When Does a Queensland Real Estate Agent Actually Get Paid? Contract vs Unconditional vs Settlement

You’ve worked the listing for weeks, negotiated hard, and finally have a signed contract on the table. The seller is happy, the buyer is locked in — so when does the commission actually hit the agency account? The answer is not as straightforward as most new agents assume, and getting it wrong has real financial and legal consequences.

The Queensland real estate commission payment timeline is governed by three overlapping sources: the Property Occupations Act 2014 (Qld) (the POA), the terms of the Form 6 appointment, and — where applicable — the REIQ standard conditions attached to that appointment. Understanding how these interact is not optional knowledge. It is the foundation of every transaction you’ll ever run.

The Legislative Foundation: What the POA Actually Says

Queensland agents must be formally appointed in writing before they are entitled to sell a property or charge commission. This is done using the prescribed Appointment of Property Agent (Form 6) under the Property Occupations Act 2014 (Qld). Without a valid appointment, an agent cannot legally claim commission for a sale.

This is the first gate. Before the question of when commission is paid can even be asked, you need a properly executed Form 6 that was signed before you commenced selling activities. Strict compliance with the requirements set out in the Act, and having a valid and enforceable appointment, are essential in protecting an agent’s entitlement to commission.

The POA does not prescribe a fixed moment at which commission becomes payable. Instead, there is no government cap on real estate commission in Queensland, and the commission rate is negotiable and must be agreed in writing before the agent starts work. Critically, agents must specify a commission amount that is GST inclusive and specify when commission is payable. That timing specification — written into the Form 6 — is where the commission trigger lives.

Section 89 of the POA provides the restriction framework for recovery. Section 89(1) of the Act provides that a person is not entitled to sue for, recover or keep a reward or expense for the performance of an activity as a property agent unless, at the time the activity was performed, the person held the relevant licence or registration. This means the entire entitlement structure stands or falls on the validity of the appointment and the licensee’s status at the time of performance.

The Three Possible Commission Triggers

Under Queensland practice, the commission payment trigger can be set at one of three points in the transaction lifecycle. Which trigger applies depends entirely on what is documented in Part 7 of the Form 6, read alongside any REIQ standard conditions attached to it.

Trigger 1: Signed Contract (Formation)

Some appointments specify that commission is earned — and becomes payable — at the moment a binding contract of sale is formed. This is the earliest possible trigger. Under this structure, if a buyer and seller execute a contract that is still subject to conditions (finance, building and pest inspection, or similar), the commission is technically owed from that point.

In practice, this trigger is uncommon in Queensland residential sales but does appear in commercial appointments and some development projects. Its principal risk to the seller is obvious: they owe commission even if the deal falls over during the conditional period because the buyer can’t secure finance. Agents relying on this trigger need to make absolutely certain the Form 6 reflects it unambiguously, and that the seller understood what they were agreeing to.

Trigger 2: Unconditional Contract

The more frequently encountered trigger in Queensland is the point at which a contract becomes unconditional — that is, when all special conditions have been satisfied or waived and the contract is binding on both parties without qualification.

An unconditional contract refers to when all the buyer’s conditions (such as building and pest inspections and loan applications) have been satisfied. This signifies to both the buyer and seller that they are seriously proceeding with the contract and settlement will occur.

If there is no REIQ Appointment of Real Estate Agent Form supplied with the Form 6, the general stance is that once the contract becomes unconditional, the agent is entitled to claim commission, regardless of whether that contract settles or is terminated. This is a critical point many agents and sellers overlook. The entitlement crystallises at unconditional, not at settlement.

While it is rare, there are times where the buyer makes their contract unconditional and can no longer complete settlement. The contract of sale is clear on what happens to the buyer and seller in that circumstance. However, the contract of sale does not make clear what happens between the agent and seller. That relationship is governed by the Form 6 alone.

Trigger 3: Settlement

The majority of Queensland residential sale appointments — particularly those using the REIQ standard conditions — set settlement as the point at which commission becomes payable in practice. The REIQ Appointment of Real Estate Agent Form expressly states in standard condition 5 when commission is payable to the agent by the seller.

