Real Estate Agent Fees Explained: What Does Commission Include in Australia?
In Australia, a real estate agent's commission pays for the agency's work to sell your home, and nothing else. Marketing, auctioneer fees and legal or transaction costs are generally charged on top. Commission is paid to the agency, not to an individual agent, so one fee covers every agent in that office who works on your sale. It is usually paid at settlement, out of the sale proceeds.
Published 1 October 2026. This page is general information, not legal advice. Your agency agreement sets out exactly what you will pay, so read it carefully and ask a lawyer or conveyancer if you are unsure.
What commission includes
Commission covers the agent's professional service from appraisal to settlement. It typically includes:
- Appraising your property and advising on price and sale method
- Planning the sales strategy and managing the campaign
- Handling buyer enquiries and qualifying buyers
- Running open homes and private inspections
- Following up buyers and reporting feedback to you
- Negotiating with buyers to get the best price and terms
- Managing the contract exchange
- Coordinating with your solicitor or conveyancer through to settlement
For current commission rates, see the Australian Commission Guide.
What commission does not include
Most selling costs sit outside the commission. The table shows what is usually charged separately.
| Cost | Included in commission? | Notes |
|---|---|---|
| Marketing and advertising | No | Portal listings, photography, floor plans, signboards and print. Often payable even if the property does not sell. |
| Auctioneer's fee | Usually no | Normally a separate fee. It may be absorbed if the agent or the agency's director runs the auction. |
| Styling or staging | No | Charged by the stylist, sometimes arranged through the agent. |
| Conveyancing and legal fees | No | Paid to your solicitor or conveyancer. |
| Contract and vendor statement costs | No | For example, the Section 32 vendor statement in Victoria and its searches. |
| Building and pest reports | No | Required from the seller in the ACT; optional in most other states. |
| Mortgage discharge fees | No | Charged by your lender. |
| Repairs, cleaning or renovation | No | Any work done on the property itself. |
Ask every agent for a written list of all costs, not just the commission rate, so you can compare the full cost of selling.
You pay the agency, not the individual agent
Commission is an office fee, paid to the licensed agency that holds your agreement. If the agency puts a team of two, three or four agents on your property, the single commission covers all of them. You should not be charged a separate fee per agent. How the agency splits the commission internally is its own business, not an extra cost to you.
Agency agreement types and when commission is payable
The type of agreement you sign decides who can earn a commission and when. Exclusive agreements are the most common.
| Agreement | How many agencies | When commission is payable |
|---|---|---|
| Exclusive agency | One | If the property sells during the exclusive period, even if you or another agent find the buyer. |
| Sole agency | One | If the agent's buyer purchases. No commission if you find the buyer yourself without the agent's involvement. |
| Open (general) listing | Several at once | Only to the agency that is the "effective cause of sale". Nothing if you sell to your own buyer. |
| Conjunction | Two agencies under one agreement | One commission, shared between the two agencies. |
| Auction agency | One | An exclusive agreement for a property being sold by auction. |
Effective cause of sale
Under an open listing, an agency is paid only if it was the "effective cause of sale". The High Court set this test in LJ Hooker Ltd v W J Adams Estates Pty Ltd (1977), holding that the sale must be caused by more than a mere introduction.
In practice, a buyer simply walking through an open home is generally not enough. The agent usually needs to have done more, such as negotiating with that buyer or presenting an offer that you later accept. If your neighbour knocks on your door and buys your home directly, an agency on an open listing is not entitled to commission.
You can end up paying two commissions
If you sign exclusive agreements with two agencies at the same time, you may have to pay both commissions if the property sells while both exclusive periods are running. This is different from a conjunction agreement, where two agencies share one commission under a single agreement. In NSW, agency agreements must include a warning about when you might have to pay more than one agent. Before signing with a new agency, check whether any earlier exclusive agreement is still in force.
What happens when the exclusive period ends
An exclusive agreement runs for a fixed period, often 60 to 90 days. When it ends, many agreements roll into an open listing, so the agency can keep introducing buyers without exclusive rights.
Many agreements also include a continuing commission clause. It lets the agency claim commission if you sell, after the agreement ends, to a buyer it introduced during the agreement. Check how long that clause runs before you sign.
When commission is paid, and when a sale falls through
Commission is usually paid at settlement, out of the sale proceeds. In most agreements, if the property does not sell, you do not pay commission, although you may still owe marketing costs.
The position changes once contracts have exchanged. If you, the seller, withdraw from an exchanged contract, which generally needs the buyer's agreement, you may still have to pay the commission. In NSW, the agreement must include a warning if commission is payable even when the sale is not completed. Get legal advice before withdrawing from any exchanged contract.
