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A Perth real estate agency and its licensee have been ordered to pay a penalty of $23,000 by Western Australia’s State Administrative Tribunal for failing to lodge tenancy bonds.
Graeme Garwood and Harcourts Rockingham, which is registered as Sand Dollar (WA), have received a harsh reprimand for trust account violations that took place in the business.
Mr Garwood has been ordered to pay a penalty of $8,000, while the agency has incurred a $15,000 fine for breaching the Real Estate and Business Agents Act and Code of Conduct by failing to exercise due care, diligence and skill.
The tribunal heard that between November 2020 to August 2021, multiple incidents occurred relating to the handling of funds intended for a trust account.
The company failed to lodge tenancy bonds with the Bond Administrator within 14 days of receipt on nine separate occasions. It neglected to enter the particulars of all amounts received into its trust account within one business day of receipt on five occasions and failed to keep records of money deposited into the trust account on two occasions.
The breaches occurred in relation to properties the agency managed in the Rockingham, Waikiki, Warnbro and Shoalwater areas.
The tribunal heard that the breaches were carried out by staff members who are no longer with the agency. Mr Garwood assured the tribunal that processes had been put in place to ensure that similar incidents do not occur.
To REB, Mr Garwood described the matter as "a terrible situation where unfortunately an individual at Harcourts Rockingham has done the wrong thing and has since been stood down immediately". He noted that "the mediation process was accepted immediately by the business".
Gary Newcombe, the state’s commissioner for consumer protection, used the opportunity to remind agency owners and managers that incidents such as this can cause a great deal of harm to businesses.
“These failings and the subsequent disciplinary action can result in an expensive lesson for agents, as has happened in this case. Also there is a risk that the agency’s reputation and standing in the community is tarnished and their licence may be put in jeopardy".
He also emphasised that those at the top must ensure their company is in compliance with the law.
“While licensees can sometimes blame staff for any failings, ultimately the responsibility for ensuring the agency complies with the law lies solely with the person in bona fide control,” Mr Newcombe said.
All agencies, he stressed, should ensure their framework for dealing with trust account payments is strong and that staff understand the system.
“Our advice to agents is make sure there are processes and procedures in place to check that trust account entries are accurate and bond lodgements are made within the 14 day time limit allowed,” Mr Newcombe said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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