Can a Real Estate Agent Block Me From Renting My Unsold Property?

“Pay-later” marketing loan arrangements are being offered by some real estate agents as a way to fund listing and advertising costs, with repayment deferred to settlement. But what happens when the property doesn’t sell — and a clause in the contract then stops you from renting the property to repay the loan?

What Is a Marketing-Loan Clause?

A marketing-loan clause is a provision in a real estate agent’s agreement that:

• Allows the seller to defer up-front marketing costs (e.g., $5,000 for advertising, photography, and listings)
• Designates the deferred amount as a loan repayable at settlement
• May grant the agent security over the property as collateral for the outstanding debt

In isolation, deferring marketing costs to settlement is a commercially reasonable arrangement. The problem arises when additional clauses prevent the seller from taking any action to repay the loan — particularly clauses that block renting.

The “No Renting” Clause

Some marketing-loan agreements include a provision preventing the seller from renting the property while the marketing loan is outstanding. The concern is timing:

• During an active exclusive agency period: An agent may legitimately restrict renting, since tenants can interfere with open homes, inspections, and auction preparation. This is commercially reasonable.
• After the exclusive period expires without a sale: If the property is no longer being actively marketed and there is no other way for the seller to repay the loan, a clause blocking rental income as a repayment mechanism starts to look very different.

Is This an Unfair Contract Term?

Under the Australian Consumer Law (Cth) Sch 2, a term in a standard form consumer contract may be declared unfair if:

• It causes a significant imbalance in the parties’ rights and obligations
• It is not reasonably necessary to protect the legitimate interests of the party who would benefit from it
• It would cause detriment to the consumer if relied upon

A clause that:

• Prevents the seller from renting (their only realistic means of generating income to repay the debt)
• While the agent holds security over the property and could sell it anyway to recover the funds
• At a time when there is no active marketing arrangement that would justify restricting access

…begins to edge into unfair contract term territory.

Practical Steps to Take

1. Write to the agent explaining that you intend to take the property off the market and rent it as the only realistic way to repay the loan — then wait for their response
2. Ask for reasons in writing if they refuse — understanding their stated justification will help assess your legal options
3. Contact Fair Trading (Queensland or the relevant state) or the ACCC for guidance on unfair contract terms in real estate agreements
4. Seek legal advice — a solicitor can review the specific contract terms and advise whether the “no renting” clause is enforceable, challengeable, or unconscionable in your circumstances

Agent Security Over the Property

If your contract grants the agent security over the property, this means:

• The debt is registered against the title
• If the debt is not repaid, the agent may ultimately be able to force a sale to recover the amount — which is, of course, what the seller wanted in the first place

This creates an odd dynamic: the agent’s security interest is better served by allowing the seller to stay in the market, yet the “no renting” clause may prevent the seller’s only way of generating the funds to repay voluntarily.

Related Topics

• New AUSTRAC Anti-Money Laundering Rules for Real Estate 2026
• Form 2 Seller Disclosure Queensland
• Legal Matters Episode 21 — De Facto Rights, BFAs & Auction Disclosure
• Consumer Law Practice Area

Need Advice on an Unfair Contract Term?

If you’re trapped in a marketing-loan agreement with unreasonable conditions, our team can review the contract and advise on your options.

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