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A West Melbourne agency is facing steep potential fines of over $100,000 for allegedly trading without a licence.
The Sunshine-based firm could be ordered to pay a penalty of up to $165,220, according to the state’s consumer affairs body. The agency is also facing charges of failing to notify the director of Consumer Affairs Victoria (CAV) within 14 days of opening a statutory trust account and failing to meet an inspector’s investigation requirements, as required under the Estate Agents Act.
The maximum penalty for a corporation that has failed to obtain a real estate licence is $192,000 in the state of Victoria.
The agency, which was issued a licence under the name Kamn Real Estate Pty Ltd in April 2021, operates as Area Specialist Sunshine and currently lists a staff of 10 on the agency website. The alleged offence of unlicensed trading took place prior to the issuance of the business’s licence in 2021.
Kamn Real Estate’s licence is currently active, as the firm may continue trading until the matter is settled by a court, unless there are grounds for revoking the licence.
Consumer Affairs Victoria urged anyone who currently has real estate dealings to check the state’s public register to ensure their agent is licenced, as the stakes are high for consumers who find themselves misled by an agent or agency that has not received the proper accreditation.
“People who lose money due to licensed estate agencies breaking the law can access compensation from the Victorian Property Fund – but those who unwittingly engage the services of an unlicensed agent are not protected,” the state body noted.
CAV director Nicole Rich said the case highlighted the importance of only dealing with a licensed estate agent and the state’s efforts to ensure that offenders are sought out.
“We will act to protect buyers, vendors and the industry from unprofessional and unlawful conduct,” Ms Rich said.
CAV has started court proceedings against Kamn Real Estate Pty Ltd; no date has yet been set for a court appearance.
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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