Industry association urges tighter regulation and mentoring programs
The Real Estate Buyers Agents Association of Australia (REBAA) has warned that a growing number of underqualified and inexperienced buyers’ agents could put property buyers at financial risk, calling for more oversight and better industry standards.
REBAA president Melinda Jennison (pictured above) said the low entry requirements and lack of formal training have made it easier for new agents to enter the profession without proper skills or knowledge.
“The rapid growth of the buyers’ agent industry, while exciting, has also brought significant challenges,” Jennison said. “This includes a lack of regulatory oversight and the prevalence of inexperienced operators who may have completed their real estate licence but know very little about buying property.”
She added that the combination of a complex housing market and poor representation may lead to buyers paying too much or facing legal issues due to receiving poor advice.
REBAA has also pointed to inconsistencies in licensing standards across states and territories as a key part of the problem. Jennison said mutual licence recognition allows some agents to qualify in jurisdictions with fewer requirements and work interstate with little understanding of local laws or market trends.
“Imagine hiring someone for a $1 million purchase only to discover they lack knowledge of local laws or market dynamics,” she said. “This is happening every day, and buyers are unaware.”
According to Jennison, this loophole is leading to a rise in agents operating in unfamiliar markets with minimal preparation. “Operators are cutting corners by getting licensed in states with fewer requirements and entering competitive markets without proper training,” she said. “It’s a ticking time bomb for consumer trust and financial safety.”
REBAA believes that a buyers’ agent mentoring program – designed to provide structured learning and ongoing support, ensuring that new buyers’ agents develop the skills they need to succeed – is long overdue.
Concerns have also been echoed by sales agents, who say that inexperienced buyers’ agents can create delays and confusion during transactions.
John Cunningham, managing director of Sydney-based Cunninghams Real Estate, cited a case involving a new agency that struggled to complete deals and eventually shut down.
“They hung around open homes and pounced on buyers, but they simply did not know what to do and could never get to the point of getting any sales done via our firm as they kept losing out due to inaction or absence,” Cunningham said. “Many buyers lost up-front fees before the agency folded within 18 months.”
Tristan Rowland, principal at Stone Real Estate Aspley in Brisbane, said many clients have little understanding of what sets experienced buyers’ agents apart from new or untrained ones.
“How do you know what a buyer’s agent has inspected or whom they’ve contacted?” he said. “If they’re not presenting properties regularly, they’re not doing their job.” He also criticised the short training period required to become licensed, noting it’s shorter than that of a barista course.
To help buyers make informed choices, REBAA advises clients to ask three questions: whether the agent is licensed in each state where they operate, if they hold professional indemnity insurance, and whether they are a REBAA member who follows professional standards.
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