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Consumer Affairs Victoria (CAV) has issued a warning to real estate agents and conveyancers that trust account misuse is under increased scrutiny, following a string of disciplinary actions.
CAV, which oversees consumer rights in Victoria, indicated it was stepping up oversight of trust account compliance to protect consumers’ money.
Trust accounts are used to hold client funds, such as rental payments and property deposits, and must be audited annually under Victorian law.
The statement from CAV warned that “poor management of trust accounts in the real estate industry is under the spotlight”, following a recent number of disciplinary actions.
The regulator recently suspended the licence of Point Cook agent James Anthony Ferris for three months after he failed to undertake trust account audits for his business, James Ferris Property, over a five-year period.
The Victorian Civil and Administrative Tribunal (VCAT) found Ferris was not a “fit and proper” person to hold a licence, citing unprofessional conduct and a lack of due care and diligence.
Ferris was reprimanded, ordered to complete additional professional training, and required to appoint a third party to manage his business’s trust account records for two years once his suspension ends.
In a separate case, Cranbourne agent Carmelo Sottile was fined $500 and ordered to appoint an independent manager for his trust accounts for three years, after failing to lodge audits for four years.
CAV also confirmed that disciplinary proceedings are under way against Cheltenham agent Stephen Horler, who allegedly failed to lodge trust account audits between 2015 and 2022. His matter is set to be heard at VCAT.
The regulator said failure to lodge audit reports may signal broader compliance issues and reinforced that consumer protection remained its priority.
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