What Is a Conjunction Agreement in Queensland Real Estate? Definition and Agent Guide

A conjunction agreement is a written contract between two licensed real estate agents from different agencies — the listing agent and the co-joined agent — that formalises their cooperation on a specific property sale and sets out exactly how the commission will be divided if the transaction completes. It is an agent-to-agent instrument: in a typical scenario, one agency holds the authority from the vendor and another agency introduces a buyer, and the conjunction agreement records how the commission will be split between those agencies and the conditions for payment. Without this document in place, any verbal understanding between agents is unenforceable and leaves both parties exposed.

How Conjunction Agreement Works in Queensland Real Estate

Conjunction agreements arise in real estate sales involving two agents: Agent A is under an obligation to sell a property in accordance with the terms of the agency, and when they transfer their right to sell to Agent B, a conjunction agreement is created. It is worth being precise about the structure here. The conjunction agreement does not replace or override the listing agent’s appointment with the vendor. The vendor remains contracted to the listing agent. What the conjunction agreement does is establish the commercial relationship between the two licensed agents — who does what, and who gets paid what.

It is important to separate the principal’s commission obligation from the agent-to-agent split. The conjunction agreement should make clear that inter-agent payments do not change what the vendor owes under the listing agreement. This is a point that frequently causes confusion in practice. The vendor still pays one commission to the listing agent. That listing agent then pays the co-joined agent their agreed share out of the total commission received. The vendor generally has no direct financial relationship with the co-joined agent.

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. If this is the case, it must be mentioned in the conjunction agreement. The percentage of the commission that both agents are entitled to is negotiable. In Queensland practice, common splits range from 50/50 to varying arrangements depending on the extent of each agent’s contribution — whether the co-joined agent is merely introducing a buyer, conducting inspections, or handling the full buyer-side negotiation.

The Role of the Listing Agent

The listing agent holds the appointment under section 102 of the Property Occupations Act 2014 (Qld). Under the Act, an “associate” includes a property agent who acts, for a sale of property, in conjunction with a property agent appointed under section 102 to sell the property. The listing agent remains responsible for the sale to the vendor, and their duties to the vendor — including the duty to act in the vendor’s best interests — do not diminish because a conjunction has been executed. The co-joined agent operates within the scope of the authority granted by the conjunction agreement, not by virtue of any separate vendor appointment.

Payment Mechanics and the Trust Account

Commission on a Queensland residential sale is held in the listing agent’s trust account after exchange and paid out on or after settlement in accordance with the Property Occupations Act 2014 (Qld). The listing agent then pays the co-joined agent their conjunction share from those funds. This is a critical practical point: the co-joined agent’s entitlement flows through the listing agent, not directly from the vendor. If the listing agent’s trust account is in dispute or the sale falls over, the co-joined agent’s claim is against the listing agent under the terms of the conjunction agreement, not a direct claim against the vendor.

Why Conjunction Agreement Matters for Queensland Agents

The short answer is that without a properly documented conjunction agreement, an agent who contributed significantly to a sale may walk away with nothing. 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, and 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 practical lesson from Best Price Real Estate is stark. 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. This is not a procedural technicality. An agent who relies on a handshake deal, a text message, or a verbal promise that “we’ll split it down the middle” has no enforceable claim if the other party refuses to honour it.

In Best Price Real Estate, the court also denied the respondent’s argument that the applicant had a duty to cooperate, because performance of the conjunction agreement relied solely on the respondent fulfilling the promise. Mutual performance was not required, meaning that the duty to cooperate did not apply. This reinforces that the terms of the written document control the outcome — not what agents believed the arrangement to be.

Beyond protecting commission entitlement, conjunction agreements also clarify the scope of each agent’s authority to the buyer. A co-joined agent who steps outside the bounds of what the conjunction agreement authorises — for example, making representations about price or conditions without listing agent approval — may expose both agencies to complaints under the Property Occupations Act 2014 (Qld) and the conduct standards set under the Property Occupations Regulation 2014 (Qld). Getting the document right protects both parties.

