Most bad property deals start with a question you never asked
Before you engage a mortgage broker, , , or financial adviser, you need a structured way to assess whether they are qualified, how they get paid, and where their loyalties sit. Five direct questions, asked before you sign anything, can reveal whether a professional is working for you or working for their commission.
- Complaints alleging failure to act in the client's best interest rose 124% in 2024-25, reaching 1,266 complaints .
- AFCA returned $643 million in compensation and refunds to consumers in 2025 .
Most of these disputes start the same way: a buyer trusts a professional without asking the right questions upfront.
Question 1: ask how they are paid, and by whom
This is the most important question because it reveals incentive alignment. A professional paid by you has every reason to serve your interests. A professional paid by someone else has a reason to serve theirs.
Professional | How They Are Typically Paid | What to Watch For |
|---|---|---|
Mortgage broker | Upfront commission (avg. 0.65% of loan) + trail commission (avg. 0.14% p.a.) paid by the lender | Since 1 January 2021, brokers have a legal and must prioritise your interests over their own under the . Ask which lenders are on their panel and whether any lender pays a higher commission. |
Conveyancer / solicitor | Fixed fee or quoted fee paid by you | Ask for the total cost including searches and disbursements. A quote of "$1,200 plus disbursements" can end up at $2,500 once you add title searches, planning certificates, and strata reports. |
Buyer's agent | Fixed fee, percentage of purchase price (typically 1-3%), or hybrid (retainer + success fee) paid by you | If a is "free" or offers a heavily discounted fee, ask who is actually paying them. Some receive undisclosed kickbacks from developers for steering clients toward off-the-plan stock . |
Selling agent | Commission (typically 1.5-3% of sale price) paid by the vendor | The selling agent works for the seller. Their job is to get the highest price, not to help you. This is not a criticism. It is their legal obligation. |
A good answer sounds like: "I charge a fixed fee of $X. My commission is paid by the lender, and here is the range across my panel. I will show you in writing before you proceed." A red flag sounds like: "Don't worry about how I get paid, it doesn't cost you anything."
Question 2: ask for their qualifications and licensing
Every state in Australia requires real estate agents, conveyancers, and mortgage brokers to hold specific licences. You can verify every one of them online in under two minutes.
Mortgage brokers must hold an or be an authorised credit representative under someone who does. You can check this on the ASIC Professional Registers at asic.gov.au . The broker's 6-digit ACL number should be displayed on their website and on every document they give you . Conveyancers and real estate agents are licensed at the state level, and each state maintains a free, searchable public register.
Financial advisers who provide personal advice on financial products must appear on the ASIC Financial Advisers Register at moneysmart.gov.au . This register shows their qualifications, authorised products, employment history, and any disciplinary actions. A financial adviser giving personal advice must hold an or operate as an authorised representative of one.
Buyer's agents only need a real estate licence to operate. They do not need specific buyer's agent qualifications, financial planning credentials, or an AFSL to give property investment advice . Membership of the Real Estate Buyers Agents Association (REBAA) is voluntary and signals a baseline commitment to a code of conduct, but it is not a legal requirement . A red flag sounds like: "I've been in the industry for 20 years" without providing a licence number. Experience is not a substitute for current licensing.
Question 3: ask who else they have a relationship with
arrangements and lender panels create conflicts that are invisible unless you ask about them directly.
Mortgage brokers work with a panel of lenders. Most panels include 20-40 lenders, but a broker may steer you toward lenders who pay higher commissions unless you ask . The best interests duty requires them to prioritise your interests, but it has no safe harbour. There is no checklist a broker can follow to guarantee compliance . Your question forces transparency.
Buyer's agents who receive fees from developers for referring buyers to off-the-plan projects are acting as selling agents in disguise . Ask directly: "Do you receive any payment, commission, or benefit from any developer, builder, or vendor?" Conveyancers recommended by the selling agent may have a referral arrangement with that agent. This does not mean they will give you bad advice, but you should ask.
A good answer lists the full panel of lenders and discloses any referral fees. A red flag sounds like: "We work with all the major lenders" without providing a panel list, or "We have a preferred conveyancer we recommend" without disclosing any financial relationship.
Question 4: ask what happens if things go wrong
Before you engage anyone, you need to know two things: whether they carry insurance, and where you can complain if they fail you.
is mandatory for real estate agents and conveyancers in every Australian state. In NSW, agents must carry a minimum of $1 million per claim and $3 million in aggregate . Mortgage brokers are required to be members of AFCA as a condition of their Australian Credit Licence .
Professional | Complaints Body |
|---|---|
Mortgage broker | Australian Financial Complaints Authority (AFCA) at afca.org.au |
Financial adviser | AFCA at afca.org.au |
Conveyancer / solicitor | State fair trading body or law society |
Real estate agent (selling or buyer's) | State fair trading body or office of fair trading |
Building inspector | State fair trading body or building commission |
Every professional should be able to tell you their complaints process without hesitation. If they cannot, they either do not have insurance or have not thought about accountability.
Question 5: ask to see it in writing
Verbal promises are worth nothing in a property transaction. If it is not in writing, it does not exist.
In NSW, agents who make false, misleading, or deceptive statements face penalties of up to $22,000 per offence . But proving what someone said verbally is nearly impossible in practice. A written or agreement removes the ambiguity. Every professional you engage should give you a written document covering scope of services, fee structure, duration, exclusivity, and disclosure of relationships.
Using all five questions together
These five questions work as a system. Each one closes a gap that the others leave open.
Question | Risk It Addresses |
|---|---|
How are you paid, and by whom? | Misaligned incentives |
What are your qualifications? | Unqualified or unlicensed operators |
Who else do you have a relationship with? | Hidden referral fees and conflicts |
What happens if things go wrong? | No accountability or insurance |
Can I see that in writing? | Verbal promises that disappear |
Ask all five to every professional you engage. The answers will tell you whether you are dealing with someone who is transparent, accountable, and qualified, or someone who is relying on your trust to avoid scrutiny.