What Is a Conjunction Agreement in Queensland Real Estate?

You have a vendor’s listing, an exclusive agency, and a ticking clock — but the right buyer is sitting in another agent’s database across town. Or you have a highly qualified buyer with very specific requirements, and the property they need is locked inside someone else’s listing. Either way, the deal can only happen if two agencies cooperate. That is the moment a conjunction agreement becomes essential.

Understanding what a conjunction agreement is, how it operates under Queensland law, and where it can unravel is knowledge every Queensland agent needs — from the first year of registration through to running a multi-agent office.

What a Conjunction Agreement Actually Is

A real estate conjunction typically refers to a partnership between two real estate agents on behalf of their agencies to sell a property. Agency one is appointed by the sellers as the listing agent and lists the property for sale. Agency two supplies a buyer for the purchase.

A Conjunction Agreement is the written contract between two agents or businesses who agree to work together on a specific listing or opportunity and share the commission or fee if it settles. It governs the relationship between the two agencies — who does what, under what authority, and how the money flows. The Conjunction Agreement records how the commission will be split between those agencies and the conditions for payment. Because it governs how agents act for, or alongside, a principal, it sits alongside the law of agency.

The agreement is struck between the two agencies — not between either agency and the vendor. The vendor’s relationship remains with the listing agent under the original appointment. The agreement is drawn up between two parties: the Listing Agent and the Co-Joined Agent. The commission earned from the sale can be divided between both agents. That commission split is fully negotiable and must be expressly documented — nothing is implied.

The Legislative Framework in Queensland

In Queensland, real estate agents operate under the Property Occupations Act 2014 (Qld) (the POA). Section 102(6) of the POA provides that the standard appointment requirements do not apply to a sale of property by a real estate agent who acts in conjunction with a real estate agent appointed under that section to sell the property. This is the legislative recognition that gives conjunction arrangements their legal footing: the conjuncting agent is not required to hold their own separate appointment from the vendor in the way a listing agent is.

The POA’s Schedule 2 definitions make explicit reference to a property agent who acts, for a sale of property, in conjunction with a property agent appointed for section 102 to sell the property. So the concept of conjunction is not some informal industry custom — it is a recognised category within the governing legislation.

What the Act does not do is remove all compliance obligations from the conjuncting agent. No matter what kind of agreement is entered into — conjunction, referral, or otherwise — sales agents must ensure it continues to meet its disclosure obligations in accordance with the Property Occupations Act. Both agencies must hold current licences. Both must conduct themselves in accordance with the Act. The conjunction arrangement cannot be used to funnel activity through an unlicensed person.

The REIQ’s forms, agreements and contracts are legally compliant and aligned with the latest legislation changes. Queensland agents have access to the REIQ’s standardised conjunction form — the EF032 Conjunction Agreement, a bespoke agreement to facilitate conjunction arrangements between agencies. This form, available through the REIQ’s Realworks platform, is the industry standard for formalising these arrangements.

The Two Main Models: Buyer Conjunction and Joint Appointment

There are two distinct structures under which Queensland agents work in conjunction, and conflating them creates problems.

The Buyer Conjunction Model

This is the classic conjunction. 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 set in place.

The critical compliance point in this model is the role of the conjuncting (buyer-side) agent. It is important to note that agency two will not be appointed to act on behalf of the buyer, and therefore must not provide property services to the buyer. Agency two may assist with facilitating the sale but should not make representations that they act for the buyer or have a fiduciary relationship with that buyer.

This is frequently misunderstood by newer agents. The conjuncting agency is not a buyer’s agent. They are working within the framework of the listing agent’s appointment, with the commission flow agreed between the two agencies. If the buyer has appointed a buyer’s agent, then this will not fall within the scope of a conjunction arrangement, as the agent must only act for one party in the transaction.

The Joint Appointment Model

In some circumstances, two agencies (or licensees) will work together under a commercial arrangement, where it is required that both agents are jointly appointed to sell the property “in conjunction” with the other under the PO Form 6 Appointment. This type of arrangement will usually be dictated by the terms of the commercial arrangement such as a licence, franchise agreement or partnership agreement.

In this model, both agencies appear on the Form 6 appointment. Both hold authority from the vendor. Both are directly accountable to the vendor. This is a different legal relationship from the buyer conjunction model, and requires different documentation and compliance steps. Agents considering this structure should ensure the Form 6 is drafted to accurately reflect both agencies’ involvement and scope of authority.

What Must Be in a Conjunction Agreement

A poorly drafted conjunction agreement is worse than no agreement at all — it creates the illusion of certainty while leaving critical matters open to dispute. The REIQ’s EF032 form covers the essential elements, but agents working with bespoke arrangements need to understand what those elements are.

