August 2024
Real estate agency, licensee fined for late bond lodgements
Failing to lodge a substantial number of tenancy security bonds within the required 14-day timeframe has seen a Cannington real estate agency and its director fined a total of $10,000 by the State Administrative Tribunal.
Domain Elysium Pty Ltd and director Simon Backhouse were both reprimanded, with the agency fined $6,000 and Mr Backhouse fined $4,000 for breaching the Real Estate and Business Agents and Sales Representatives Code of Conduct when they failed to exercise due care, diligence and skill.
On 14 occasions between April 2021 and December 2022, agency staff lodged security bonds received for residential rental properties with the Bond Administrator between five and 81 days later than legally required.
As the person in control of the business, Mr Backhouse failed to take reasonable steps to ensure his employees complied with Residential Tenancy Act (RTA) and Code requirements.
Commissioner for Consumer Protection Trish Blake said it was important for those individuals in charge of real estate agencies to adequately supervise their employees to ensure they comply with the law.
“Ultimately, the responsibility of making sure an agency meets its legal obligations rests solely with the person in bona fide control, who in this case was Mr Backhouse,” Ms Blake said.
“Agents must make sure there are proper processes and procedures in place to check that bond lodgements are made as soon as possible, or certainly within the 14-day time limit allowed.
“This is our third prosecution of an agency so far this year for late bond lodgements, which demonstrates how seriously we continue to take breaches of rules that exist to keep tenants’ money safe.”
More information on the obligations of real estate agents, sales representatives and property managers is available on the Consumer Protection website or enquiries can be made by email or by calling 1300 30 40 54.