It's the question every wary buyer eventually asks: if a buyers agent is meant to be on my side, how do I know they're not quietly pocketing something from the other side of the deal? It's a fair worry. The whole premise of a buyers agent is independence, and independence is exactly what a hidden payment corrodes. Here's an honest look at where conflicts of interest can creep in, what's actually allowed under NSW law, and the handful of questions that tell you who you're really dealing with.
What a 'kickback' actually means here
In property, a kickback is any payment or benefit an agent receives for steering you toward a particular deal, without you knowing about it. That could be a selling agent quietly sharing part of their commission for bringing a buyer, a developer paying a fee for every apartment sold in their project, or a mortgage broker, conveyancer or inspector passing back a cut for the referral. The problem isn't that money changes hands; it's that an undisclosed payment gives your agent a reason to serve someone other than you, precisely when you're relying on them to be impartial.
A buyers agent's entire value rests on one thing: they answer to you and no one else. The moment a hidden payment enters the picture, that's no longer true.
Where conflicts of interest creep in
The common ones to watch for
- Project marketers and 'free' buyers agents: some off-the-plan and new-development sales pay a large commission to whoever brings the buyer, so a service that's free to you may be earning thousands from the developer.
- Commission splits with selling agents: a buyers agent accepting a share of the vendor's commission has a reason to favour that listing over a better one elsewhere.
- Referral fees from service providers: kickbacks from a specific broker, solicitor or building inspector can shape who your agent recommends.
- Dual agency: an agent who also lists properties for sellers can end up representing both sides of the same transaction, which is a structural conflict, not just a financial one.
What NSW law actually requires
Under the Property and Stock Agents Act 2002, agents in NSW can't simply receive secret commissions. They're required to disclose to you, in writing, any benefit or commission they expect to receive from a transaction, and rebate or account for it in line with the rules. A genuine buyers agent charges you a fee and takes nothing from the other side; if any third-party benefit exists, it must be disclosed and consented to, not hidden. That legal duty is why the written agency agreement matters so much, and why an evasive answer about how someone gets paid is a warning in itself.
Tip: 'free' is the word to interrogate. If a buyers service costs you nothing, someone else is paying them, and that someone has their own interests. Always ask who, and how much.
Want an agent whose only pay cheque comes from you?
Find a Sydney buyers agentQuestions that surface a conflict fast
Ask these before you engage
- Do you ever receive commissions, referral fees or any benefit from selling agents, developers or project marketers?
- Do you also act for vendors, or only ever for buyers?
- How exactly are you paid, and will the full fee structure be in the written agreement?
- If you refer me to a broker, solicitor or inspector, do you receive anything for that referral?
- Are you a member of REBAA, and do you follow its code that requires buyer-only representation?
The answers matter less than how they're given. A properly independent agent will find these questions completely reasonable and answer them plainly. Discomfort, deflection, or a rehearsed reassurance without specifics is the tell.
How to lock in genuine independence
The cleanest structure is simple: you pay your agent a fee, whether flat or tiered, they accept nothing from the seller's side of the deal, and everything is set out in the written agreement before you start. Membership of REBAA, the buyer-only professional body, adds a code of conduct on top. And you can always sanity-check independence against the public record, since a truly buyer-only agent won't also appear as the listing agent on sale listings. Get those three things aligned, a clear fee, no third-party benefits, and verifiable buyer-only status, and the kickback question answers itself.