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Agency in hot water over trust account breach

08 May 2015 Elyse Perrau

The regulator has threatened property managers with “regular auditing” after uncovering compliance breaches at one business.

Urban WA Real Estate and director Robyn Angela Horsman were fined $1,500 each and were ordered to pay tribunal costs of $750, according to Consumer Protection WA.

Consumer Protection said it took disciplinary action after an audit found the Perth agency failed to keep full and accurate trust account records in the 2012 and 2013 audit years.

“Ms Horsman admitted that she failed to properly supervise the internal procedures relating to the operation of the trust account during that period,” Consumer Protection said.

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“The State Administrative Tribunal acknowledged that there was no loss incurred by members of the public and the breaches were not the result of dishonest conduct.”

Consumer Protection acting commissioner Gary Newcombe said the department would catch out agencies that breach trust account laws. 

“Regular auditing of these trust accounts will uncover any breaches of these laws, so compliance is essential and those found to have failed to comply may face prosecution and have their reputations tarnished in the marketplace,” Mr Newcombe said.

“Licensees and property managers should properly supervise their employees and have sound accounting practices in place to facilitate the handling of the funds so they abide by the strict rules regarding trust accounts.”

Residential Property Manager offered Urban WA Real Estate the chance to comment but received no reply.

[Related: PM banned for ‘cavalier’ approach to trust account]

 

Agency in hot water over trust account breach
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