The key components a valid Queensland conjunction agreement must address:

• Identity and licensing details of both the listing agency and the conjuncting agency, including licence numbers and ABN/ACN
• Property address and full property details
• Identity of the prospective buyer (this is more important than most agents realise — see below)
• The listing agent’s total fee as agreed with the vendor
• The agreed commission split between the listing agency and the conjuncting agency, expressed as a percentage
• GST treatment
• Payment timing — when the conjuncting agent receives their share after the listing agent receives payment
• Inspection arrangements and access protocols
• Termination conditions
• Privacy policy obligations regarding handling of personal information

Payment of the negotiated fee shall be made to the conjuncting or referring agent within seven days of monies being received by the listing agent. This timing clause is important. The conjuncting agent’s entitlement to payment is contingent on the listing agent first receiving commission from the vendor — it cannot be claimed independently of settlement.

The percentage of the commission that both agents are entitled to is negotiable. 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 the contract. Anything besides or beyond that scope is open to interpretation, so “implied” knowledge is not acceptable.

The Buyer Specification Problem — A Critical Case

One of the most significant risks in conjunction agreements is the failure to precisely identify the prospective buyer the arrangement relates to. This is not administrative formality — it goes directly to whether a commission entitlement exists at all.

The Queensland District Court 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 agent commission. The facts of this case are instructive for every Queensland agent who enters conjunction arrangements.

Best Price Real Estate involved a dispute arising from a conjunction agreement between the two parties. The agreement related 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, purchased the land, the entitlement to commission would not be recognised.

The decision shows the reluctance of courts to read outside the terms of an agreement. It is important when entering a contract to understand the nature of the terms. Anything which is not expressly stipulated will not be recognised solely on the grounds of good faith.

The conjuncting agent in Best Price lost their commission not because the property didn’t sell, but because the specific buyer named in the agreement was not the buyer who ultimately purchased. The court declined to extend the agreement’s scope by implication. The practical lesson: if the buyer changes, or if you want the agreement to cover any buyer introduced by your agency rather than a single named buyer, this must be expressly stated in the agreement.

Conjunction vs Referral — The Critical Distinction

These two arrangements are often confused, and the confusion has real compliance implications.

A referral is when agency one refers a potential client — this could be a seller or buyer — to an agency in a different location, market, or for a different type of service. This typically occurs when an agent has a client who is looking to buy or sell a property outside their area of expertise or geographical reach. In return for the referral of this client, the referring agent may receive a referral fee or a percentage of the commission from the successful transaction.

The functional difference is involvement. In a conjunction, the conjuncting agent remains actively involved in facilitating the transaction — they bring the buyer, potentially attend the property, and maintain a working relationship through to exchange. In a referral, the referring agent hands the client over and steps back. The referring agent typically receives a fee for the introduction, not ongoing participation in the sale process.

If your role is purely to introduce a client and step back, sometimes a straightforward Referral Agreement is enough. The REIQ produces a separate EF032A Referral Agreement form specifically for this purpose.

Getting this wrong creates compliance exposure. If an agent uses a conjunction agreement structure but is actually operating as a buyer’s agent — advising and acting for the buyer — they may be in breach of the prohibition on acting for both parties in the same transaction under the POA.

Commission Split Conventions

The POA removed the cap on commission in Queensland, meaning agents can negotiate any rate with their clients. The cap on commission was removed. Agents are able to negotiate any rate of commission with their clients, creating a more competitive marketplace.

Within the conjunction arrangement, the split between listing agent and conjuncting agent is similarly negotiable. Also known as agents in association, a conjunction typically involves one agent who is the exclusive listing agent and another who finds a willing buyer for the property. The two then split the commission according to a predetermined deal, which could be whatever percentage share they agreed to — usually something in the realm of an 80/20 split is the norm.

There is no fixed industry requirement, and agents should resist the assumption that any particular split is standard or expected. What matters is that the agreed percentages are documented in the conjunction agreement before the conjuncting agent takes any steps in relation to the property. The absence of a written, signed agreement before the introduction happens is the single most common reason commission disputes in conjunction arrangements end badly.

The listing agent retains the primary commission obligation from the vendor. The conjuncting agent’s entitlement flows through the listing agent — they have no direct claim on the vendor for their share of the commission. This is why the solvency and integrity of the listing agency matters. It is worth remembering that your conjunction agreement is only as strong as the agency agreement.

Protecting Yourself When Conjuncting — Risk Factors to Know

Beyond the drafting of the agreement itself, Queensland agents should be aware of structural risks that can undermine their entitlement entirely.

Listing agency insolvency. A clever developer established their own real estate agency. It was known by everyone that the developer had an interest in the real estate agency. That agency was used to conjunct with other agents as a means of selling the development. The developer subsequently placed the agency into liquidation before commissions were paid, leaving conjuncting agents with claims against an insolvent entity. The mechanism exploited was simple: the commission obligation flowed through the listing agency, which ceased to exist before it could be paid out.

Where a listing agency is a company, having the directors sign a director’s guarantee to ensure commission is paid is worth considering. More importantly, the conjunction agreement should contain a subrogation clause — where the rights of one person are passed on to another. In practical terms, this means a clause that, in the event the listing agency cannot pay, the conjuncting agent’s right to their commission share transfers so it can be claimed directly. This is not standard in many template agreements and is worth examining carefully.

Changes to the buyer. As Best Price Real Estate demonstrated, if the named buyer does not purchase and a different buyer does, the conjuncting agent may have no claim. If you want protection across any buyer you introduce — not just one named party — the agreement must say so explicitly.

