Who Pays the Real Estate Agent Commission in Queensland — Buyer or Seller?

A vendor rings you after signing the Form 6 and asks, “So the buyer pays your commission out of the purchase price, right?” It’s a question that comes up more often than most agents expect — and getting the answer wrong, or giving a vague answer, can unsettle a listing relationship before it’s even begun.

The answer is unambiguous: when you sell your home in Queensland, you — the seller — pay the real estate agent’s commission. The obligation sits entirely with the vendor. The buyer has no legal liability for it. That said, the full picture involves more nuance than a single sentence covers, and every agent in Queensland should understand it precisely — for their own protection and for the clarity they owe their clients.

The Seller Pays: The Legal Position in Queensland

The commission liability in a Queensland residential sale flows directly from the agency relationship. A selling agent is a property agent appointed under a written agreement by the seller to sell the property. The seller engages the agent. The seller is the agent’s principal. The seller pays the agent’s fee.

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). That document is the seller’s agreement with the agency. It records the commission rate, when it becomes payable, and all other terms of the engagement. Critically, without a valid appointment, an agent cannot legally claim commission for a sale.

If an agent has been validly appointed to sell a property in accordance with a Property Occupations Form 6 Appointment, the agent is ordinarily entitled to receive commission from their seller client upon completion of the contract of sale pursuant to the terms of the appointment. The buyer is not a party to that appointment. They have no obligation under it. Their purchase price goes to the seller, and from those proceeds, the seller discharges the commission liability.

For overseas investors, interstate buyers, or clients coming from markets like the United States — where buyer’s agent commission arrangements have historically been structured differently — this distinction is important to explain clearly at the outset.

The Form 6 and How Commission Is Documented

The Form 6 is the legal foundation of the commission arrangement. In accordance with the Property Occupations Act 2014, agents must express the commission payable and must specify a commission amount that is GST inclusive, as well as specify when commission is payable. There is no discretion here — those requirements are mandatory for the appointment to be valid.

The appointment should spell out the commission rate, state whether GST is included or excluded, and clearly identify any tiers or thresholds in the calculation. An agent quoting “2.5% plus GST” and an agent quoting “2.5% GST inclusive” are quoting materially different amounts on a $900,000 sale. Get this right on the Form 6, and be explicit about it in your listing presentation.

The commission must be set in writing when you appoint your agent. Verbal agreements about commission, or oral amendments to a Form 6 rate, have no legal standing. If a seller later contests the commission amount, only what appears in the signed Form 6 can be enforced. Legislation imposes certain conditions on the recovery of commission by an agent, including that the person is not entitled to sue for, recover, or retain a reward that is more than what is stated in the appointment form.

Referring to a standard “REIQ” or “prescribed” commission when speaking with clients can constitute misleading and deceptive conduct. This matters because it goes directly to how you present the fee conversation at listing. You cannot anchor a commission discussion to a supposed “industry standard” or “REIQ rate” — there is no “standard” rate of commission in Queensland, as maximum commission rates for residential real estate were deregulated in 2014.

What Rate Does the Seller Actually Pay?

Commission rates on residential home sales in Queensland have been deregulated since December 2014. Before that, the state set a maximum commission rate of 5% on the first $18,000 and then 2.5% for the remaining balance. That tiered structure is no longer a regulated maximum, but it remains a reference point many sellers and even some agents still cite. Many QLD agents still offer the 5% on first $18,000 plus 2.5% on the remainder structure, which works out near the current average on typical sale prices.

In practice, the average commission rate in Queensland is around 2.72%, though it can be as low as 1.5% or as high as 3.8% depending on the area. Those figures vary depending on the property type, location, expected sale price, and what marketing services the agent includes in the commission rather than charging separately.

Sellers also pay GST on the commission. GST — 10% of the commission — is payable on the agent’s commission by the seller. This is often where clients get confused on quoted rates. If an agent quotes 2.5% and the Form 6 says “plus GST,” the effective rate on the seller’s proceeds is 2.75%. Always confirm whether your quoted rate is GST inclusive or exclusive when presenting.

Agents can also structure tiered or incentive-based commissions. Agents can be paid based on an incentive-based or tier-based commission structure, which makes the commission rate dependent on the agent’s performance, motivating them to get a higher sale price, with the seller paying a higher rate on anything above a set threshold. These arrangements are lawful, but every tier and threshold must be clearly specified in the Form 6.

When Commission Becomes Payable

Knowing who pays is only half the picture. Knowing when the obligation crystallises is just as important — for agents protecting their entitlement, and for sellers managing their cash flow expectations.

Most real estate contracts state that the commission must be paid once the sale is “unconditional,” because the agent has completed their role under the contract at that point. In practice, that means once all conditions — finance, building and pest inspection, any special conditions — have been satisfied or waived, the commission is typically earned.

The timing, however, depends on what the Form 6 says. 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 — and agents should understand the timing clearly, as this matters greatly if a contract collapses before settlement.

There is a particular scenario sellers sometimes misunderstand: if a sale falls through after the contract has become unconditional, the seller does still need to pay the commission. That is a difficult conversation, but it is one grounded in the legal reality of when the agent’s obligation is completed. The agent introduced the ready, willing, and able buyer. The failure to complete belongs to the parties to the contract, not to the agent’s engagement.