Legal Requirements and Common Mistakes in Queensland Conjunction Agreements

What the Document Must Cover

Queensland does not prescribe a mandatory prescribed form for conjunction agreements in the Property Occupations Act 2014 (Qld) in the same way it prescribes the form of an appointment to act. However, the REIQ has historically provided a standard conjunction agreement form (previously referenced under the now-repealed Property Agents and Motor Dealers Act 2000), and the Act’s broader requirements around commission, conduct, and documentation apply. A conjunction agreement governs the relationship between collaborating agents, including scope, commission split, conduct, and payment triggers.

At a minimum, a conjunction agreement for a Queensland property sale should clearly identify the legal names and licence or registration details of both agencies, the full address and lot description of the property, the agreed commission split expressed as a percentage or dollar amount, the event that triggers the entitlement to payment (typically unconditional exchange and settlement), and the scope of the co-joined agent’s authority — whether that extends to conducting inspections, negotiating offers, or is limited to introducing a named buyer. It should also address communication protocols, termination conditions, GST implications, and privacy policies regarding personal information handling.

The GST treatment of the commission payment from the listing agent to the co-joined agent requires attention. If both agents are registered for GST, the co-joined agent will issue a tax invoice for their share and the listing agent claims the input tax credit. Failing to account for this correctly creates compliance exposure under the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

The Most Dangerous Mistakes

Vague buyer identification is the single most common cause of commission disputes in conjunction sales — as demonstrated in Best Price Real Estate. The court determined that in the event there was ambiguity surrounding the prospective purchaser, the conjunction agreement may have been recognised. This would give rise to an entitlement to commission. But the terms in that case were clear, and the co-joined agent paid the price. Where a co-joined agent is introducing a specific buyer or a buyer from a specific pool, the agreement should identify them as precisely as possible — by name, entity, or a clearly defined category.

Missing or incorrect signatures are another frequent problem. Administrative slips such as missing signatures or wrong entity names make enforcement harder. Double-check names, ABNs, and execution. An agreement executed by a salesperson rather than the principal licensee of the agency may not bind the agency as a legal entity. Both principals need to sign, or the agreement needs to clearly authorise who is signing on behalf of each agency.

Unclear payment triggers lead to disputes about when the entitlement crystallises. Does the co-joined agent get paid at exchange? At unconditional exchange? At settlement? If a buyer the co-joined agent introduces goes into a contract subject to finance and then fails to proceed, is any payment owed? These questions must be answered expressly in the document, not left to later negotiation.

Failing to address termination is another gap. What happens if the listing expires before the introduced buyer proceeds to contract? What if the vendor withdraws the property and then relists it in six months? All conditions related to termination of the agreement, taxation, communications to and from the vendor, and the privacy policy must be clearly stated in the conjunction agreement.

The Sole Agency Complication

Queensland agents holding a sole or exclusive agency appointment face a particular complication. A sole or exclusive agency agreement generally restricts other agents from marketing the property. Entering into a conjunction does not automatically override those restrictions — it requires that the vendor either consents to the conjunction arrangement or that the agency agreement expressly permits the listing agent to appoint a co-joined agent. Agents should check the agency authority carefully before executing a conjunction. Confirming which agent holds the vendor authority and any limits on the other party’s role — such as introducing buyers only, or also handling inspections and negotiations — is an essential clause in any conjunction agreement.

What Queensland Agents Need to Know About Conjunction Agreements

Both Agents Must Be Licensed

Both the listing agent and the co-joined agent must hold a current Queensland real estate agent licence issued under the Property Occupations Act 2014 (Qld). A salesperson employed by a licensed agency cannot be a party to a conjunction agreement in their own name — the agreement must be between the two principal licence holders (or the licensed agencies they operate). Salespersons who work on conjunction sales do so under the authority of their principal licensee, and the commission flows to the agency before being distributed internally.

