Real estate agencies across NSW have been hit with more than $200,000 in fines as part of a major NSW Fair Trading compliance operation targeting the management of client funds.
NSW Fair Trading’s Strata and Property Taskforce recently wrapped up a statewide operation which focused on agents entrusted with holding consumers’ money. The compliance operation uncovered dozens of businesses and licence holders falling short of their legal and professional obligations.
“When people hand over funds to a real estate agent, they have a right to expect that money will be properly managed and protected,” said said Minister for Better Regulation and Fair Trading, Anoulack Chanthivong.
“While the vast majority of agents do the right thing, those who repeatedly fail to comply with trust account requirements will face the consequences.”
A Western Sydney real estate agency lost its licence and was fined $22,000 after it repeatedly failed to provide mandatory trust account audits despite multiple 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 same breach, it was further fined $11,000, and its Licensee in Charge was directed to complete extra training.
The Property and Stock Agents Act audit undertaken by the Taskforce targeted higher-risk businesses and licence holders using intelligence-led compliance data. While most agents comply with their trust account obligations, the audit identified a small number who did not and reinforced industry standards.
“Trust accounts exist to safeguard consumers. Agents who fail to meet their legal obligations can expect strong enforcement action,” said Minister Chanthivong.
“These compliance activities are part of the Minns Labor Government’s commitment to strengthening consumer protections and maintaining confidence in the NSW property market.”
The statewide initiative resulted in 34 businesses being put on notice and facing potential licence suspension, 41 overdue audits being submitted, more than $200,000 in fines, 32 warnings, three industry bans and six mandatory training orders.
“Trust account audits ensure money being held on behalf of consumers is properly managed and accounted for,” said NSW Strata and Property Services Commissioner, Angus Abadee.
“While most property professionals comply with their obligations, those who ignore trust account requirements risk significant consequences.
“These outcomes send a clear message that businesses which disregard trust account obligations risk significant penalties and licence sanctions.”
Regulatory outcomes may be published on the Government’s Name and Shame Register, helping consumers make informed decisions and promoting transparency across the property sector.
The Government has invested $8.4 million in the Strata and Property Taskforce to bring together specialist inspectors, investigators and dispute resolution experts to crack down on misconduct and lift professional standards to support consumers.
Consumers who suspect misconduct should report it to NSW Fair Trading online at www.nsw.gov.au/fair-trading.