Under the REIQ Essential Terms and Conditions, the seller client agrees to pay the agent commission if a contract of sale is entered into with a buyer — whether within or after the term of the appointment — where the agent is the effective cause of sale, provided that the contract is completed, the seller defaults under the contract, or the contract is terminated by mutual agreement. This clause protects agents from sellers who try to avoid commission after an unconditional contract is already in place.

What the Buyer Does and Does Not Pay

The buyer has no obligation to pay the listing agent’s commission. That is the position in the standard Queensland residential transaction, and it distinguishes our market from some other jurisdictions where buyer’s representation fees are separately charged or negotiated.

However, buyers are not entirely insulated from all fees in a transaction. Buyers who engage their own buyer’s agent — a separate agent appointed to act in their interests — do pay a fee to that agent directly. That is a distinct engagement from the listing agent’s commission. It is worth noting that under the Property Occupations Act 2014, the concept of a buyer’s premium exists at auction. This is a separately negotiated charge that, where agreed, can be levied on the buyer at an auction sale. It is not common in Queensland residential practice, and any such arrangement must be disclosed and agreed in writing. Agents should not confuse this narrow provision with the general commission arrangement — in the overwhelming majority of residential transactions, no commission charge falls on the buyer.

One change introduced by the Property Occupations Act 2014 was removing commission disclosure requirements to buyers — agents no longer need to disclose to the buyer how much commission they receive from the seller. That change simplified the transaction for agents, but it also means buyers who are curious about agent remuneration simply need to understand that the fee sits with the vendor.

Conjunction Sales and How Commission Is Split

When a sale involves two agents — a listing agent who holds the Form 6 with the seller, and a selling agent from another office who introduces the buyer — the seller still pays only one commission. If two or more agents work together to sell a home, the seller still only needs to pay one commission. The buyer pays nothing additional.

The commission is split between the selling agent and the agent who introduces the buyer, and they work it out between themselves. The mechanism and proportion of that split is agreed between the two agencies — it is not a matter for the seller to negotiate or concern themselves with.

From a compliance perspective, the seller’s obligation remains solely to the listing agent under the Form 6. How that agent then distributes a conjunction share to the cooperating agency is a commercial arrangement between the agents. Agents entering conjunction arrangements should document the split agreement in writing before exchanging contracts, to avoid any dispute after settlement.

When the Seller Disputes or Refuses Commission

Sellers occasionally dispute their obligation to pay commission — usually when a contract falls through, or when they believe they found the buyer themselves. Understanding the legal position protects your right to be paid.

If a seller client refuses to pay commission owing, agents should first explore conflict resolution through negotiation and discussion at an early stage to avoid litigation. 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) depending on the value of the commission sought. QCAT can hear minor debt claims up to $25,000. For larger commission amounts, agents may seek to start proceedings for breach of contract in the Magistrates Court for claims over $25,000 and up to $150,000 by filing and serving a claim and statement of claim.

The distinction between exclusive agency and sole agency directly affects entitlement when the seller or another party finds the buyer. The only difference between an exclusive agency and a sole agency is the extent of the entitlement of the selling agent to receive commission. Under an exclusive agency, a selling agent is entitled to commission on the sale of the property in accordance with the agreement with the seller, whether or not the selling agent is the effective cause of the sale. However, under a sole agency, the selling agent would not be entitled to the commission if the seller was the effective cause of the sale.

That is a material distinction. When accepting a sole agency appointment, agents must understand their entitlement is contingent on being the effective cause of the sale. When accepting an exclusive agency appointment, the causal link is not required — entitlement accrues simply from the property selling during the appointment period.

Marketing Costs: Separate from Commission

Sellers also need to understand that marketing and advertising costs — portal listings, photography, signboards, video — are generally not included in the commission and are payable in addition. The seller will need to reimburse the agent for their expenses, but only if those costs have been discussed and agreed in advance, and any costs must be authorised in advance.

The appointment should itemise the marketing approved, the cost, who pays, and whether those costs are payable even if the property does not sell. If the agent receives any rebate, discount, or commission connected to those expenses — for example, from a portal or publisher — the appointment must disclose the amount or method for calculating it.

This transparency obligation under the Act is easy to overlook during a busy listing presentation. It isn’t optional. Agents receiving any benefit from a marketing provider in connection with a seller’s property must disclose it.

What This Means for Queensland Agents

The seller pays the commission — every time, in every standard residential sale. That is the legal architecture of the Queensland agency relationship, and there is no ambiguity in the Property Occupations Act 2014.

For agents, the practical implications are clear:

• Complete the Form 6 with precision: commission rate, GST treatment, and the trigger event (unconditional contract or settlement) must all be specified correctly. Section 104 of the Act sets out the requirements which must be satisfied for an appointment to be valid and enforceable — a defective Form 6 can cost you your entire commission.
• Never reference a “standard” or “REIQ” rate. The market is fully deregulated. Your commission is what you negotiate and what the Form 6 records.
• Explain the commission structure to sellers in plain terms at listing, including when the obligation to pay arises and that it can survive a contract that fails after going unconditional.
• In conjunction deals, document the split arrangement in writing before contracts are exchanged.
• Disclose all rebates, referral fees, or benefits from marketing providers in the appointment.

For overseas investors and interstate buyers reviewing this as part of their due diligence: in Queensland, you do not pay the listing agent’s commission. Your costs are stamp duty (transfer duty), conveyancing fees, and — if you engaged one — your buyer’s agent’s fee. The vendor’s commission is the vendor’s obligation entirely.