Failing to ensure timely audits of its trust account over a three-year period has led to a real estate agency and its director being reprimanded and fined a total of $18,000 by the State Administrative Tribunal.
- Bicton agency, director fined $18,000 for audit failures over three years
- Auditor cited repeated delays and lack of cooperation in audit materials
- 166 instances of late trust money recording also contributed to disciplinary action
Failing to ensure timely audits of its trust account over a three-year period has led to a real estate agency and its director being reprimanded and fined a total of $18,000 by the State Administrative Tribunal.
First Base Investments Pty Ltd, of Bicton, was fined $14,000 for four breaches of the Real Estate and Business Agents Act 1978 relating to overdue trust account audits for the years 2021, 2022 and 2023. The agency also failed to record trust money transactions within the required timeframe on 166 separate occasions.
Ross Phillip Wilkinson, the licensed director and person in bona fide control of the agency, was fined $4,000 for failing to adequately supervise staff and ensure compliance with statutory obligations. The agency was also ordered to pay $2,500 in costs.
The Tribunal heard that the agency's failure to provide timely and complete audit materials significantly delayed the auditing process. In one instance, the appointed auditor reported that despite "ongoing and numerous follow-up written reminders," the agency failed to supply appropriate audit evidence, resulting in a trust account audit being overdue by nearly a year.
Under the Real Estate and Business Agents Act 1978, trust account audits must be completed and lodged within three months after the end of each calendar year.
In mitigation, the Tribunal acknowledged that these were the first breaches by the respondents in their long-standing involvement in the real estate industry. Personal circumstances affecting Mr Wilkinson during the relevant period were also taken into account.
Commissioner for Consumer Protection Trish Blake said the agency was committed to ensuring compliance and accountability within the real estate sector.
"Trust account integrity is fundamental to consumer confidence in the real estate sector, and these breaches represent a serious failure to meet that obligation," Ms Blake said.
"Real estate professionals must understand that compliance is not optional, and we will continue to hold agencies and directors accountable when they fall short.
"The public rightly expects transparency and diligence from those entrusted with handling their money. These penalties send a clear message."
More information on the obligations of real estate agents is available on the Consumer Protection website