Tiered, bonus and fixed-fee commission
Not every agent charges a single flat percentage. Common alternatives include:
- Sliding scale: a lower percentage applies as the sale price rises.
- Bonus or "kicker": a higher rate applies to the part of the price above an agreed target.
- Fixed fee: a set dollar amount, regardless of the sale price.
Agree any bonus or incentive structure at the start, before the campaign begins, and get it in writing. Be wary of an agent who asks you to change the commission late in a campaign, such as just before auction. By then the agent may have a much better idea of the likely price than you do.
This risk was highlighted in NSW in 2025 and 2026. NSW Fair Trading suspended the licence of Sydney agent Joshua Tesolin in August 2025, citing underquoting, dummy bidding, false documents and high-pressure sales tactics. A later show cause notice, reported by Real Estate Business, also alleged breaches of the rules of conduct relating to a "commission incentivising scheme". In April 2026 the NSW Government announced a 10-year ban for Mr Tesolin and his company.
Key differences by state
The basics are the same across Australia, but the rules on agreements differ. Check your state's rules before signing.
| State | Key rules |
|---|---|
| NSW | One business day cooling-off period after signing an agency agreement, ending at 5pm the next business day or Saturday. The agreement must warn you when you might pay more than one commission, or pay commission if the sale does not complete. |
| VIC | Exclusive sales authorities commonly run for 90 days and generally cannot be cancelled during that time unless the agent agrees. Agents must tell you commission and expenses are negotiable before you sign. |
| QLD | Exclusive and sole appointments for residential property run for a maximum of 90 days, with reappointment possible. For appointments of 60 days or more, either party can end it with 30 days' written notice once 60 days have passed. |
| SA | A sales agency agreement can run for a maximum of 90 days. It must say whether it is a sole agency and set out your rights to end it. |
| WA | The agent may be entitled to the fee if the property sells during the exclusive rights period, including privately or through another agent, or within a set period afterwards to a buyer they introduced. |
For Tasmania, the ACT and the Northern Territory, check the agreement terms with your agent and your state or territory consumer protection agency.
Frequently asked questions
Does real estate commission include marketing in Australia?
No. Marketing and advertising are almost always charged separately, and are often payable even if the property does not sell.
Is commission paid per agent?
No. Commission is paid to the agency. One fee covers every agent in that office who works on your sale.
Can I pay two commissions on one sale?
Yes, if you have signed exclusive agreements with two agencies at once and the property sells while both are in force. A conjunction agreement avoids this, because two agencies share one commission.
What does "effective cause of sale" mean?
It is the legal test for whether an agent has earned a commission, particularly under an open listing. The agent must have done more than simply introduce the buyer.
When do I pay the commission?
Usually at settlement, out of the sale proceeds.
Do I pay commission if my home does not sell?
Usually not, but check your agreement, and you may still owe marketing costs. If you withdraw after contracts have exchanged, commission may still be payable.
Is the auctioneer's fee included in commission?
Usually not. It is normally a separate fee, but may be absorbed if the agent or agency director is the auctioneer.
When should I agree a bonus commission?
At the start, before the campaign begins, and in writing. Be cautious of requests to change the commission late in the campaign.
Sources
- Agency agreements, NSW Government (NSW Fair Trading), updated 8 July 2026.
- Types of agreements with real estate agents, Queensland Law Handbook, updated 18 March 2022.
- Form R1: Sales agency agreements, Consumer and Business Services SA, January 2025.
- Selling a property, Consumer Protection WA, updated 25 June 2026.
- Authorities, rebates and commission, Consumer Affairs Victoria.
- Appointing an estate agent to sell your property, Tonkin Law, updated 24 September 2025.
- Reality Check: a real estate guide for buyers and sellers in the ACT, Access Canberra.
- When is a real estate agent lawfully entitled to commission?, Colin Biggers & Paisley, 10 May 2023, discussing LJ Hooker Ltd v W J Adams Estates Pty Ltd (1977) 138 CLR 52 and Freedom Development Group Pty Ltd v D'Ettorre Properties Pty Ltd [2023] NSWCA 81.
- Licences suspended for Joshua Tesolin and Tesolin Consulting Pty Ltd, NSW Fair Trading, 9 August 2025.
- Former top-selling agent Josh Tesolin faces further suspension, Real Estate Business, 9 December 2025.
- Ten-year ban for Joshua Tesolin and Tesolin Consulting Pty Ltd, NSW Government, 2 April 2026.
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