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A former real estate sales representative from Mandurah has been fined for misusing a tenant’s money to pay for the rent and bond on her own rental home.
The State Administrative Tribunal has issued a $4,500 fine to former agent Dianne Sandra Huggins for illegally accessing a tenant’s trust fund money and forging a receipt to cover her actions.
The tribunal heard that Huggins resided in a rental property managed by her employer, where the required bond of $1,587.20 had not yet been paid.
When the property owner decided to switch agencies, Huggins then misappropriated $2,700 from an unrelated tenant’s bond and rent and used this money to cover the bond and outstanding rent on her own rental property.
An audit undertaken by Huggins’ employer uncovered the shortfall in the agency’s trust account and sparked an internal investigation.
Upon being confronted, Huggins allegedly produced a fabricated bank receipt showing that her husband had paid $2,700 to the agency, which she later admitted was created by altering an existing receipt.
Following Huggins’ resignation from the agency, $2,700 was deducted from her final salary payment to recover the misappropriated trust funds.
The State Administrative Tribunal handed a $4,500 fine to Huggins, reasoning that she had made unauthorised withdrawals from her employer’s trust account and failed to act honestly.
Commissioner for Consumer Protection Trish Blake said Huggins’ conduct had undermined public trust in the real estate industry.
“Knowing full well the unpaid bond would be discovered by the new managing agency, she engaged in a series of deceptive acts, including misappropriating another tenant’s funds and forging a bank receipt,” Blake said.
Blake said that the case necessitated strict regulatory compliance and routine audits of trust accounts, as agencies hold substantial sums of money in trust for tenants and property owners.
“Making unauthorised withdrawals from real estate trust funds is a serious offence, and sales representatives or agents who engage in such misconduct will be subject to legal consequences,” she concluded.
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