribed requirements. The maximum penalty for this offence is 200 penalty units.

One practical note: the definition of “associate” under the Act is broad. It extends beyond immediate family to business partners and related entities. Agents who are considering facilitating a purchase for a company they have an interest in — or for a family member — should treat the beneficial interest provisions as applying and take formal advice before proceeding.

Auction Provisions

Conducting Residential Property Auctions

The Act contains dedicated provisions for auctions, and the Regulation supplements them with detailed conduct requirements. The Regulation includes requirements for the registration of bidders and related obligations for auction. In Queensland, bidder registration at residential property auctions is mandatory. Every person who intends to bid must be registered before bidding commences. The registration process requires the auctioneer to verify the identity of each bidder and maintain a record — the auction contract book — for the prescribed period.

The Regulation specifically addresses bids by the seller. A seller may bid on their own property in Queensland, but only if this has been disclosed to all registered bidders before the auction commences. Agents are allowed to disclose the fact that a reserve price has been set for a property going to auction, but not the reserve price itself. An auctioneer who discloses the actual reserve price is in breach of the Act.

Disclosure Obligations and the Auctioneer’s Name

The requirement to display a licence in a place of business has been removed under the POA, but a licence must still be produced if requested. Auctioneers do not need to display their licence at auction, however they must either display or announce their name. The Regulation prescribes the requirement for display and announcement of the auctioneer’s name. This is a pre-auction obligation — it must occur before bidding opens, not at the conclusion of the auction.

Post-Auction Contract Formation

A contract formed after auction is treated as a relevant contract (and therefore subject to the 5-business-day cooling-off period) if it is entered into with a registered bidder by no later than 5pm on the second business day after a property is passed at auction. Contracts formed at the fall of the hammer — when the property is sold under the hammer — are expressly excluded from the cooling-off provisions under Part 7 of the Act. Agents conducting auctions must understand this distinction precisely: the buyer who purchases under the hammer has no cooling-off right. The buyer who negotiates a price two days after the auction does.

Residential Property Sales: Part 7 of the Act

The Cooling-Off Period

Part 7 of the Act contains provisions relating to the cooling-off period for relevant contracts. A relevant contract is generally a contract for the sale of residential property, subject to specific exclusions. The cooling-off period is 5 business days, running from the later of when the buyer receives the contract or when the contract is formed.

Relevant contracts must now include the following conspicuously written words or words to like effect: “The contract may be subject to a 5 business day statutory cooling-off period. A termination penalty of 0.25% of the purchase price applies if the buyer terminates the contract during the statutory cooling-off period.” This prescribed text replaced the old PAMD Form 30c and BCCM Form 14 requirements. If the prescribed words are not included in the contract, the contract is defective — not void, but defective in a way that can affect the parties’ rights.

The Act also contains provisions for waiving or shortening the cooling-off period. This requires a certificate from a solicitor or licensed conveyancer. An agent cannot advise the buyer to waive the cooling-off period, and should not indicate to a buyer whether or not they should do so.

Contracts That Are Not Relevant Contracts

Several categories of contract are excluded from the relevant contract (and therefore cooling-off) provisions under Part 7. These include:

• Contracts formed at auction (property sold under the hammer).
• Contracts where the buyer is a publicly listed corporation or subsidiary.
• Contracts where the buyer is the State or a statutory body.
• Contracts where the buyer is purchasing at least 3 lots at the same time, whether or not in the one contract.

Understanding which contracts attract the cooling-off regime — and which do not — is essential knowledge for any Queensland residential agent.

What This Means for Queensland Agents

The Property Occupations Act 2014 is not background noise. It is the direct operating environment within which every Queensland real estate agent practises. The sections above are not exhaustive — the Act runs to hundreds of sections across multiple parts — but they cover the provisions that most directly affect day-to-day practice.

A few practical operating principles follow directly from the Act:

No action without appointment. Never take a step in furtherance of a listing — not a photograph, not a conversation with a buyer — until you hold a signed Form 6. Your commission entitlement exists only from the moment the appointment is validly in place.

Trust account discipline is non-negotiable. The maximum penalty for failing to maintain a required trust account is 200 penalty units or 2 years imprisonment. No shortcut in trust account management is worth that exposure. Reconcile regularly, audit annually, and never allow a deposit to sit outside the trust account.

Beneficial interest requires advance disclosure. If there is any possibility that you, a family member, or a business associate may end up purchasing or taking an option over a property you are listing, the Form 7 must be executed before any such step is taken. Retroactive disclosure does not satisfy the Act.

Principals carry their salespersons. The responsibility provisions mean that the principal licensee’s licence is on the line every time a salesperson acts in their name. Compliance systems, ongoing training, and supervision are licence-preservation measures, not optional extras.

Finally, the Act continues to evolve. The current version of the POA (as at 1 August 2025 per the Office of the Queensland Parliamentary Counsel) reflects amendments made since commencement. Agents should verify they are working from the current version at legislation.qld.gov.au and should monitor REIQ communications for guidance on any regulatory changes affecting practice.