This is not a formality. If a co-joined “agent” is operating without a current licence, or has allowed their licence to lapse, the conjunction agreement may not be enforceable and both parties may face regulatory consequences. The Property Occupations Act 2014 (Qld) makes acting as a property agent without a licence a serious offence. Verify the licence status of any agent you propose to conjunct with before signing anything.

Conjunction Is an Agent-to-Agent Arrangement — the Vendor Stays Out

A recurring misconception is that the vendor needs to sign or approve the conjunction agreement. The question often arises: if the conjunction agreement is signed by only the two real estate agents and not the vendor, how can it be enforced if it goes to court? The answer is that the conjunction agreement is a contract between the two agencies, enforceable on its own terms. The vendor’s interest is in the listing agency’s performance under the agency appointment — the vendor does not control how the listing agent chooses to cooperate with other agents, unless the agency agreement restricts it.

That said, courtesy and transparency are good practice. Informing a vendor that a co-joined agent is being brought in — and that the commission split occurs within the total agreed commission rather than on top of it — reduces the risk of misunderstanding or complaint. It is also consistent with the duty to keep clients informed, set out in the conduct standards under the Property Occupations Regulation 2014 (Qld).

The Distinction Between Conjunction and Referral

Not every inter-agency cooperation is a conjunction. A referral occurs when one agent simply passes a buyer’s contact details to a listing agent without taking any ongoing role in the transaction. A conjunction involves active ongoing participation — conducting inspections, presenting offers, working with the buyer through finance and conditions. If the role is purely to introduce a client and step back, sometimes a straightforward referral agreement is enough. But if both parties are actively working the listing or negotiating the deal, a purpose-built conjunction agreement is usually the better fit.

The distinction matters for compliance. A referral fee between agencies for simply passing on a contact does not require the same formal conjunction agreement structure, but it does need to be documented and GST-compliant. A co-joined agent who takes an active role — attending inspections, presenting offers, liaising with the buyer — is acting as an agent in the transaction, and the conjunction agreement framework with its licence and authorisation requirements applies.

Licence Records and File Keeping

Both agencies should retain a fully executed copy of the conjunction agreement on their files, linked to the relevant transaction. Under the Property Occupations Act 2014 (Qld) and the Property Occupations Regulation 2014 (Qld), licensed agents are required to maintain accurate records of transactions. A conjunction agreement is a transaction document and should be stored accordingly. In the event of an audit or complaint to the Office of Fair Trading, you will need to produce it.

What This Means for Queensland Agents

Conjunction agreements are one of those areas where the difference between a properly documented deal and a handshake arrangement can cost an agent their entire commission on a sale. The Best Price Real Estate case from the Queensland District Court is a standing reminder that courts will enforce what is written — and will not rescue agents who rely on implied terms or good faith to fill in gaps their agreement left open.

The practical standard for Queensland agents is straightforward. Before you do any work on a conjunction basis, get the agreement in writing and signed by both principals. Identify the property specifically, describe the buyer or buyer pool as precisely as possible, state the split as a percentage of the total commission, specify when payment is triggered, and address what happens if the sale does not proceed. Check that the agency you are conjoining with holds a current Queensland real estate agent licence. Confirm your listing authority permits conjunction. Keep a copy on file.

Agents who operate under a sole or exclusive agency appointment should read their appointment documents carefully before agreeing to bring in a co-joined agent — and should ensure the vendor is informed that the arrangement exists. Commission splits under conjunction do not add to the vendor’s cost; they come out of the total commission the listing agent receives. Making that clear avoids any perception of undisclosed benefit.

The REIQ’s standard conjunction form is a reasonable starting point, but it is a template, not a substitute for thinking carefully about the specific transaction. The parties to the agreement, the scope of authority granted to the co-joined agent, the payment trigger, and the termination provisions all deserve specific attention on each deal. Agents handling high-value properties, complex buyer structures, or off-market transactions in particular should ensure their conjunction documentation matches the complexity of the deal.

Handled correctly, conjunction sales expand buyer reach, close deals that would otherwise stall, and benefit vendors, buyers, and both agencies. The instrument that makes it work — and makes it enforceable — is the conjunction agreement itself.