Victorian director suspended over 6-year trust account failures

Consumer Affairs Victoria (CAV) said that POC Commercial Pty Ltd and its sole director, Patrick O’Callaghan, neglected to carry out required trust account audits between 2018 and 2024.

Trust accounts hold sales deposits, rent and maintenance fees belonging to consumers.

Under Victorian law, trust accounts must be audited every financial year to help ensure client funds are properly managed and protected.

In addition to the suspension and fine, the Victorian Civil and Administrative Tribunal (VCAT) ordered the agency to appoint an auditor to lodge all outstanding audits.

The orders were made in July, with the matter to be reviewed next month to ensure outstanding audits have been completed and lodged.

The measures came as part of CAV’s enforcement efforts to hold real estate professionals accountable for failing to meet their trust account obligations.

A CAV spokesperson told REB that audits were a key protection for clients entrusting their funds with their estate agent, conveyancer, or other professional.

"Consumer Affairs Victoria’s new regulatory priorities for this year show that this remains a top priority. We’ll continue to take action where necessary to make sure consumer money is handled properly,” CAV said.

The spokesperson said that, under recent law changes, the Business Licensing Authority had been granted the power to suspend an agent’s licence if they didn’t lodge a trust account audit report.

“We’ll be working closely with the Authority to make sure poor conduct is weeded out and doesn’t undermine trust in the majority of agents who do the right thing,” they said.

According to CAV director Nicole Rich, the watchdog would continue to crack down on professionals who failed to meet trust account obligations.

“Estate agents are trusted to manage money on behalf of clients. Victorians deserve to know those funds are being properly managed and protected,” she said.