Real estate agencies across NSW have been hit with more than $200,000 in fines following a statewide compliance operation targeting the management of money held on behalf of property buyers, sellers and owners.
NSW Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the government would take action against businesses that put consumers’ money at risk. “The Minns Labor Government will not tolerate misconduct or poor compliance practices that put consumers’ money at risk,” Chanthivong said.
“When people hand over funds to a real estate agent, they have a right to expect that money will be properly managed and protected.”
“Agents who fail to meet their legal obligations can expect strong enforcement action,” he added.
NSW Fair Trading’s Strata and Property Taskforce targeted higher-risk real estate businesses and licence holders as part of an intelligence-led operation examining compliance with mandatory trust account requirements.
The operation resulted in 34 businesses being placed on notice of potential licence suspension, 41 overdue audits being submitted, more than $200,000 in fines, 32 warnings, three industry bans and six mandatory training orders.
One Western Sydney real estate agency lost its licence and was fined $22,000 after repeatedly failing to provide mandatory trust account audits despite several reminders and deadline extensions.
The business was also disqualified from the industry and barred from directing, managing or operating a licensed property business until the outstanding audit is completed.
Another Sydney agency was fined $5,500 for failing to submit a required trust account audit. After repeating the breach, it received a further $11,000 fine, while its Licensee in Charge was ordered to undertake additional training.
NSW Strata and Property Services Commissioner Angus Abadee said trust account audits were an important safeguard for consumers.
“Trust account audits ensure money being held on behalf of consumers is properly managed and accounted for,” Abadee said.
“While most property professionals comply with their obligations, those who ignore trust account requirements risk significant consequences.”
The government said the compliance operation was focused on businesses identified through intelligence and compliance data as presenting higher risks.
Trust accounts are used by property agents to hold money belonging to clients, making proper auditing and record-keeping an important consumer protection measure.
The enforcement action comes as the Minns Government continues its broader reforms of NSW’s property and strata sectors, including increased penalties for conflicts of interest, stronger protections for owners experiencing financial hardship and new powers for NSW Fair Trading to address failures to maintain and repair common property.
The government has invested $8.4 million in the Strata and Property Taskforce, bringing together specialist inspectors, investigators and dispute-resolution experts.
Consumers who suspect misconduct by a property professional can report concerns to NSW Fair Trading.
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