A deregistered Perth building company turned real estate agency has been fined for improperly releasing a $50,000 deposit that should have remained in a trust account.
Australian Property Alliance Pty Ltd, formerly known as Nicheliving Real Estate, has been fined $5,000 by the State Administrative Tribunal (SAT) after having withdrawn a $50,000 deposit from a trust account.
The agency director, Paul Bitdorf, was previously the co-director of the failed Perth building company Projex Management & Construction – Nicheliving, which collapsed and left hundreds of customers stranded with unfinished homes in 2024.
Projex Management & Construction – Nicheliving ex-co-director Ronnie Michel-Elhaj is now an employee of the real estate company.
Rather than keeping the deposit in trust as required by law until the strata plan was registered, the agency transferred the deposits to the builder engaged by the seller just nine days after they were paid.
SAT found the agency's early release of client funds breached the Real Estate and Business Agents Act and fell short of the level of care, diligence and skill required under the industry's Code of Conduct.
The agency admitted wrongdoing and was fined $5,000
The Tribunal approved the jointly proposed orders, finding the deposit should have remained in trust and that its early release contravened buyer protections under the Strata Titles Act.
Commissioner for Consumer Protection Trish Blake said the unlawful release of the deposit undermined key consumer protections, exposing buyers to unnecessary risk and breaching trust account obligations designed to safeguard client funds.
“The law requires deposits for proposed strata lots to remain in trust until the plans are registered. These protections cannot be waived or contracted out of, and agents are expected to understand and follow these requirements,” Blake said.
While it was the first time for Australian Property Alliance Pty Ltd to be under the microscope, the agency directors had previously made a deal with the Western Australian government following the fallout of Projex Management & Construction – Nicheliving.
In 2024, Nicheliving lost its building contractor registration, with directors barred from seeking re-registration for 10 years after hundreds of customers were left with unfinished or defective homes.
The company was then deregistered in a bid to allow about 200 customers access to building indemnity insurance payments of up to $200,000 to finish their builds.
It is unclear whether former customers are currently still waiting for their property to be finished.
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