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Commission

For all property agents

By law, there is a limit to the commissions you can charge as a real estate agent, resident letting agent, auctioneer or pastoral house agent. There is no legislation covering commission for commercial property transactions.

Maximum commissions

Residential property

The maximum commission on the purchase or sale of residential property:

If the purchase or sale price is less than $18 000, the commission is 5 per cent of the price.
If the purchase or sale price is more than $18 000, the commission is $900 and 2.5 per cent of the part of the price that is more than $18 000.

The maximum commission on the letting of residential property if it is under a tenancy for more than one year:

If commission has not been paid on the letting of the property, the commission is 7.5 per cent of the rental collected.
If commission has been paid on the letting of the property, the commission is 5 per cent of the rent collected for the first year and 7.5 per cent from then on.

The maximum commission on the letting of residential property if it is under a tenancy for less than one year:

If tenancy is more than three weeks, the commission is one week´s rent.
If tenancy is between two and three weeks, the commission is 75 per cent of one week´s rent.
If tenancy is less than two weeks, the commission is 50 per cent of one week´s rent.

The maximum commission on collecting residential property rent for tenancies for holiday purposes:

If the tenancy is less than three months, the commission is 12 per cent of the rent collected.
If the tenancy is more than three months, the commission is 9 per cent of the rent collected.

The maximum commission payable on the sale of a building for removal:

10 per cent of the purchase price.

Rural property

Maximum commission on sale of freehold rural land:

If the sale price is not more than $18 000, commission is 5 per cent of the price.
If the sale price is more than $18 000, commission is $900 and 2.5 per cent of the part of the price that is more than $18 000.

Maximum commission on sale of leasehold rural land:

If the sale price is less than $1000, commission is 10 per cent of the price.
If the sale price is more than $1000, commission is $100, and 5 per cent of the part of the price that is more than $1000 and not more than $5000, and 2.5 per cent of the part of the price that is more than $5000.

Maximum commission on letting of rural land:

If the rent is less than $200, commission is 10 per cent of the first year´s rent.
If the rent is more than $200, commission is $20 and 5 per cent of the part of the rent that is more than $200.

Maximum commission on share farming:

The maximum commission for negotiating a share farming agreement is 1.5 per cent of the amount an owner or lessor says the share tenant would receive as a share of the profits for one year from agreement commencement (based, if possible, on the profits received in a fair average season).

Maximum commission on exchange of properties (rural):

To calculate the maximum commission on an exchange of properties, use the rate prescribed for each property as if each property had been sold separately for the amount adopted by the commissioner of stamp duties as the value of each property respectively for the purposes of the Duties Act 2001.

Holiday lettings

You cannot charge clients a letting fee (a finding fee) for arranging the letting of residential property for holiday purposes. You are still entitled to a commission on rent collection of up to 12 per cent.

GST

You must calculate GST in addition to commission charges. Fees and charges, and any fees for appointment as agent, must include GST. If you are found guilty of charging or keeping an unauthorised or excessive commission, you will be ordered to return this amount to the client. You can be fined up to $20 000 (individuals) or $100,000 (corporations). It is illegal to charge a commission when you have a beneficial interest in a sale. If you do so, a court can have you return the money.