Consumer Affairs Victoria has taken significant action against misappropriation of trust account funds and reminded real estate agents to make sure they’re doing the right thing with their clients’ money.
Minister for Consumer Affairs, Gaming and Liquor Regulation, Melissa Horne said the reminder was issued after the Regulator handed out 117 infringement notices, amounting to more than $120,000, and official warnings to agents who didn’t lodge their trust account audit reports for last year.
“Audits are a critical consumer protection measure that ensure client moneys are being held on trust and not misused or taken for other purposes,” Ms Horne said.
“While most agents are doing the right thing when it comes to maintaining their trust accounts, agents who don’t have their trust accounts audited, or who fail to lodge a copy of the report, face penalties of up to almost $20,000,” she said.
“Those found to have spent trust money fraudulently for their own use can face penalties of up to $82,510 or up to 10 years’ imprisonment.”
Ms Horne said estate agents must deposit any client money they received in advance into a trust account for safe keeping, including sales deposits, rent or fees for advertising and maintenance.
“Trust account audit obligations are critical to protecting money that belongs to other people, and estate agents who don’t comply will be held accountable,” the Minister said.
“Estate agents need to understand their trust account requirements, and anyone who breaks the rules will face the consequences of their negligence,” she said.
