Property buyers at risk from surge in inexperienced agents

Industry body REBAA has warned of growing dangers to consumers from untrained buyers’ agents entering the property market.

The Real Estate Buyers Agents Association of Australia has raised concerns about an influx of poorly qualified representatives who may lack essential knowledge about property transactions.

Sales agents have also expressed alarm over the issue, citing instances where inexperienced buyers’ agents have failed clients.

REBAA President Melinda Jennison attributed the problem to minimal entry requirements and insufficient specialist education in the industry.

“The rapid growth of the buyers’ agent industry, while exciting, has also brought significant challenges,” Ms 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.”

Property purchasers face potentially serious consequences when represented by unqualified agents, according to the industry association.

“Unfortunately, this can result in overpaying for properties or facing legal issues due to improper advice,” she added.

Ms Jennison identified varying qualification requirements across states as a key factor exacerbating the problem, particularly when combined with mutual licence recognition.

“Mutual licence recognition allows agents to obtain licences in states with lower regulatory barriers and then operate in unfamiliar states,” she said.

“Imagine hiring someone for a $1 million purchase only to discover they lack knowledge of local laws or market dynamics? This is happening every day, and buyers are unaware.”

The association described this practice as creating dangerous gaps in consumer protection.

“Operators are cutting corners by getting licensed in states with fewer requirements and entering competitive markets without proper training. It’s a ticking time bomb for consumer trust and financial safety,” she said.

John Cunningham, Managing Director of Cunninghams Real Estate in Sydney, shared a cautionary tale about inexperienced operators.

“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. Many buyers lost up-front fees before the agency folded within 18 months,” Mr Cunningham said.

Brisbane agent Tristan Rowland from Stone Real Estate Aspley highlighted the difficulty consumers face in distinguishing between qualified and unqualified representatives.

“How do you know what a buyer’s agent has inspected or whom they’ve contacted? If they’re not presenting properties regularly, they’re not doing their job,” Mr Rowland said.

Mr Rowland pointed to inadequate training requirements, noting that buyers’ agents can qualify through courses shorter than those required for baristas.

REBAA has urged consumers to thoroughly vet potential buyers’ agents by confirming they hold proper state licences, carry professional indemnity insurance, and maintain membership with professional bodies that uphold ethical standards.