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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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 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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Former Victorian agent faces over 900 charges relating to trust fund misuse

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Former Victorian agent faces over 900 charges relating to trust fund misuse

27 March 2023

In a media release this week, Consumer Affairs Victoria (CAV) outlines the staggering number of trust account breaches achieved by a now-former agent of Dandenong, Victoria. A total of 941 instances of trust fund misuse were identified by CAV after the then-agent decided to report their own personal use of trust funds by letter and phone.

It is alleged that approximately $75,000 in trust account funds were fraudulently converted for the agent’s personal use, between 12 March 2019 and 10 January 2020, while trading as Agent 96 Real Estate.

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March 2023 Newsletter

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March 2023 Newsletter

8 March 2023

Newsletter snapshot:

  • Site-wide discount code!

  • Industry updates: WA agents may have their say on changes to real estate CPD, NSW Fair Trading inspectors to crack down on breaches in new rental bidding requirements.

  • Disciplinary action: Former WA real estate agent fined for personal use of trust account funds, Victorian estate agent has licence cancelled for various breaches.

  • Legislative changes: ACT Government announces plans to change property developer legislation.

  • Important dates: NSW CPD due 22 March, WA trust account audit reports due 31 March, NSW assistant agents - are you on track to complete your licence training?

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Victorian estate agent has licence cancelled for various breaches

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Victorian estate agent has licence cancelled for various breaches

24 February 2023

A former agent of Seymour, Victoria has had their licence revoked by Consumer Affairs Victoria (CAV). The licence cancellation was actioned as a part of disciplinary proceedings at the Victorian Civil and Administrative Tribunal (VCAT) in 2021, where it was alleged that the agent:

  • failed to comply with a condition imposed on their licence; 

  • failed to cause their trust accounts to be audited annually for the financial years from 2012 to 2021; 

  • failed to, at all times, act fairly and honestly and to the best of their knowledge and ability in performing their functions as an agent; and

  • engaged in conduct that was unprofessional or detrimental to the reputation or interests of the agent’s industry. 

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February 2023 Newsletter

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February 2023 Newsletter

3 February 2023

Newsletter snapshot:

  • Site-wide discount code!

  • Industry updates: NT Government announces new rent framework to strengthen remote housing sector.

  • Disciplinary action: Western Australia Consumer Protection issues fines to agent over unauthorised trust account withdrawals, Former Victorian estate agent investigated for falsified records and misuse of trust account funds.

  • Important dates: NSW CPD due 22 March, WA trust account audit reports due 31 March.

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Former Victorian estate agent investigated for falsified records and misuse of trust account funds

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Former Victorian estate agent investigated for falsified records and misuse of trust account funds

30 January 2023

Consumer Affairs Victoria (CAV) is acting against a former estate agent for the alleged falsification of records and misuse of more than $17,000 in trust account funds.

The former agent’s employer conducted an internal investigation upon identifying the discrepancy in funds and subsequently contacted CAV to report the issue. The trust account funds were restored using the agency’s company operating account.

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December 2022 Newsletter

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December 2022 Newsletter

2 December 2022

Newsletter snapshot:

There’s been a lot of discussion around legislative changes for the SA, NSW and WA residential and commercial property sectors over the past month. We also saw several agents in WA, Tasmania and Victoria receive court charges, fines and licence suspensions over industry misconduct.

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