Ensure you never miss an issue of the
real estate business bulletin
Agency fined for overcharging PM fees

Agency fined for overcharging PM fees

Agency fined for overcharging PM fees
by Reporter 0 comments

A real estate agency has been reprimanded and fined for numerous law breaches relating to trust accounts and overcharging on agreed property management fees.

Consumer Protection began disciplinary action against the agency after it was found, through a qualified audit report, that the company had at various times between February 2014 and January 2016 breached the Real Estate and Business Agents Act by:

• Failing to pay money received into their trust account as soon as practicable; 
• Failing to keep full and accurate accounts of all monies received or held by it; 
• Failing to record the details of payments received before the end of the next business day;
• Failing to correctly balance the accounts at the end of each month; and
• Receiving payments for property management services which were greater than the amounts agreed in writing.

The tribunal found that Mr Howes had breached the code of conduct for real estate agents and sales representatives by failing to properly supervise the agency, being the person in bona fide control.

Acting commissioner for consumer protection David Hillyard said all WA real estate agencies must comply with every aspect of the law relating to the operation of their trust accounts.

“Real estate agencies can hold large amounts of money in trust for tenants and property owners, that’s why there are strict rules surrounding the handling of those funds and regular accounting and auditing of trust accounts,” Mr Hillyard said.

“Agents and their employees should be aware of the procedures relating to the handling of bond and rent payments from tenants and make sure there are systems in place to ensure the funds are handled in accordance with the law.”

Agency fined for overcharging PM fees
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?