Real Estate And Business Agents Act: Essential Australian Compliance Guide

Starting or growing a real estate agency or business broking firm can be an exciting move. It’s a chance to build a strong brand, serve your clients, and create a sustainable business. But success in this industry depends on more than great sales skills - you’ll need to understand (and follow) the laws that govern how agents operate in Australia.

In Western Australia, the Real Estate and Business Agents Act 1978 (WA) sets the rules for licensing, trust money, and professional conduct. Other states and territories have their own legislation covering similar areas. Getting across these requirements early will help you protect your licence, your clients, and your reputation.

In this guide, we’ll walk through what the WA Act covers (and how it compares across Australia), who needs to comply, the key steps to set up your agency correctly, the major laws you’ll need to follow, and the essential legal documents that keep you compliant day to day.

What Is The Real Estate And Business Agents Act?

The Real Estate and Business Agents Act 1978 (WA) (often referred to as the REBA Act) is the core law regulating real estate and business agents in Western Australia. It sets standards for licensing, agency conduct, supervision, trust accounts, and consumer protection.

Under the WA framework, agencies must designate a “person in bona fide control” (a licensed and suitably experienced individual who is responsible for supervising the agency and ensuring compliance). You may also see references to triennial certificates, audits, and approved trust accounts - all of which are features of the WA scheme.

Other jurisdictions use different terminology and legislation. For example, Tasmania regulates agents under the Property Agents and Land Transactions Act 2016 (Tas) and the Property Agents and Land Transactions Regulations 2017 (Tas). While the details differ, the big-picture themes are consistent nationwide: fit and proper person tests, conduct standards, trust accounting, and consumer protections.

Who Must Comply (And What Does It Cover)?

If you carry on business in the sale, purchase, leasing or management of real property or businesses, you’re likely captured by the relevant state or territory regime. This includes:

• Licensed real estate agents and agency owners
• Business brokers involved in selling businesses
• Property managers handling residential or commercial rentals
• Agency staff who list, market, sell, lease or manage property or businesses

Importantly, compliance starts before you take on your first client. You’ll need to get your structure and registrations in order, apply for the right licence, put appropriate supervision in place (such as a person in bona fide control in WA), and set up trust accounts correctly if you handle trust money.

Across Australia, the laws typically cover the following areas:

• Licensing and registration of individuals and entities
• Appointment of a responsible supervisor (title varies by state)
• Standards of professional conduct and disclosure duties
• Trust account operation, record-keeping and auditing
• Complaint handling, disciplinary action and penalties

Step-By-Step: How To Set Up Your Agency Or Broking Firm

1) Map Your Business Plan

Clarify your niche (residential sales, commercial property, property management, business broking, or a combination) and your operating model (independent, boutique, multi-office). Plan your budget, pricing, staffing, and growth goals. This planning makes licensing and compliance steps smoother because you’ll know exactly how you’ll operate from day one.

2) Choose A Structure And Register

Decide whether to operate as a sole trader, partnership or company. Each option has different setup, tax and risk implications.

• Sole Trader: Simple and low cost to start, but no separation between your personal and business liability.
• Partnership: Useful where two or more people run the business together; partners share profits and responsibility for debts.
• Company (Pty Ltd): Separate legal entity with limited liability, generally better for growth and risk management.

You’ll also need an ABN and - if your GST turnover meets or is expected to meet the registration threshold - GST registration. This is general information only; it’s wise to check your specific tax position with your accountant before you register.

If you’re setting up with co-founders, put your ownership and decision-making rules in writing early through a Shareholders Agreement.

3) Obtain The Right Licence(s)

Apply for your individual and/or entity licence under the relevant state or territory legislation. In WA, this involves the licensing framework under the REBA Act (which can include qualifications, experience requirements and character checks), plus appointing a person in bona fide control for the agency. Other jurisdictions have comparable requirements, though titles and processes will differ.

Timing matters. Some applications take several weeks, so plan your launch date with that in mind.

4) Set Up Trust Accounts (If You Handle Trust Money)

If you hold money on behalf of clients - sale deposits, rent, bonds or marketing funds - you’ll likely need a trust account set up with an approved financial institution in your jurisdiction. The trust account rules, audit obligations and reporting timelines are set by the state or territory law you operate under. For example, WA’s trust accounting requirements sit within the REBA Act and supporting regulations, while Tasmania handles trust accounts under its own legislation and regulations.

Trust compliance is an area regulators focus on closely. Establish written procedures, segregation of duties, reconciliations and regular internal checks from day one.

5) Put The Right Contracts And Policies In Place

Before your first listing, get your core agreements and policies ready. Clear, tailored documents help you comply with the law, set expectations with clients and suppliers, and minimise disputes (more on the essentials below).

6) Build A Compliance Culture

Train your team on conduct standards, supervision requirements and complaint handling. Make sure your “control” function (for example, the person in bona fide control in WA) has the visibility, authority and documentation they need to do their job effectively.

What Laws Do Agents Need To Follow In Australia?

Real estate and business broking is regulated by more than just the licensing statute in your state. Here are the major areas that affect your day-to-day operations.

Licensing, Supervision And Conduct Standards

Your licensing law sets how you obtain and maintain your licence, how you supervise staff, and how you must act towards clients and consumers. Expect obligations to:

• Act honestly, fairly and professionally
• Disclose relevant interests and material facts to clients and buyers/tenants
• Keep proper records, including agency agreements and transaction files
• Supervise and train staff adequately

Breach the rules and you risk fines, disciplinary action, suspension or cancellation of your licence, and reputational damage.

