Consumer Affairs Victoria warns against failure to audit trust accounts

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Consumer Affairs Victoria warns against failure to audit trust accounts

12 September 2023

In a media release today, Consumer Affairs Victoria (CAV) has highlighted the consequences faced by agencies that fail to conduct audits of their trust accounts within the required annual period. CAV uses the example of recent legal action being taken against an agency after its directors failed to audit their trust account over several years, despite receiving reminders, a warning and infringement notices from CAV.

Agencies operating within Victoria must audit their client trust accounts within three months after 30 June every financial year.

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Former Victorian estate agent convicted over illegal transfers of client funds

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Former Victorian estate agent convicted over illegal transfers of client funds

7 September 2023

Consumer Affairs Victoria (CAV) has reported on a court outcome today concerning the actions of a former real estate agent who, in a series of small transfers, stole nearly $75,000 of their clients’ money from the agency trust account.

The agent was found guilty of two charges encompassing 941 instances of causing a deficiency in a trust account or the fraudulent conversion of funds for the agent’s own use. As a result, the agent was ordered to pay $74,613 in compensation to the Victorian Property Fund and has been sentenced to a 12-month community corrections order, requiring them to complete 200 hours of community service.

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August 2023 Newsletter

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August 2023 Newsletter

4 August 2023

Newsletter snapshot:

  • Industry updates: NSW Government announces change to temporary accommodation access support people in crisis // NSW Government introduces rental commissioner role // Queensland Residential Tenancies Authority reports over 114,000 outstanding bond payments // NSW stock agent news: Sheep and goat electronic ID grants open for saleyards and processors

  • Disciplinary action: Victorian agents hit with over $500k in fines for underquoting // Consumer Affairs Victoria commences action against agency for practising while unlicensed.

  • Legislative changes: NSW Government engages community consultation for further changes to rental laws // No-cause evictions to be banned in South Australia.

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Consumer Affairs Victoria commences action against agency for practising while unlicensed

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Consumer Affairs Victoria commences action against agency for practising while unlicensed

3 August 2023

In a media release posted online today, Consumer Affairs Victoria (CAV) has announced the commencement of court action against an agency after it was found to be acting whilst unlicensed.

The Sunshine-based agency is reported to face up to $165,220 in potential fines. Additionally, it also faces charges of:

  • failing to notify the Director of CAV within 14 days of opening a statutory trust account, and

  • failing to meet an inspector’s investigation requirements, as required under the Estate Agents Act.

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Victorian agents hit with over $500k in fines for underquoting

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Victorian agents hit with over $500k in fines for underquoting

31 July 2023

An underquoting taskforce established by Consumer Affairs Victoria (CAV) has announced that it observed twenty-nine agencies engage in the dishonest act of underquoting from the year 2022 to 2023.

CAV reports that in the 12 months to June 30, “inspectors issued 48 underquoting infringement notices totalling more than $520,000 and issued 37 official warnings to 29 estate agencies”.

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July 2023 Newsletter

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July 2023 Newsletter

7 July 2023

Newsletter snapshot:

  • Site-wide discount to celebrate World Chocolate Day! 🍫

  • Industry updates: Over $300,000 stolen from WA real estate trust account by scammers // Update on NSW rent bidding ban compliance.

  • Disciplinary action: NSW real estate agent sentenced to two years imprisonment following 121 counts of fraud // Former Victorian estate agents representative banned from industry for 10 years, fined $2,500 // Former Victorian agent sentenced for misuse of over $100,000 in trust money.

  • Legislative changes: Rent bidding banned in South Australia // New laws around rent increase frequency for Queensland commenced 1 July 2023.

  • Feature blog: ‘Protecting your real estate business from scam activity and fraud’.

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Former Victorian agent sentenced for misuse of over $100,000 in trust money

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Former Victorian agent sentenced for misuse of over $100,000 in trust money

4 July 2023

A former Victorian agent’s decision to withdraw $105,915 in trust account money from their company’s trust account has landed them a two-year Community Corrections Order. They have also been ordered to complete 350 hours of community service. The sentence was handed down at the Melbourne Magistrates’ Court last week after the former agent pleaded guilty to two charges under the Estate Agents Act 1980.

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Former estate agents representative banned from industry for 10 years, fined $2,500

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Former estate agents representative banned from industry for 10 years, fined $2,500

30 June 2023

Consumer Affairs Victoria (CAV) has banned a former agents representative from registering to work in the industry for ten years, in addition to ordering them to pay $2,500 in fines to the Victorian Property Fund.

This disciplinary action was handed down in the Victorian Civil and Administrative Tribunal (VCAT) after the agent representative was found to have transferred more than $17,000 in account funds to his personal bank account between February and July 2019. CAV began investigations into the individual’s conduct earlier this year.

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June 2023 Newsletter

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June 2023 Newsletter

20 June 2023

Newsletter snapshot:

  • Site-wide ‘End of Financial Year’ discount code!

  • Industry updates: Scammers target real estate and settlement industry trust accounts // Northern Territory 'Water Plan' announced, providing water security for Territory residents.

  • Disciplinary action: WA agency fined over failure to act in best interest of clients // Victorian estate agent prosecuted for alleged trust account misuse // Queensland agent sentenced to eight years in jail for fraud // Victorian agent jailed for trust account misuse.

  • Legislative changes: NSW portable bond scheme and further reform to recent laws around rent bidding // WA Consumer Protection announces changes to tenancy laws // South Australia rental reforms: An update on laws for renting with pets.

  • Important reminder: ACT CPD due 30 June 2023 for licence holders.

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Victorian agent jailed for trust account misuse

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Victorian agent jailed for trust account misuse

16 June 2023

Just days after a Queensland agent was sentenced to eight years in jail for trust account fraud, a Victorian agent has received a 12-month prison sentence for the misuse of funds belonging to their clients.

Consumer Affairs Victoria (CAV) has reported that in addition to the 12-month prison sentence handed down by the Country Court, the former agent has been issued with a two-year Community Corrections Order.

The former agent’s breach of the Estate Agents Act 1980 was based on causing almost $1.6 million in trust account deficiencies and the fraudulent transfer of around $776,000 in trust funds for their own use.

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April 2023 Newsletter

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April 2023 Newsletter

6 April 2023

Newsletter snapshot:

  • Site-wide Easter long weekend discount code!

  • Industry updates: WA Government reports $4 million in bond money waiting to be claimed by tenants and landlords.

  • Disciplinary action: Former Victorian agent faces over 900 charges relating to trust fund misuse.

  • Legislative changes: ACT tenancy reforms commenced 1 April 2023, Reforms to South Australian renting law officially underway.

  • Employment opportunity: Ingleburn NSW, Full-time Property Manager with Linkers Real Estate

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