Under the Form 6, Part 7 Commission, the seller may insert a special condition that the agent’s commission is only payable if and when a contract of sale for the property settles. When this is the position — as it commonly is in residential transactions — the agent does not receive payment until the keys change hands and the purchase price is disbursed.

Operationally, this is where invoicing discipline matters. It is important that agents send an invoice for their commission to both parties’ conveyancing solicitors well in advance of the settlement date for the contract of sale so that a cheque can be drawn at settlement for the agent’s commission. Agents who leave this step until the week before settlement risk delays, disputes, and occasionally a settlement that completes without their payment arranged.

When a Contract Falls Over: Commission and the Deposit

The scenario most likely to generate a commission dispute is a contract that goes unconditional, then fails to settle. The buyer commits, all conditions are met, and then — for whatever reason — settlement does not occur.

If the seller can’t settle due to their bank’s delay, the buyer may be entitled to terminate the contract and walk away from the sale, meaning the seller may still have to pay the agent their commission even though the sale didn’t go through. This is the kind of outcome that surprises sellers and, if not proactively explained at the time of Form 6 execution, generates complaints and commission disputes.

Regardless of whether an REIQ Appointment of Real Estate Agent Form is provided as part of the Form 6, it is very possible the seller may be required to pay two lots of commission. This will most likely occur if the first contract is terminated after it becomes unconditional and the second subsequent contract settles.

The deposit question is directly relevant here. It is recommended to ensure that the total deposit under the sale contract equals or exceeds the commission such that if the buyer defaults and has to forfeit the deposit, the deposit will cover the commission and you are not out of pocket. This is prudent advice for any agent structuring a transaction — a deposit set below the likely commission amount creates cash flow risk if the deal collapses post-unconditional.

Under the REIQ standard contract terms, an unconditional contract that is then terminated by buyer default generally results in the deposit being forfeited. The REIQ appointment conditions address what this means for the agent’s commission. If a sale settles, the agent gets paid; but even if a sale falls over, the agent still gets paid provided the deposit is “liable to be forfeited.”

The Effective Cause of Sale and Open Listings

The commission payment timeline has a second dimension for agents operating under open listings: not just when is commission paid, but by whom, and to whom. For open listings, the entitlement to commission flows to the agent who was the effective cause of sale.

Under an open listing, commission is normally payable only to the agent who was the “effective cause of sale” — the agent whose actions brought about the sale. This concept has been examined by Queensland courts on multiple occasions. In the 2024 Queensland District Court decision of Podium Project Marketing Pty Ltd v B Global (Aust) Pty Ltd [2024] QDC 219, the Court referred to authorities which demonstrated that an agent may be the effective cause of sale whether it is the sole cause of the sale or an effective cause of sale, among other causes.

There is a further wrinkle when a deal collapses and the same buyer returns later. An agent may be able to charge their commission where the current contract is terminated but a new contract is entered into and settles at a later date, provided the agent was the “effective cause” of that later contract. For example, a buyer may enter into a contract, then validly terminate under the finance condition. A few months later, the buyer — in a better financial position — approaches the seller directly and a new contract is formed without the agent’s assistance. That contract goes on to settle. Whether commission is owed in that scenario turns on the agent’s records and the facts — which is why documenting every inspection, enquiry, and offer matters.

The Practical Settlement Mechanics

Assuming a commission trigger at settlement, the physical flow of payment works as follows. The agent issues a commission invoice to both the seller’s conveyancer and the buyer’s conveyancer ahead of the settlement date. The seller’s conveyancer holds a portion of the sale proceeds in trust pending settlement. At settlement, the agreed commission (inclusive of GST) is disbursed directly to the agency from the settlement funds. The agent does not receive the money from the buyer — it comes from the seller’s proceeds.

This is why agents do not chase the buyer for commission. The contractual relationship for commission is entirely between the agent and the seller, as set out in the Form 6. The buyer has no obligation to the agent.