Trust Accounting

If you handle trust money, your jurisdiction’s legislation will prescribe how to open, operate and audit trust accounts. This usually includes:

• Opening an approved trust account separate from general business funds
• Recording and reconciling all trust transactions promptly and accurately
• Arranging audits in the form and frequency required by your regulator
• Notifying the regulator of discrepancies or suspected breaches

Each state and territory has distinct technical requirements - make sure your procedures reflect the specific law that applies where you operate.

Australian Consumer Law (ACL)

The Australian Consumer Law applies to your advertising, negotiations and services. Common risk areas include underquoting, price representations, and statements about a property or business’ features or potential.

You must not engage in misleading or deceptive conduct, and your agency services come with consumer guarantees (for example, that services will be provided with due care and skill). Keep your marketing factual, keep file notes of key conversations, and train staff on acceptable claims.

Employment And Workplace Law

If you hire staff, you’ll need compliant agreements, correct pay and entitlements, and safe systems of work. That typically means using a clear Employment Contract, following minimum entitlements, and having policies to address bullying, discrimination and harassment. Supervision and training obligations under your licensing law often dovetail with your workplace responsibilities.

Privacy And Data Protection

Agencies collect a lot of personal information - enquiries, applications, ID checks, marketing databases, and inspection records. In most cases you’ll need a public-facing Privacy Policy, processes for handling access and correction requests, and a plan for managing data breaches. Make sure your forms and website explain how you collect and use personal information, and store it securely.

Intellectual Property And Your Brand

Your name, logo and content are valuable assets. Consider registering your trade mark to protect your brand nationally, and make sure you have the rights to use photographs, floorplans and copy supplied by staff or third parties. If you run a site where clients can interact, add clear Website Terms and Conditions to set rules for use and limit your liability where appropriate.

What Legal Documents Will Your Agency Need?

The right paperwork helps you stay compliant, reduce disputes, and deliver a consistent client experience. Common documents include:

• Agency Agreement: Sets the scope of your appointment (exclusive or open), fees and commissions, disclosure obligations, marketing authority, and when your commissions are earned and payable.
• Sales Contract (Property Or Business): In many cases this is prepared by the parties’ lawyers or conveyancers, but as an agent you should understand the structure, key conditions and disclosure obligations that affect your role.
• Property Management Agreement: Clearly outlines fee structures, authority to act, repair limits, and how you handle trust monies.
• Employment Agreement And Workplace Policies: A solid Employment Contract with policies for conduct, WHS, privacy and use of devices keeps expectations clear and supports compliance.
• Privacy Policy: A public Privacy Policy explains how you collect, store and use personal information across your website, CRM and forms.
• Website Terms And Conditions: If clients can book appraisals, submit forms or browse listings on your site, Website Terms and Conditions set acceptable use rules and limit risk.
• Non-Disclosure Agreement (NDA): Useful when discussing potential agency mergers, sharing confidential marketing data with suppliers, or broking the sale of a business with sensitive information - an NDA helps protect confidentiality.
• Internal Trust Procedures: Written procedures for receipting, reconciliation, approvals, and breach reporting support compliance during audits.
• Co-Founder Documents (If Applicable): If you’re building the agency with others, a Shareholders Agreement sets out ownership, decision-making and exit rules.

Every agency is different. The best approach is to tailor your suite so it fits your model, your jurisdiction, and your risk profile - and to keep it updated as the law or your operations change.

Buying Or Selling An Agency: Due Diligence And Contracts

Acquiring an existing rent roll or brokerage, or selling the firm you’ve built, involves specialised contracts and checks. Plan for:

• Business Sale Agreement: A structured Business Sale Agreement covers the price, adjustments, restraint of trade, transfer of IP, assignment of leases, and handling of trust balances and client consents.
• Due Diligence: Review licensing status, any disciplinary history, trust account records and reconciliations, rent roll agreements and authority forms, staff contracts and entitlements, and key supplier arrangements.
• Transition Plan: Communications to clients and suppliers, transfer of domain names and social handles, system access and data migration, and staff onboarding or redundancies where needed.

Where a sale includes a rent roll, the deal timeline often needs to accommodate regulator notifications or audits. Build that into your completion schedule early.

Key Takeaways

• The Real Estate and Business Agents Act 1978 (WA) regulates licensing, supervision, conduct and trust money in WA; other states and territories have comparable laws with their own terminology and processes.
• Compliance starts before launch: choose a structure, register the business, obtain the right licences, appoint the correct supervising role (such as a person in bona fide control in WA), and set up trust accounts if you handle trust money.
• Core legal obligations go beyond licensing - expect duties under the Australian Consumer Law, employment law, privacy rules, intellectual property, and strict trust accounting requirements.
• Put clear, tailored documents in place, including Agency Agreements, employment terms, a Privacy Policy, Website Terms and Conditions, NDAs, and internal trust procedures.
• If you plan to buy or sell an agency or rent roll, get a robust Business Sale Agreement and conduct thorough due diligence on licensing, trust records and client authorities.
• Build a culture of compliance with training, supervision, accurate records and regular reviews - it protects your clients, your licence and your brand.

If you’d like a consultation on starting or running a real estate agency or business broking firm, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.