How to Start a Real Estate Business in Australia

Launching your own real estate agency is an exciting step. You’ll be building a brand, guiding clients through life’s biggest transactions and creating a business with real potential for growth.

But success in real estate takes more than market knowledge and a great network. You’ll also need the right business structure, licences, contracts and compliance processes from day one.

In this guide, we’ll walk through how to start a real estate business in Australia, the licences and legal requirements you’ll need to meet, and the essential documents to put in place before you open your doors.

Is Starting A Real Estate Agency Right For You?

Before you register anything, take time to test the idea. A simple business plan will help you scope your niche, startup costs and how you’ll win listings in a competitive market.

Key questions to answer include:

• What services will you offer first? Residential sales, property management, commercial, buyer’s advocacy, project marketing, or a mix?
• Which suburbs or property categories will you target and why?
• How will you acquire listings and landlords (personal network, digital marketing, referral partners)?
• What are your startup and month‑to‑month costs (premises, software, portals, marketing, wages, professional indemnity insurance, trust accounting)?
• What is your pricing model and revenue forecast (commission, management fees, ancillary services)?

This planning work doesn’t need to be lengthy, but it should be clear enough to guide your legal and operational setup.

Step-By-Step: How To Start A Real Estate Business

1) Choose Your Business Structure

Your structure affects tax, liability and how you bring on partners or investors. Common options are:

• Sole trader: Simple to start, but no separation between you and the business (you’re personally liable for debts and claims).
• Partnership: Two or more people in business together; partners are generally jointly liable.
• Company: A separate legal entity that offers limited liability and can be better for scaling, hiring and brand credibility.

Many agencies opt for a company for the liability protection and growth flexibility. If that’s your plan, consider a professional Company Set Up to get the structure right from day one.

If you have co‑founders, align on ownership and decision‑making early. A Shareholders Agreement sets out how the company will be run, what happens if someone leaves, and how profits are distributed. You’ll also want a clear Company Constitution that matches your growth plans.

2) Register Your Business Details

Next, apply for an ABN and, if operating a company, an ACN with ASIC. Register your business name if it’s different from your own name, and check trade mark availability for your brand and logo.

If your projected turnover is $75,000 or more, register for GST. Set up your business bank account, accounting software and (for agencies that will hold client funds) the required trust accounts per your state or territory rules.

3) Get Your Real Estate Licences Sorted

To lawfully operate an agency, you (or your licensee in charge) must hold the appropriate real estate agent licence for your state or territory. Sales and property managers generally require individual registrations or certificates of registration, supervised by a licensed agent. Licensing rules, experience requirements and CPD differ across jurisdictions, so check the specifics where you’ll trade and plan your staffing around those requirements.

You’ll likely need professional indemnity insurance and to set up an audited trust account if you’ll receive deposits or rent. Some states require signage approvals and notification to the regulator when opening or relocating an office.

4) Build Your Core Operations

Secure your office (or set up as a remote/digital agency if allowed by your regulator), choose your CRM and listing tools, and lock in membership with advertising portals and your state institute if desired.

Your website is often your first impression. Make sure it includes compliant website terms, a clear privacy policy and accurate, non‑misleading content. If you’re capturing leads, booking appraisals or running newsletters, you’ll be collecting personal information and must handle it in line with the Privacy Act.

5) Put The Right Contracts And Policies In Place

Strong contracts protect your commission, manage risk and keep client relationships on the right track. We’ve listed the essentials for a real estate business below (and how they fit together), but start by prioritising your client appointment forms, staff agreements and privacy documentation before you launch.

6) Hire And Train Your Team

If you’re employing assistants, property managers or sales agents, line up compliant employment contracts, fair work practices, safety policies and licence checks. You’ll also want clear procedures around prospecting, listing compliance, trust money handling, advertising approvals and data security.

7) Launch, Monitor And Improve

Once everything is in place, start building your pipeline. Track your compliance tasks (trust reconciliations, licence renewals, CPD), monitor conversion and average fees, and refine your systems. Good compliance is an asset-clients and referral partners value agencies that operate transparently and professionally.

Do I Need Any Specific Licences Or Permits?

Yes. Real estate is a licensed industry, and operating without the correct authority can lead to fines, disciplinary action and reputational damage.

Industry Licensing

Each state and territory regulates real estate agents, salespeople and property managers. Typically, running an agency requires a full real estate agent licence (and appointment of a licensee in charge), while other team members hold registrations and must be supervised. Requirements include education, fit and proper person checks, and ongoing CPD.

Trust Accounts

If you hold deposits or rent, you’ll need a regulated trust account. You must reconcile it regularly, follow strict handling rules and usually lodge annual audit reports with your regulator.

Insurance

Professional indemnity insurance is commonly required and makes commercial sense. Confirm the mandated minimum cover in your jurisdiction and whether your policy includes property management risks if you offer that service.

Local Approvals

If you’re opening a shopfront, check council requirements for signage, permitted use, parking and any fit‑out approvals. Even home‑based agencies may have rules for signage and client visits.

What Laws Do Real Estate Agencies Need To Follow?

