A $225,000 fine - the largest ever imposed on a WA real estate agency - has been handed to a former Willetton business following a sustained pattern of trust account breaches and failures to lodge tenancy bonds.
• Agent fined record $225,000 in one of WA's worst real estate misconduct cases
• Investigation found 57 unexplained trust account withdrawals totalling $334,915
• Embezzled clients' funds with no explanation for the missing money
A $225,000 fine - the largest ever imposed on a WA real estate agency - has been handed to a former Willetton business following a sustained pattern of trust account breaches and failures to lodge tenancy bonds.
Jim's Realty Pty Ltd, which formally traded as Agape Property Group, committed the offences over several years, engaging in deliberate and repeated breaches of the Real Estate and Business Agents Act 1978 and the Residential Tenancies Act 1987.
On 30 January 2026, the Perth Magistrate's Court convicted the company of 35 charges of failing to credit client money to the trust account, unlawfully withdrawing trust funds, keeping improper records and late bond lodgement. In addition to the fine, the company was also ordered to pay $577.50 in costs.
In May 2023, the Department of Local Government, Industry Regulation and Safety's Consumer Protection division executed a search warrant at the agency's premises, following an audit of the agency's 2021 annual report, which revealed a major discrepancy between the trust account ledger balance of $235,050 and the actual bank balance of just $46,613. The seized documents were given to a forensic auditor, whose report substantiated these charges.
Auditors identified (amongst other things):
• 57 unexplained withdrawals totalling more than $334,915;
• incomplete or inaccurate sales ledgers; and
• trust account records that were not capable of being properly audited.
The Federal Court ordered the agency be wound up in September 2024, with liquidators confirming there were no assets available to compensate creditors. However, those who lost money may seek compensation through the fidelity guarantee account, a fund designed to reimburse individuals who suffer loss of trust money or trust property as a result of criminal or fraudulent conduct by licensed real estate or business broking professionals.
Jim's Realty was also convicted of 26 breaches of the Residential Tenancies Act for failing to lodge tenancy bonds with the Bond Administrator at Consumer Protection within the required 14 day period, or at all, between July 2021 and October 2023.
The agency had previously been reprimanded and fined $5,000 by the State Administrative Tribunal in 2018 for unlawful trust account withdrawals and failing to balance its trust account for four months.
In sentencing, Magistrate Randazzo described the offending as serious, noting the significant sums lost through fraudulent behaviour. His Honour said punishment and general deterrence were clearly required, finding no mitigating factors, even though the company is in liquidation and has limited capacity to pay.
Commissioner for Consumer Protection Trish Blake said the case represented one of the most serious examples of trust account misconduct ever seen in WA.
"This conduct represents some of the gravest offending under the legislation, marked by deliberate and repeated embezzlement of clients' funds with no accountability for where the money went. These were not isolated incidents but a clear pattern of offending," Ms Blake said.
"Despite the company's insolvency, Consumer Protection proceeded with the prosecution due to the seriousness of the conduct and the need for strong deterrence across the real estate industry."
Ms Blake said the agency's poor record keeping meant significant amounts of money could not be matched to any owner or tenant.
"When proper records are not kept, it becomes impossible to determine what funds were paid and who they belong to. In this case, the records were so deficient that substantial sums could not be allocated to any party," the Commissioner said.
She also emphasised the seriousness of the late bond lodgements.
"Security bonds are often significant sums, and both tenants and landlords rely on them being handled correctly. Lodging them late - or in this case, not at all - exposes consumers to unnecessary financial risk."
More information about the obligations of real estate agents is available on the Consumer Protection website
