ACT Real Estate Exam: Ethics and Professional Standards

Last updated: April 2026

Ethics and professional standards form the backbone of the real estate industry in the Australian Capital Territory (ACT). For aspiring agents, demonstrating a deep understanding of these principles is not just about passing a test—it is about protecting consumers and maintaining the integrity of the profession. If you are preparing for your licensing assessment, this topic will feature heavily. For a broader overview of your study requirements, be sure to read our Complete ACT Real Estate Agent Licence Exam Exam Guide.

The Regulatory Framework Governing ACT Real Estate Ethics

In the ACT, real estate agents are regulated by Access Canberra. The ethical and professional standards you must adhere to are legally binding and are primarily derived from two key pieces of legislation:

• The Agents Act 2003: The primary legislation governing the licensing and conduct of real estate, stock and station, and business agents in the ACT.
• The Agents Regulation 2003: Specifically, Schedule 8 of this regulation outlines the mandatory Rules of Conduct that all licensed agents and registered assistant agents must follow.

Failing to adhere to these standards can result in severe penalties, including hefty fines, suspension, or the complete cancellation of an agent's license.

Core Ethical Duties Under the Rules of Conduct

The ACT Rules of Conduct establish a baseline for professional behavior. Exam questions will often present you with situational scenarios to test your application of these rules.

1. Fiduciary Duty and Acting in the Client’s Best Interests

When a client signs an agency agreement with you, a fiduciary relationship is formed. This means you are legally obligated to act in their best financial and personal interests, placing their needs above your own and above those of the buyer (unless you are a buyer's agent). To fully grasp the legal boundaries of this duty, we highly recommend reviewing our guide on agency relationships explained.

2. Honesty, Fairness, and Transparency

Agents must act honestly, fairly, and professionally with all parties in a transaction—including buyers and tenants, even though they do not pay the agent's commission. Engaging in harsh, unconscionable, or high-pressure tactics violates both the Agents Act 2003 and the broader Australian Consumer Law (ACL).

3. Disclosure of Material Facts

A "material fact" is any piece of information that would reasonably influence a person's decision to buy, sell, or rent a property, or influence the price they are willing to pay. In the ACT, agents have an affirmative duty to disclose known material facts to potential buyers.

Practical Scenario: You are selling a home in Tuggeranong that experienced severe internal flooding two years ago due to a burst municipal pipe. The damage was repaired, but the history of flooding is a material fact. Failing to disclose this to a prospective buyer is considered deceptive conduct and a breach of ethical standards.

Navigating Conflicts of Interest

Conflicts of interest occur when an agent's personal or financial interests compete with their duty to their client. The exam frequently tests your knowledge of how to handle these situations legally.

Beneficial Interests (Section 71 of the Agents Act 2003)

Can an agent buy a property they are listed to sell? Yes, but it is heavily restricted. Under Section 71 of the Agents Act 2003, an agent (or their close associate/family member) cannot obtain a beneficial interest in a property they are selling unless they provide full, written disclosure to the seller, and the seller agrees in writing before the contract is signed. Furthermore, the agent cannot charge a commission on this sale.

Secret Commissions and Rebates

Agents must not accept undisclosed kickbacks. For example, if a property manager receives a 10% referral fee from a local plumbing company for assigning them maintenance work on a client's rental property, this fee must be explicitly disclosed to the landlord in writing. Keeping it secret is illegal and highly unethical.

Misleading and Deceptive Conduct: The Underquoting Problem

Under the Australian Consumer Law (ACL), which applies to ACT real estate agents, misleading and deceptive conduct is strictly prohibited. The most common exam topic related to this is underquoting.

Underquoting occurs when an agent advertises a property at a price that is lower than the agent’s estimated selling price, lower than the seller's asking price, or lower than a price the seller has already rejected. Prices must be updated promptly if the seller's expectations change or if higher offers are rejected.