‘System error’ excuse falls flat as agency fined over bond delay

The State Administrative Tribunal (SAT) found that Dilleen Realty SA Pty Ltd failed to lodge a residential tenancy bond for an East Perth property within the required timeframe, delaying lodgement by 155 days.

Under the Real Estate and Business Agents Act 1978 and the industry Code of Conduct, agents have to submit tenancy bonds to the Bond Administrator within 14 days of receiving the funds.

Additionally, the agency provided incorrect information to the tenant regarding the bond lodgement.

The court heard that the agency told the tenant that a “system error” had caused an earlier lodgement attempt to fail and asked for approval to resubmit it.

The tenant was also incorrectly advised that the bond could not be backdated, and later confirmed with the Bond Administrator that it had not been lodged previously.

In total, the company was reprimanded and fined $2,000, while Edward James Dilleen copped $2,000 for failing to ensure the business met its statutory obligations.

During the mitigations, Dilleen told the SAT that they had improved internal processes, strengthening compliance to ensure that further bond-related issues won’t arise.

The tribunal also noted that a new licensee had been appointed to the Perth office to improve oversight and ensure compliance with regulatory requirements.

Commissioner for Consumer Protection Trish Blake said the outcome underscored the need for strict due diligence, warning that agencies and directors will be held accountable when compliance obligations are not met.

“Bond handling obligations are fundamental to ensuring tenants and landlords are not exposed to unnecessary financial risk.”

“Even in the absence of financial loss, these breaches represent serious failures of professional responsibility,” Blake concluded.