Beyond licensing, several general laws apply to agencies. Your compliance framework should cover at least the following:

Australian Consumer Law (ACL)

You must avoid misleading or deceptive conduct, ensure advertising and pricing are accurate, and handle complaints fairly. This governs statements about property features, price guides, days‑on‑market claims, testimonials and promotions. If you need help setting up your compliance processes, a consumer law approach tailored to agencies can reduce risk early.

Underquoting And Property-Specific Rules

Some states have specific underquoting rules for residential sales (for example, how to set and advertise price guides and when to update them). There are also detailed requirements around agency appointments, disclosures, rebates, auction conduct and advertising. Build these rules into your listing and marketing checklists.

Privacy And Marketing

If you collect personal information (leads, open home attendees, appraisal requests or tenant applications), you’ll need a compliant Privacy Policy and internal processes for secure handling, access and correction requests, and marketing consent. Ensure your email and SMS campaigns comply with spam laws and that you only use and share client data for the purposes you’ve disclosed.

Website And Digital Compliance

Your website should include clear Website Terms and Conditions, accurate content, and processes to promptly remove or update listings once sold or leased. If you record phone calls or CCTV in your office, check your state’s surveillance laws and notify staff and visitors where required.

Employment And Workplace

Employers must comply with the Fair Work framework (correct award classification, minimum wages, leave, super, and record‑keeping), health and safety obligations and anti‑discrimination laws. Put in place a compliant Employment Contract for each employee and keep policies up to date, including procedures for commissions, reimbursements and use of company vehicles or devices.

Record-Keeping And Audits

Maintain complete records for trust transactions, listings, advertising approvals, rebates, authorities, inspections and condition reports. Regulators regularly audit agencies-good record‑keeping is your best defence.

What Legal Documents Will I Need?

Here’s a practical checklist of key contracts and policies that most real estate businesses should consider:

• Agency Appointment/Authority Forms: Your core client contract for sales and property management. It sets commission, authority period, disclosures, marketing costs, and when you’re entitled to your fee.
• Client Terms (Sales And Property Management): Clear terms around services, exclusivity, marketing, complaints, privacy and termination. This can be built into your authority forms and tailored to your process.
• Privacy Policy: Explains how you collect, use, store and disclose personal information from vendors, buyers, landlords and tenants. Link it in emails and on your website using a compliant Privacy Policy.
• Website Terms And Conditions: Rules for using your site, IP ownership, disclaimers and liability limits. These can be published easily via Website Terms and Conditions.
• Employment Contracts: Set role expectations, commission structures, restraint and confidentiality terms for staff. Always issue a written Employment Contract that matches the role and award.
• Contractor Agreement: If you engage contractors (e.g. photographers, copywriters), use a written agreement to set deliverables, IP ownership and confidentiality.
• Referral Agreement: Formalise referral relationships with mortgage brokers, conveyancers or trades using a simple Referral Agreement that complies with disclosure rules.
• Non‑Disclosure Agreement (NDA): Protects your data, marketing strategies and off‑market opportunities when discussing them with third parties. A straightforward Non-Disclosure Agreement is useful before sharing sensitive information.
• Shareholders Agreement: If you have co‑founders or investors, a Shareholders Agreement clarifies ownership, board control, dividends, exits and dispute pathways.
• Company Constitution: If you operate through a company, ensure your Company Constitution aligns with how you want to run the agency and handle share issues or transfers.
• Policies And Procedures: Internal policies for trust money, privacy, data security, advertising approvals, open home safety, complaint handling and incident reporting.

You may not need every document above immediately, but most agencies will need several of them before launch. Getting your core contracts and policies tailored to your business helps you protect commission, manage risk and present professionally to clients.

Should I Franchise Or Buy An Existing Agency?

There are two common alternatives to starting from scratch:

Buying A Franchise

A franchise can offer brand recognition, playbooks, tech and training-but it also comes with franchise fees, marketing levies and brand rules. Carefully review the franchise agreement, disclosure documents and territory rules, and model the real earnings after fees and obligations. You’ll still need licensing, a compliant local operation and your own employment and privacy documents.

Buying An Existing Agency Or Rent Roll

Purchasing a business or rent roll can deliver immediate cash flow and systems. Conduct legal and financial due diligence on client authorities, trust account health, staff entitlements, software, and any compliance history with the regulator. Ensure a robust sale agreement covers warranties, restraints, data transfer and post‑completion support.

Whichever path you choose, a structured legal process around due diligence and contracts will reduce risk and speed up integration.

Key Takeaways

• Starting a real estate business in Australia requires the right structure, licences and day‑to‑day compliance processes from day one.
• Most agencies benefit from a company structure for liability protection, with a clear Shareholders Agreement and Company Constitution if there are co‑founders.
• Real estate licensing, trust accounts, professional indemnity insurance and CPD are mandatory in most states-build them into your setup timeline.
• Consumer law, privacy, advertising rules and fair work laws all apply to agencies; align your marketing, website and employment practices accordingly.
• Core documents like agency authorities, Privacy Policy, Website Terms and Conditions, Employment Contracts and referral or contractor agreements help protect revenue and reduce disputes.
• If you’re considering a franchise or acquisition, thorough due diligence and tailored contracts are essential to safeguard your investment.

If you would like a consultation on starting a real estate business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.