The 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 collected. This restriction under section 88 of the POA means an agent who negotiates a seller down from a higher listed price cannot claim commission on the original asking price — it must be calculated on the actual contracted sale price.

When the Seller Refuses to Pay

Commission disputes do occur, most often when a seller feels the outcome didn’t justify the fee, or when a deal has fallen apart in unusual circumstances. The available recovery pathways depend on the quantum involved.

If a seller client refuses to pay commission owing, agents should first explore conflict resolution through negotiation and discussion with their client at an early stage, to avoid litigation and potentially significant legal costs. However, if the matter cannot be resolved, agents may commence a minor debt claim to recover commission through the Queensland Civil and Administrative Tribunal (QCAT). QCAT can hear minor debt claims up to $25,000.

For claims over $25,000 and up to $150,000, agents may seek to start proceedings for breach of contract in the Magistrates Court by filing and serving a claim and statement of claim. Larger commission claims would proceed in the District Court.

The practical lesson: the Form 6 is the agent’s best protection. A well-drafted, properly executed appointment with an unambiguous commission trigger and amount is far easier to enforce than one with gaps or handwritten alterations that were never properly agreed.

How the Form 6 Governs Everything

It bears repeating because agents sometimes treat the Form 6 as administrative paperwork rather than the commercial contract it is. An agent needs a properly completed and signed Form 6 before performing the services. If there was no valid appointment at the relevant time, the agent cannot legally charge commission — even if a sale occurs.

The Form 6 should set out the exact event that “earns” the commission. This could be on formation of an unconditional contract, on settlement, or another clear milestone. Understanding the timing matters enormously if a contract collapses before settlement.

The seller’s ability to modify the commission trigger should also be flagged at listing. If an REIQ Appointment of Real Estate Agent Form has also been supplied to the seller, the seller can cross out by hand the circumstances under which standard condition 5 may apply. If a seller is looking at including these special conditions, it is good practice to not just make the amendment, but to also notify the agent before the agent signs the agreement, to give the agent the opportunity to review and negotiate the terms before they are bound. Agents who are presented with a Form 6 that has been modified in this way need to read it carefully before signing — they may be agreeing to a commission structure that significantly reduces their protections.

For exclusive and sole agency appointments, there is a further consideration. Under an exclusive or sole agency, the agent is usually entitled to commission if the property sells during the exclusive period — even if the seller or another agent introduces the buyer. The 90‑day statutory cap for residential exclusive/sole appointments should be monitored, with any renewal done in writing.

What This Means for Queensland Agents

The Queensland real estate commission payment timeline is not a single moment — it is a contractual event determined by what you and your seller agreed in writing on the Form 6. Here is what that means in practice:

Know your trigger before you start. Read the Form 6 you’ve executed. Is commission due at unconditional, at settlement, or at some other defined milestone? If the Form 6 is ambiguous, your entitlement may be too.

Invoice early and in writing. For settlement-triggered commissions, get your invoice to both conveyancers well before the settlement date. Do not assume the solicitor will chase you — they will not. If the commission isn’t arranged before funds are disbursed, recovery becomes significantly more complicated.

Size your deposit appropriately. When negotiating the deposit amount with the buyer, keep in mind that if the deal goes unconditional and then collapses through buyer default, the deposit may be your seller’s only practical source of recovery — and that includes covering your commission. A deposit below the commission amount leaves the seller exposed.

Document the effective cause. For open listings in particular, maintain meticulous records of every buyer interaction: inspection dates, names, enquiry logs, correspondence. If a buyer re-emerges months later and completes a purchase without re-engaging you, those records determine whether you have a legitimate commission claim.

Do not assume a fallen deal means no commission. If a contract went unconditional and the buyer defaulted, your entitlement may survive the termination. Review the Form 6 and standard conditions carefully before agreeing to walk away from a deal without payment.

An agent’s entitlement to commission will always be determined on the facts of each case. That is not a disclaimer — it is the most practically useful sentence in this entire subject. No two situations are identical, and the Form 6 you executed governs yours. Get it right at the start, and the payment timeline becomes straightforward. Get it wrong, and no amount of goodwill will fill the gap.