Form 6 Agency Agreement in Queensland: What Sellers Need to Know
Before you sign a Form 6, understand what you're agreeing to. Here's a plain-English guide to the document that authorises your agent to sell your property in Queensland.
In Queensland, before a licensed real estate agent can market or sell your property, you must sign a document called a Form 6. It is the official appointment form prescribed under the Property Occupations Act 2014 and it sets out the legal relationship between you and your agent. Signing it without reading it carefully is one of the more common mistakes sellers make. It is not a long or complicated document, but several clauses have real financial and practical consequences that are worth understanding before you commit.
What the Form 6 actually does
The Form 6 appoints your agent as your authorised representative for the purpose of selling (or leasing or managing) your property. Without a signed Form 6, the agent has no authority to advertise your property, conduct open homes, negotiate with buyers, or accept a deposit. The form exists to protect both parties: it records exactly what the agent is authorised to do, what they will be paid, and under what circumstances.
The form is standardised by the Queensland government, which means the structure and key fields are the same regardless of which agency you use. What differs between agencies is what they fill in: the appointment type, the duration, the commission rate, and what is included in or excluded from the marketing budget. Those are the sections that require your attention.
Exclusive versus open appointment
One of the most significant choices in the Form 6 is whether you are granting the agent an exclusive or open appointment. An exclusive appointment means only that agent can sell your property during the appointment period. An open appointment means you can engage multiple agents simultaneously, and the commission is payable to whichever agent introduces the buyer who ultimately purchases.
In practice, most professional sales campaigns in Brisbane's inner east run on an exclusive basis. Agents invest significantly in photography, copywriting, marketing, and time when they take on a listing. An open appointment reduces that incentive, because any effort they put in could be undercut by another agent who happens to introduce the buyer. The result is that open-listed properties often receive less attention, not more, even though the logic of multiple agents sounds appealing in theory.
If you do sign an exclusive appointment, pay attention to the duration. Appointment periods of 30 to 90 days are typical. At the end of the exclusive period, the appointment may revert to open or expire entirely, depending on what was agreed. If your property has not sold and you want to extend or change agents, you need to be clear on what the Form 6 says about what happens next.
Commission: when it is due and how it is calculated
Commission in Queensland is typically expressed as a percentage of the sale price plus GST. It is due on settlement, not on the signing of a contract. If a contract is signed but falls through before settlement, no commission is typically payable, though this depends on the specific reason for the collapse and the wording in your agreement. Read this section of the Form 6 carefully and ask your agent to clarify if anything is ambiguous.
Commission rates are not fixed by law in Queensland and are fully negotiable. Typical rates for residential property in Brisbane's inner east sit in the range of 2% to 2.75% plus GST, though these vary based on the property, the expected sale price, and the services included. Some agents offer a fixed-fee structure. The right question is not simply which agent charges the least, but what you are getting for the fee and whether that is likely to produce a better net result. An agent who charges 2.5% but achieves $50,000 more at sale produces a significantly better net outcome than one who charges 1.75% and achieves a lower price.
Marketing costs are separate from commission
The Form 6 will include a section on marketing and advertising costs. These are separate from the agent's commission and are typically payable by the vendor regardless of whether the property sells. Typical marketing costs in Brisbane's inner east include professional photography, listing fees on realestate.com.au and Domain, signage, and any premium listing upgrades. Costs for comparable properties and campaign lengths generally run in the range of $2,500 to $6,000, though prestige or unique properties may attract higher budgets.
Some agencies include marketing in their commission structure. Others charge it separately upfront or on settlement. Make sure you understand exactly what you are agreeing to pay, when payment is due, and what happens to that money if the property does not sell within the appointment period.
The cooling-off period
For residential property appointments, Queensland law provides a five-business-day cooling-off period after you sign a Form 6. During this period you can withdraw from the appointment without penalty. This right exists to protect sellers from high-pressure sign-ups, and it is worth knowing about before you sit down with an agent. If you sign on a Tuesday afternoon after an appraisal and feel uncertain by Thursday, you have until the end of the following Tuesday to withdraw without cost.
After the cooling-off period expires, withdrawing from the appointment or terminating early may expose you to the marketing costs already incurred and potentially commission if the agent can demonstrate they introduced the eventual buyer. The specific consequences depend on the wording of the agreement you signed.
What to check before you sign
Run through these five points before you sign any Form 6. First, is the appointment exclusive or open, and does that match what you discussed with the agent? Second, what is the appointment duration and what happens at the end of it? Third, is the commission rate and the events that trigger payment clearly specified? Fourth, what marketing costs are you committing to and when are they payable? Fifth, is the authorised sale price range realistic and consistent with what the agent told you at the appraisal?
If anything in the document differs from what was discussed verbally, raise it before you sign. A good agent will have no hesitation in explaining every line. If you feel rushed or pressured to sign before you have had time to read the document properly, that is worth noting.
It is also reasonable to ask an independent solicitor to review the Form 6 before you sign, particularly if you are selling a high-value property or the appointment terms feel complex. The cost of that advice is minor compared to the value of the transaction you are entering.
Questions about your agency agreement? Daniel is happy to walk you through what a Form 6 covers and what to look for before you commit. No pressure, just plain answers. Contact Daniel.