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A Western Australian real estate agency and its director have been collectively fined $18,000 over multiple trust account audit failures.
First Base Investments Pty Ltd, based in Bicton, was fined $14,000 for four breaches involving overdue trust account audits for the years 2021, 2022, and 2023.
During proceedings, the State Administrative Tribunal found that the agency’s continual failure to supply full audit documentation led to substantial delays in completing the audit.
In one case, the appointed auditor noted that despite “ongoing and numerous follow-up written reminders,” the agency did not supply the necessary audit evidence.
The repeated delays in submitting documents resulted in the trust account audit being almost a year behind schedule.
Under the Real Estate and Business Agents Act 1978, trust account audits are required to be finalised and submitted within three months after the close of each calendar year.
Additionally, the agency failed to record trust money transactions on time on 166 separate occasions, which also contributed to the disciplinary action.
First Base Investments’ licensed director and person in bona fide control, Ross Phillip Wilkinson, was also fined by the Tribunal.
Wilkinson received a $4,000 penalty for insufficient staff supervision and failing to ensure statutory compliance, while the agency was ordered to pay $2,500 in costs.
While the state tribunal acknowledged the trust account breaches, it noted that these were Wilkinson’s first violations in his long-standing career and took into account his personal circumstances at the time.
Commissioner for consumer protection Trish Blake said trust account integrity has been vital for consumer confidence in real estate, with the recent breaches being a serious failure to uphold it.
“Real estate professionals must understand that compliance is not optional, and we will continue to hold agencies and directors accountable when they fall short."
“The public rightly expects transparency and diligence from those entrusted with handling their money. These penalties send a clear message,” she concluded.
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