What does a licensee in charge actually answer for?
Every agency needs one licensed person who carries legal responsibility for the business. NSW calls this person the licensee in charge (LIC). Victoria uses principal agent for a sole trader or partnership and officer in effective control for a company. Queensland calls them the person in charge at the principal place of business. The title changes from state to state. The job stays the same: you supervise every part of the agency and the regulator holds you to account when staff break the rules.
In NSW the LIC is the only person who can authorise money leaving the trust account, and that authority cannot be handed to anyone else. Each withdrawal needs its own approval. Only the LIC can sign trust cheques. Cash withdrawals are banned. A staff member can press the button on an electronic transfer, but only once the LIC has given written authorisation. NSW LICs must also write and run an annual training plan for the agency, matched to the CPD year that starts on 1 July.
What the job looks like day to day
Most principals spend less time listing and selling than they did as agents. The week goes on reviewing and approving trust disbursements, checking rent and sales ledgers, signing off on new management agreements, coaching property managers through hard tenancy matters, and handling complaints that come up the line. You recruit, run performance reviews and keep the agency's written procedures current. In Victoria the officer in effective control has to attend the principal office regularly and substantially, so running the business remotely is not an option.
The principal also carries the commercial side. That covers setting fees, watching how many landlords stay and leave, managing cash flow, keeping professional indemnity insurance current, and deciding whether to grow by hiring or by buying. Many principals still hold a personal listing book or a small portfolio. Others step away from client work completely and run the agency as a manager. Both approaches work. The legal duties stay the same either way.
Buying a rent roll or joining a franchise
There are three common ways to become a principal. You can be appointed LIC by an existing owner, start your own agency, or buy into an established business. Plenty of new principals start by buying a rent roll, which is a portfolio of management agreements. Look at each agreement's term and fee, rent arrears, how long landlords tend to stay and how much work the properties will need. Get an accountant and a property lawyer involved before you sign.
A franchise gives you a brand, systems, training and often trust accounting software. You pay for that through upfront and ongoing fees, and the franchisor usually restricts your territory and how you trade. An independent agency gives you full control, but you build the brand and systems yourself. Under either model you still need the licence yourself, or you must employ someone who holds it, because the regulator deals with the licensed person in charge and not the brand.
Who should take this step
The role suits experienced agents or senior property managers who are comfortable with numbers, procedures and managing people. If you love the deal and hate paperwork, being LIC will frustrate you. Trust account breaches, unsupervised staff and poor records lead to disciplinary action against you personally, even if a junior made the error. Victoria's regulator states plainly that failing in these duties breaches the Estate Agents Act 1980. Before taking the role, spend time working closely with a current principal so you know what the job demands.
Pay
AUD a year, before tax. These are the minimum full-time rates under the Real Estate Industry Award 2020 (MA000106), effective 1 July 2026, for a 38-hour week. They set a legal floor for employed LICs. Agency owners are paid from the profit of their business, and there is no official figure for owner income. Refer to the Agency Leadership & Principal salary guide for figures from live adverts.
What you need
- Top-tier individual licenceYou need a class 1 real estate agent licence in NSW, an estate agent's licence in Victoria, or an individual real estate agent licence in Queensland. In South Australia it is land agent registration, and in WA it is a real estate and business agent licence.
- Diploma of Property (Agency Management)CPP51122 is listed for NSW class 1 and for Queensland, together with Certificate IV in Real Estate Practice (CPP41419) units. WA and SA accept it alongside other listed qualifications.
- Supervised experienceNSW requires at least 2 years on a class 2 licence and a logbook covering all Part 1 tasks and at least 8 Part 2 tasks. WA asks for a résumé showing 2 years of employment and evidence of transactions.
- Fit and proper checksExpect police and financial checks. NSW refuses applicants found guilty of a fraud or dishonesty offence in the past 10 years, and SA refuses applicants who are bankrupt or insolvent.
- AgeNSW and Queensland both require applicants to be at least 18.
- Ongoing CPDLicensees in NSW, Queensland and WA must complete continuing professional development to keep their licence.
State by state
| New South Wales | NSW Fair Trading requires the LIC to hold a class 1 licence. Corporations and class 2 sole traders must employ one, and the regulator must be notified within 5 business days of an LIC taking up the role. |
|---|---|
| Victoria | Consumer Affairs Victoria requires a licensed estate agent in charge at the principal office. A company can have only one officer in effective control, who need not be a director, and the 2026-27 company application fee is $479.90 plus $327.10 per director. |
| Queensland | The Office of Fair Trading licence allows you to own or manage an agency and run a trust account. The person in charge at the principal place of business must hold a current individual licence, and processing takes 4 to 6 weeks. |
| Western Australia | Consumer Protection requires both a real estate and business agent licence and a current triennial certificate. Applicants need two business references showing 2 years of full-time experience and a police check less than 3 months old. |
| South Australia | Consumer and Business Services registers land agents. One qualification option is 36 listed units from the Certificate IV and the Diploma, and a new individual registration costs $864 including the first year. |
How to get there
- Year 1Register as an assistant agentIn NSW, hold a certificate of registration and work under a licensee for at least 12 months while you complete the required Certificate IV units.
- Year 2-3Get a class 2 licenceApply once you have completed the units and the class 2 logbook tasks. Practise sales and property management, and learn the trust ledger.
- Year 2-3Complete the Diploma and class 1 logbookStudy CPP51122 while you hold class 2. Have your LIC sign off all Part 1 tasks and at least 8 Part 2 tasks over 2 years.
- Year 4Apply for a class 1 licenceSubmit your diploma, signed logbook and CPD records. Choose a 1, 3 or 5 year term.
- Year 4-6Take an LIC appointmentRun a branch or department for an existing principal so you learn the trust and supervision duties before you put your own money in.
- Year 5+Start, buy or franchise an agencyBuy a rent roll, open an independent office or sign with a franchise group, with advice from an accountant and a lawyer.
Open now on PropertyRoles.com.au
Questions people ask
Can a class 2 licensee in NSW run their own agency?
A class 2 licensee can own the business but has to employ a class 1 holder as LIC to supervise it. Class 2 holders cannot open or manage a trust account or be nominated as LIC.
Can one person be LIC for two separate agencies?
Not in NSW, unless those licensees are in partnership. One LIC can cover several offices or divisions of the same business, but each trust account can have only one LIC authorising withdrawals.
Do I need to be a company director to be officer in effective control in Victoria?
No. The officer in effective control must hold a current individual estate agent's licence, work at the principal office and attend it regularly, but does not have to be a director. A company can appoint only one.
What happens if the LIC goes on leave?
In NSW the principal licensee must appoint another class 1 holder as a replacement and notify the regulator within 5 business days. In Victoria you can apply to approve a short-term manager when the person in charge will be away for 30 days or more.
How much do agency principals earn?
An employed LIC must be paid at least the award's Level 4 rate of $66,940 a year from 1 July 2026. Owners are paid from agency profit, which varies widely, and there is no official figure for owner income.
Sources
- NSW Government: Real estate agent licence
- NSW Government: Licensee in charge role and responsibilities
- Consumer Affairs Victoria: Managing an estate agency office
- Consumer Affairs Victoria: Estate agent's licence for a company
- Queensland Government: Apply for a real estate agent licence
- WA Government: Real estate and business agents licence, individual
- SA.GOV.AU: Land agent registration
- Consumer and Business Services: Land agent registration qualifications
