The Estate Agents (Professional Conduct) Regulations 2018
The Estate Agents (Professional Conduct) Regulations 2018 set out the standard of conduct
expected of agents and agents' representatives in their day-to-day dealings with clients
(sellers and landlords) and consumers (buyers and tenants).
They are in addition to the obligations set out under legislation such as the:
o Estate Agents Act 1980
o Sale of Land Act 1962
o Residential Tenancies Act 1997
o Retail Leases Act 2003
o Australian Consumer Law and Fair Trading Act 2012.
In summary, estate agents and agents’ representatives must:
1. Know the relevant laws
o An agent must have a knowledge and understanding of the Act and the regulations
under the Act and other relevant laws, (including laws relating to tenancy, fair trading,
trade practices, anti-discrimination and privacy) as may be necessary to enable the
agent to exercise his or her functions as agent lawfully.
2. Follow their client’s lawful instructions, except if it would not be good estate agency
practice.
o An agent must comply with the lawful obligations arising as an agent.
3. Act fairly, honestly, in good faith and to the best of their knowledge and ability at all
times.
o An agent must act honestly, fairly, and professionally with all parties in a transaction.
o An agent must not mislead or deceive any parties in negotiations or a transaction.
4. Act in their client’s best interests, except if it would be unlawful, unreasonable,
improper or against their client’s instructions
o An agent must act in the client’s best interest at all times unless it would be contrary
to the Act or regulations under the Act or otherwise unlawful to do so.
5. Disclose to their client any personal or commercial relationship they have with a
supplier, if they recommend that supplier
o An agent must not, at any time, use or disclose any confidential information obtained
while acting on behalf of a client or dealing with a customer, unless:
o the client or customer authorises disclosure, or
o the agent is permitted or compelled by law to disclose.
6. Exercise skill, care and diligence in performing their functions
o An agent must exercise reasonable skill, care and diligence.
7. Complete all work for a client as soon as reasonably possible
o An agent must act in the client’s best interest at all times unless it would be contrary
to the Act or regulations under the Act or otherwise unlawful to do so.
8. Be timely and courteous in all dealings when carrying out their duties
o Before or at the time of entering into an agency agreement under which the agent will
act for the owner of residential property or rural land in relation to the entering into
a lease of the residential property or rural land, the agent must prepare for inclusions
in the agency agreement written confirmation of the extent of the agent’s authority
to undertake the following duties in connection with the entering into of the lease and
any limitations on the agents authority to undertake those duties
a) Obtaining references from prospective tenants, arranging inspection of the
property by prospective tenants and choosing a tenant.
b) Entering into and signing a tenancy agreement
c) Undertaking an initial inspection of the property
d) Collecting initial rent payment
e) Receiving and distributing rental bond money
f) Advertising the property for letting
o An agent must take all responsible steps to ensure that any final inspection of the
property, on vacation of the property, is conducted in the presence of the tenant
(unless otherwise authorized by the tenant). Note: “Reasonable steps” by an agent
would comprise contacting the tenant to discuss suitable times for the inspection
arranging to meet at a particular time and place and proceeding to meet the tenant
at the arranged time and place.
9. Immediately inform a seller if, contrary to the contract, a deposit is not received for a
sale.
o An agent must not act as an agent or represent him or herself as acting as an agent on
behalf of a person without written authority.
10. Promptly notify a landlord of any breach of a tenancy agreement, unless instructed
otherwise by a landlord in writing.
o An agent must not act as an agent or represent him or herself as acting as an agent on
behalf of a person without written authority.
11. Make all reasonable enquiries to ascertain information relevant to a transaction
o An agent must ascertain all relevant information on behalf of their client, to allow
informed & educated decisions to be made, relevant to a transaction.
