WA agency fined over failure to act in best interest of clients
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Prestige Maintenance Perth used third-party contractors to perform the repair and maintenance services. Invoices presented to the property owners represented mark-ups of between 17 and 70 per cent on top of the contractors’ original price. The invoices were paid from trust monies held in the names of the owners.
10 May 2023
Western Australia Consumer Protection has reported details on its website today surrounding a WA agency’s failure to act in the best interest of its clients.
Consumer Protection carried out disciplinary actions on the agency by reprimanding its actions and issuing the agency $6,000 in fines for breaching the Real Estate and Business Agents Act 1978 and the Code of Conduct under the Act. The agency’s principal was also reprimanded, in addition to being fined $4,000, “for failing to exercise due care, diligence and skill in her supervision of the agency in relation to the breach.”
The breaches centre around the agency principal’s exploitation of their clients’ trust by making property maintenance recommendations to clients, which involved referral to a business owned by the agency principal. The maintenance services were then carried out by third-party contractors, with the fees for services being inflated between 17 and 70 per cent on top of the contractors’ original price.
WA Consumer Protection reports further on the issue as follows:
Agency fined over improper property maintenance recommendations (Anna-Marie Thornton / Harcourts Prestige Real Estate)
Agency fined $6,000 and Director fined $4,000 for code of conduct violations
Agency Director was also Director of a recommended maintenance company
Agents reminded to always act in the best interests of their clients
A Canning Vale real estate agency has been fined by the State Administrative Tribunal for failing to act in the best interests of five of its clients in relation to property maintenance recommendations and arrangements.
Following disciplinary action by Consumer Protection, Prestige One Pty Ltd, trading as Harcourts Prestige Real Estate, was reprimanded and fined $6,000 for breaching the Real Estate and Business Agents Act and the Code of Conduct. The agency’s sole Director and person in bona fide control Anna-Marie Thornton was reprimanded and fined $4,000 for failing to exercise due care, diligence and skill in her supervision of the agency in relation to the breach.
Between around May 2019 and April 2021, the agency recommended to the five property owners, who were clients, that they use the services of Prestige Maintenance Perth for repairs and maintenance. Ms Thornton was the sole Director of Prestige Two Pty Ltd which traded as Prestige Maintenance Perth. The business has since ceased trading.
Prestige Maintenance Perth used third-party contractors to perform the repair and maintenance services. Invoices presented to the property owners represented mark-ups of between 17 and 70 per cent on top of the contractors’ original price. The invoices were paid from trust monies held in the names of the owners.
The five properties involved were located in Treeby, Piara Waters, Gosnells, Harrisdale and Wattle Grove.
Commissioner for Consumer Protection Trish Blake said the code of conduct requires real estate agents to always act in good faith and in the best interests of their clients.
“Agents need to be mindful of their obligations under the code of conduct and make certain the interests of their clients come first at all times,” Ms Blake said.
“Clients need to receive value for money from any service provider engaged on their behalf. In this case the agents’ use of a company in which Ms Thornton was involved did not provide value for money as Prestige Maintenance did not do anything that the agent could not do itself.”
More information on the obligations of real estate agents, sales representatives and property managers is available on the Consumer Protection website or enquiries can be made by email consumer@dmirs.wa.gov.au or by calling 1300 30 40 54.
