7 Critical Questions to Ask a Buyers Agent Before Signing an Agreement

The Growing Need for Advocate Due Diligence

As the Australian property market has become increasingly competitive, the number of individuals marketing themselves as “property investment advisers” or “buyers advocates” has surged. Because property advisory is not governed under a single unified federal regulatory framework like financial planning (AFSL), investors must undertake strict due diligence before granting representation rights.

The 7 Critical Interview Questions

1. Are you individually licensed as a real estate agent in this state?

A legitimate buyers advocate must hold an individual Class 1 or Class 2 Real Estate Agent Licence (or equivalent state credential) in the state where the property is located. Operating under a “certificate of registration” requires active oversight by a licensed principal, and interstate agencies cannot legally operate without local state compliance.

2. Do you receive developer rebates, commissions, or referral fees from third parties?

This is the most critical question. “Two-tier” property marketers frequently pose as buyers advocates, offering “free” or heavily discounted buying services to purchasers while collecting $20,000 to $60,000 in secret developer commissions for selling off-the-plan townhouses or house-and-land packages. A genuine buyers agent is compensated exclusively by the purchaser.

3. How many active buyers are you currently servicing in my target budget?

If an advocate is currently representing five different clients with an identical brief ($800,000 to $900,000 family homes in Brisbane’s northern suburbs), an unavoidable conflict occurs when an outstanding property surfaces. Ask how the agency prioritises competing briefs.

4. Can you provide a verifiable transaction ledger of your last 10 acquisitions?

General market commentary does not prove buying skill. Request a list of recent purchases including address, settled purchase price, independent valuation comparison, and estimated current market value or rental yield.

5. What is your precise definition of an “off-market” listing?

Distinguish between genuine pre-market properties (where vendors are preparing contracts but haven’t launched publicly) and stale agency inventory (properties that failed at auction or were rejected by the open market due to pricing or structural flaws).

6. What are the specific terms regarding contract termination?

Review the agreement’s termination provisions. Does the agreement lock you in for 6 months with heavy cancellation penalties, or does it allow mutual termination with 14 or 30 days written notice if communication breaks down?

7. Who conducts the physical inspections: you or a junior junior researcher?

In growing agencies, senior directors handle initial sales consultations while inexperienced junior staff or virtual assistants conduct actual property inspections and agent negotiations. Ensure the experienced advocate is personally inspecting every asset.