12. Provide all verbal and written offers to a client, unless instructed otherwise by a client
in writing
o Before or at the end of entering into an agency agreement, under which the agent will
provide property management services in respect of the leasing or residential
property or rural land, the agent must prepare for inclusions in the agency agreement,
written confirmation of the extent of the agent’s authority to undertake the following
duties in connection with the management of the property and any limitations on the
agents authority to undertake those duties
a) obtaining references from prospective tenants, arranging inspections of the
property by prospective tenants and choosing a tenant.
b) Entering into and signing a tenancy agreement (specifying the term for which the
property may be let)
c) Undertaking inspections of the property.
d) Effecting repairs to and maintaining the property or engaging tradespersons to do
so and eliminations on expenditure that may be incurred by the agent without
obtaining the principals approval.
e) Paying disbursements and expenses incurred in connection with the agents
management of the property.
f) Collecting rent
g) Receiving, claiming and disbursing rental bond money
h) Serving notices for breach of a tenancy agreement or to terminate the tenancy
agreement.
i) Undertaking the necessary steps to obtain vacate possession and recover any
money owing to the principal in relation to the tenancy of the property.
j) Representing the principal in any tribunal or court proceedings in respect of the
tenancy of the property.
k) Paying accounts for amounts owing in relation to the property (for example, water,
water rates and charges, council rates, maintenance expenses and owners
corporation levies)
l) Advertising the property for letting or re-letting
m) Reviewing the rents at the end of the tenancy
13. Inform the person making an offer that it will not be submitted to the principal, if
principal’s instructions to the agent are to not inform them of offers
o The agent must, unless the principal has instructed to the contrary in writing, inform
the principal of all offers of purchase as soon as practicable after receiving the offer
up until exchange of contracts has taken place.
o If the agent is not going to inform the principal of an offer, the agent must inform
the person who made the offer that the offer will not be submitted to the principal.
o The agent may inform the principal of an offer orally or in writing and must identify
the party by whom the offer is made. If the principal is informed orally, the agent
must confirm the information in writing.
This clause does not apply to bids made in the course of an auction.
14. Promptly respond to a tenant’s request for maintenance and repairs and notify the
tenant of a landlord’s response
o An agent managing a rental property must promptly respond to and, subject to the
instructions of the owner, attend to all requests by a tenant, for maintenance of, or
repairs to, the property.
15. Inform the landlord if the landlord’s failure to carry out maintenance or repairs would
constitute a breach of the agreement or the Residential Tenancies Act 1997
o If the owner has instructed that a required repair not-be carried out, the agent must
inform the owner if the owner’s failure to carry out the repair would constitute a
breach of any tenancy agreement in force in relation to the property.
16. When acting as a buyer’s agent keep the purchaser informed of each stage of the
negotiations
o An agent acting as a buyer’s agent for a person must keep the person informed of
each stage of the negotiation of a purchase price as instructed by the person.
This clause does not apply to bids made during an auction.
17. Provide advice about the agency’s dispute resolution procedure before or as soon as
possible after a tenancy agreement is signed
o An agent who submits or tenders a document to any person for signature, or who
causes or permits a document to be submitted or tendered to any person for
signature, must immediately after the person has signed the document give a copy of
the document to the person.
18. Minimise disputes with clients
o An agent must not engage in behaviours that may contribute to the growth of,
inflicting, or cause of disputes with clients.
o An agent must uphold their duties and actively minimise/mitigate any disputes from
arising.
19. Advise clients and consumers about the agency’ complaint and dispute resolution
procedures.
An agent has a duty of care to inform clients of their Agency’s complaint handling & dispute
resolution processes.
In summary, estate agents and agents’ representatives must not:
Ø Use or disclose confidential information they obtain while acting for a client, unless
authorised by the client or required by law to do so.
Ø Induce a client to enter into an agency authority that may lead to commission being
paid to more than one estate agent, without first giving them written advice of the
possible consequences.
Ø Put their interests in conflict with those of their client by acting for another person.
Ø Accept commission from both a client and a consumer for the same transaction.
Ø Induce a person to breach any contract.
Ø Mislead a tenant, a prospective purchaser or a purchaser about a landlord's or
seller's instructions.
Ø Engage in conduct that is unprofessional or detrimental to the estate agency
industry.
Ø Convey bids made after a property has been knocked down at a public auction
unless a contract is not signed.
For information on the penalties for breaches, view Penalties - Estate agents:
https://www.consumer.vic.gov.au/licensing-and-registration/estateagents/penalties