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Agency fined for commission miscalculation

Agency fined for commission miscalculation

by Reporter 1 comments

A WA-based agency has landed itself in hot water after a sales representative admitted to tampering with commission calculations for a property in 2010.

Rundin Property Consultants of Mundaring was fined $3,000 and sales representative Reginald Roberts was fined $750 for failing to disclose important information about a property for sale and miscalculating his commission.

Consumer Protection claims that at the time of the sale the property was subject to a drainage easement, which had been lodged with the local shire but not registered.

This had not been disclosed to the purchaser, who only found out just prior to settlement.

There was also confusion between the vendor and agency over the commission to be paid due to incorrect figures being displayed next to the various fee structures in the selling agreement, which was also not signed and initialled properly.

The real estate agency and its sales representative had admitted they breached the Code of Conduct for Agents and Sales Representatives by demanding commissions calculated contrary to the code and failing to ascertain or verify material facts as required by the code.

Commissioner for Consumer Protection Anne Driscoll said it was essential that all important information about the property be disclosed to potential buyers.

“Appropriate transparency is required in property transactions in WA, so real estate agents and sales representatives have an obligation to ensure all known and material information about the property is disclosed to buyers prior to offers being accepted,” Ms Driscoll said.

“It is equally important that the contracts are completed in accordance with the Code of Conduct so there is no confusion between the parties when the property goes to settlement.”

Agency fined for commission miscalculation
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