QLD Lease - Legal to Pay for Industry Referrals?

[flight393]

We are a Design and Construct Office Fitout company based in Brisbane, Queensland. We feel that currently our market is heavily controlled by commercial property leasing agents.

Once their client has signed a lease on an office space, they refer fitout companies (such as us) for the interior refurbishment works. Is there a legal way for our company to pay a Leasing Agent if they refer us to their client for fitout works and their client proceeds with us?

If so, would there be any limit on the amount we pay them? Would a percentage of the job (such as 2%) be allowed or would it be better to consider vouchers or something similar?

Look forward to your replies.

Thank you.

 

[Rob Legat - SBPL]

It may be illegal if it is not fully disclosed to the contracting party. Section 442B of the Criminal Code makes it illegal for an agent to receive or solicit a secret commission, and section 442BA makes it illegal to give or offer one.

Commercial practices tend to be less controlled that consumer ones, but laws are gradually bridging the gap. You might want to consider, as an indication, the Property Occupations Form 8 Disclosure to Prospective Buyer document for residential sales which has a section for disclosing the agent's benefits obtained from referrals - Property industry forms and fees | Your rights, crime and the law | Queensland Government

As to whether there are limits on what can be paid, I'm not aware of any limits but you might want to consider contacting the Queensland Building and Construction Commission to see if they can offer some insight.