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ARTICLE · 09 SEPTEMBER 2025

Agents: Don't pay for the privilege of working for free

Pointon Partners
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Recent case reminds estate agents that if an authority is not completed properly, the agency cannot recover marketing fees.

AustraliaReal Estate and Construction
David Mazzeo
David Mazzeo
Carl Millington
Carl Millington
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A recent County Court decision (Cellmore Real Estate Pty Ltd v Funston [2025] VCC 1205) is a sharp reminder for estate agents. If an authority is not completed properly, the agency cannot recover marketing fees.

In Cellmore, the Exclusive Sale Authority listed advertising costs as "TBA." The Court found this failed to comply with the Estate Agents Act 1980 (Vic). As a result, the agency could not recover its marketing spend. The first campaign with another agent had failed. Cellmore was then engaged on an Exclusive Sale Authority with payment of marketing deferred. Buyer interest was limited, the authority expired, and a dispute over marketing costs followed.

Marketing campaigns are expensive, and in a competitive environment many agents agree to fund advertising upfront to win the listing. But the risks are real. In this case the agent ended up with no commission, unrecoverable marketing fees, and tens of thousands in legal costs after a dispute about recovering

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