Queensland to deregulate agent fees
Queensland vendors in competitive residential sales markets could negotiate lower estate agent selling fees after the Queensland Government’s move to deregulate selling commission rates.
Agents currently get 5% for the first $18,000 on a property sale and 2.5% on the balance above that.
Under the proposed new commission structure, home sellers and real-estate agents will negotiate the selling fee.
The decision was announced by the Queensland Deputy Premier Paul Lucas, who argued the deregulation process would bring Queensland into line with all the other states and territories.
"The problem with the current fixed commission system is it does not take into account the circumstances such as the saleability of a property or the amount of effort required for it ultimately to be sold,” Lucas says.
"It will not be introduced at the expense of consumers.”
Real Estate Institute of Queensland chairwoman Pamela Bennett has suggested she believes the status quo commission would remain for the majority of properties, “but if they're remote or more service is needed to sell, then commissions may be negotiated up".
"While there may be perceived concerns that deregulation may lead to increases in commissions, the experience in other jurisdictions shows that this is not the case, and QCAT (Queensland Civil and Administrative Tribunal) is there as an added protection,” Lucas says.
"Deregulating commissions for the purchase or sale of residential property is expected to lead to increased competition in the industry, which will benefit both consumers and agents.
“Any changes will have strong consumer protections, including strong disclosure, and QCAT will be given the jurisdiction to deal with situations where it is alleged by a seller that a commission is harsh and unconscionable."
Lucas says over the years there have been numerous national and state reviews recommending the deregulation of real estate commissions.
“It is also strongly supported by the real-estate industry,'" he says.
Bennett envisages commissions linked more to the service offered, not the property price.
"It could be as much or more effort to sell a $300,000 property as a $700,000 property, and the agent should be able to charge for the service provided," Bennett told AAP.
Lucas says QCAT would be able to set aside the commission or vary the terms of any relevant commission contract and substitute a “fair” commission.
"QCAT will be an accessible and affordable option where parties can represent themselves in dealing with these disputes,” Lucas says.