Scope of authority. When it comes to providing authority to sell property, it’s important that a written agreement is in place as there is significant room for people to act outside the scope of what is expected. A Conjunction Agreement can limit or specify this extent of authority to avoid any mishaps later. The conjuncting agent must not exceed the scope of what the listing agent has authorised. Making representations to the buyer about price, vendor instructions, or settlement terms without the listing agent’s knowledge or authorisation creates liability.

Disclosure obligations. Both agencies remain bound by the disclosure obligations under the POA and the Australian Consumer Law. Any misleading or deceptive conduct in marketing or negotiation by the conjuncting agent is not rendered compliant simply because they are acting as a sub-participant rather than the primary agent.

Conjunctions and Project Marketing

Conjunction agreements are an effective tool for widening a client’s database of prospective purchasers. They are commonly used in the development marketplace to provide the greatest number of purchasers when there are a lot of properties to sell.

In a project marketing context — off-the-plan developments, land releases, multi-lot developments — conjunction arrangements operate at scale. One project marketing agency holds the Form 6 appointment, and multiple external agencies are engaged under conjunction agreements to introduce buyers from their own databases. This structure is legitimate and efficient, but the risks compound with scale.

In the Queensland District Court decision of Podium Project Marketing Pty Ltd v B Global (Aust) Pty Ltd [2024] QDC 219, the Court examined a real estate agent’s entitlement to commission where it was engaged to sell residential lots in a development on the basis of an open listing and had engaged various entities to act as sub-agents to identify and secure buyers. The defendant property developer appointed the plaintiff sales agent as its non-exclusive agent for the sale of 60 lots pursuant to three Property Occupations Form 6 Appointments.

The Court found that section 89 does not prohibit the payment of commissions to a person where any activities leading to a sale were performed by another person — whether or not employed by the first person — who was not, at the time, the holder of a property agent’s licence or a salesperson’s registration certificate. Accordingly, the agent was entitled to recover and keep the commissions payable to it by the developer for its activities in securing buyers of the relevant lots. This is an important clarification for project marketing arrangements: the primary agent’s commission entitlement is not destroyed simply because unlicensed sub-agents were involved in introducing buyers, provided the primary agent itself held the relevant licence and appointment.

Are Conjunctions Still Relevant?

The rise of national property portals changed the economics of buyer conjunctions significantly. While buyer conjunctions have become largely obsolete by the advent of property portals like realestate.com.au, seller conjunctions — otherwise known as referrals — remain in regular use. The original premise of the buyer conjunction — that one agent had exclusive access to a buyer who couldn’t otherwise find a property — is less compelling when every buyer can search every listing independently.

However, conjunction arrangements remain very much alive in specific circumstances: niche buyer databases (particularly interstate and international buyers), project marketing with multiple feeder agencies, high-end residential where buyer relationships are genuinely exclusive, and commercial property where buyer and property matching still relies on agent-to-agent networks.

Conjunctions may be more common when you’re first starting out in real estate, chiefly because you’re dealing with a lot more buyers than sellers. This remains true. New agents building a buyer database before they have a significant listing inventory will encounter conjunction opportunities earlier in their careers.

What This Means for Queensland Agents

A conjunction agreement in Queensland real estate is a legitimate and often commercially useful arrangement — but it only protects you if it is properly documented, properly scoped, and properly understood before you act on it.

Several non-negotiable conclusions follow from the law and the case history:

Get it in writing before you do anything. An oral agreement to share commission in a conjunction is almost impossible to enforce cleanly. The moment you introduce a buyer to a listing agent’s property, your leverage to negotiate the split is gone. Execute the EF032 or equivalent written agreement before you take any step in relation to the property.

Name the buyer precisely — or name the scope precisely. The Best Price Real Estate decision is a sharp reminder that the courts will hold you to exactly what is written. If you want to be paid for any buyer you introduce, the agreement must say “any buyer introduced by [Agency Name]” — not just name a single prospective purchaser.

Check the listing agency’s Form 6 appointment. Your conjunction agreement is only as strong as the underlying appointment between the listing agent and the vendor. Your conjunction agreement is only as strong as the agency agreement. Verify the appointment is valid, current, and that the listing agent has authority to conjunct.

Understand your role — and stay inside it. The conjuncting agent must not provide property services to the buyer in a way that constitutes acting for them. Advising the buyer on price, conditions, or negotiation strategy takes you outside the scope of a conjunction arrangement and into territory that creates compliance and liability exposure.

Use the REIQ’s standardised forms. The REIQ’s forms, agreements and contracts are legally compliant and aligned with the latest legislation changes. The EF032 Conjunction Agreement available through Realworks is the appropriate starting point. Bespoke amendments for complex arrangements — particularly in project marketing or joint appointment structures — should be reviewed by a qualified solicitor before execution.

The conjunction mechanism exists precisely because Queensland real estate is a networked industry. Used properly, with a clear written agreement and a mutual understanding of scope, it closes deals that neither agency could close alone. Used carelessly, it produces commission disputes, compliance breaches, and the kind of court outcomes that no one wanted to fund.