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← Legal Guides 14 May 2026

Real Estate Agent Commission Dispute? Letter of Demand (Australia)

Real estate agents who claim commission they did not earn — or invoice fees not properly disclosed — can be pushed back with a Letter of Demand citing state agency law and the Australian Consumer Law.

Australian Consumer Law commission letter of demand real estate agent refund

The agent is invoicing commission after the appointment was withdrawn, the buyer was sourced independently, the marketing was charged outside the agreement, or the agency agreement itself was non-compliant. They are threatening default action.

The legal context

Real estate agents are licensed and regulated by state-based authorities — Fair Trading NSW, Consumer Affairs Victoria, OFT QLD, CBS SA, Consumer Protection WA, CBOS Tasmania, Access Canberra, and Consumer Affairs NT. Each state’s Property and Stock Agents legislation imposes strict requirements on agency agreements, disclosure of fees, and the form of authorities. A non-compliant agency agreement is often unenforceable against the consumer.

The Australian Consumer Law also applies: section 18 (misleading conduct), section 60 (due care and skill) and the unfair contract terms regime in Part 2-3.

Common pushbacks and why they fail

  • “You signed the agency agreement.” If the agreement does not meet the form prescribed by your state’s Act, it may be unenforceable.
  • “We introduced the buyer.” “Effective cause of sale” is a factual question; mere introduction is often not enough.
  • “Marketing fees are non-refundable.” They must have been authorised and substantiated.
  • “You owe commission even though you withdrew the listing.” Depends on the state, the form of agreement, and the timing.

The Letter of Demand approach

The Letter of Demand identifies the agency agreement, the disputed commission or fees, the relevant state Act provisions, the ACL sections engaged, and a 14-day deadline. It names the state Fair Trading body and your state tribunal as the escalation path.

What Claim Done delivers

  • Agency, agreement date, property and amounts in dispute
  • The defects in the agreement or the commission claim
  • Citation of state agency law and ACL provisions
  • Refund or write-off claimed
  • 14-day deadline with named escalation
  • Sent on letterhead for a flat $79

What to expect after

Many agents withdraw the claim once they receive a properly drafted letter that exposes the weakness in their position. If not, escalate to your state’s Fair Trading authority and file in NCAT, VCAT, QCAT, SACAT, SAT, ACAT or NTCAT.

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