Lot 1 of 6 · The role
What a buyer’s agent does
A buyer’s agent is a real estate agent who acts for the person buying, not the person selling. In NSW they must be licensed, or registered and working under a licensed agent, and the law sets out what they owe the buyer, from declaring any conflict of interest to never going past the agreed price without the buyer’s written authority.
Who they act for
NSW Fair Trading describes a buyer’s agent simply: a real estate agent who acts for the buyer. A sale through an agent already has one agent in it, the agent selling the property, and Fair Trading reminds buyers that the selling agent is working for the seller, not for them. A buyer’s agent is the other side of that line.
To act as one, a person must hold a real estate agent’s licence, or hold a certificate of registration while a licensed real estate agent directs their work. Both can be checked on the NSW licence check, which shows the licence or certificate category, its number, its dates and any disciplinary action taken since 1 September 2003, when the Property and Stock Agents Act 2002 began.
Selling agent and buyer’s agent, side by side
| Question | The selling agent | A buyer’s agent |
|---|---|---|
| Works for | The seller. | The buyer. |
| On price | May not quote a buyer less than the estimated selling price in the agency agreement, and need not give the reserve or the estimate at all. | Researches properties to work out a fair price, and negotiates on the buyer’s behalf. |
| Offers | Must pass any further offers to the seller until contracts are exchanged, unless the seller has instructed otherwise in writing. | Must keep the buyer informed of each stage of negotiation, and promptly tell the buyer if a later offer is made on the property. |
| At auction | Registers bidders and keeps the Bidders Record private. | Can bid for the buyer, and must not go past the agreed price without the buyer’s express written authority. |
| Agreement | An agency agreement with the seller, including the estimated selling price. | A buyers’ agency agreement setting out the services and terms; the required terms are in schedules 5 to 12 of the Property and Stock Agents Regulation 2022. |
The work itself
Fair Trading lists what a buyer’s agent can do, and says the buyer decides what level of service they want. The list runs in roughly the order a purchase does:
- find, assess and shortlist properties that meet the buyer’s criteria
- research properties to work out a fair price
- inspect a property
- evaluate and negotiate a price on the buyer’s behalf
- bid at auction
- follow up until the sale is finalised, dealing with the other parties along the way
- reach databases and information the public does not readily see, including more properties sold off market.
At an auction, the role has its own paperwork. When a licensed agent registers to bid for a buyer, their licence number is written into the Bidders Record, and they may show their agency authority in place of the letter of authority other proxy bidders need. The auction lot walks through registration in full.
What the law asks of them
Buyer’s agents follow rules of conduct in Schedule 1 and Schedule 2, Part 1 of the Property and Stock Agents Regulation 2022, as well as the Property and Stock Agents Act 2002, and a breach can be penalised. Two of the duties Fair Trading spells out for them bear directly on buying; the full list is on Fair Trading’s rules of conduct page.
- Keep the buyer informed of each stage of negotiating the price, and obtain the best possible purchase price for them.
- Not exceed the agreed price, in negotiation or at auction, without the buyer’s express written authority.
Two of the 21 core rules that apply to every agent sit underneath all of this: act in the client’s best interests at all times, and declare any personal, family or commercial relationship with a service provider before referring a client to them. The rules of conduct carry court penalties of up to $110,000 for a corporation and $22,000 for anyone else, as at October 2026. (NSW Fair Trading, rules of conduct)
The questions Fair Trading puts to buyers
NSW Fair Trading offers a set of questions to consider when choosing a buyer’s agent. Most of them are set out below as a list, not as a view on any agent.
- Do they hold a real estate agent’s licence, and since when?
- In this purchase, is the buyer the only party they represent?
- How much experience do they have researching property and negotiating price?
- How much do they charge, and does anything fall due if no suitable property turns up?
- What are the terms of the agreement, and how can it be ended?
- How often will they give feedback?
- Do they have the professional indemnity insurance the law requires?
- Do they receive rebates, discounts, commissions or other benefits from third parties they may refer the buyer to?
On cost, Fair Trading says only that buyer’s agents may charge a fixed fee or a percentage of the purchase price, and that the amount is negotiable because the law does not set it. Its advice on the agreement itself is not to sign before understanding what it means for costs and for what the agent is committing to do.
If a dispute with an agent cannot be resolved, a complaint can be lodged with NSW Fair Trading, and a matter Fair Trading cannot settle can go to the NSW Civil and Administrative Tribunal (NCAT).