- Perth real estate agency, licensee fined $4,000 for late bond lodgement
- Incorrect information provided to tenant about status of the bond
- Case highlights importance of due diligence to avoid compliance breaches
A Perth real estate agency and its licensee have been reprimanded and fined $4,000 by the State Administrative Tribunal (SAT), after admitting to a breach involving tenancy bond lodgements.
Dilleen Realty SA Pty Ltd was reprimanded and fined $2,000 for delaying the lodgement of a residential tenancy bond for an East Perth property by 155 days and for providing incorrect information to the tenant in relation to the lodgement.
Under the Real Estate and Business Agents Act 1978 and the industry Code of Conduct, agents must lodge tenancy bonds with the Bond Administrator within 14 days of receiving the funds.
In addition to the late lodgement, the agency told the tenant that a “system error” had prevented the earlier attempt from going through and that the tenant would need to approve it again. The tenant was also incorrectly advised that the lodgement could not be backdated to reflect the start date of the tenancy. When the tenant contacted the Bond Administrator, she was advised that the bond had not previously been lodged.
Edward James Dilleen, as the person in bona fide control of the agency at the material time, was also reprimanded and fined $2,000 for failing in his duty to ensure compliance with statutory obligations by every person employed or engaged by the business.
In mitigation, the SAT acknowledged the respondents advised that they had taken steps to improve internal processes and procedures to strengthen compliance and oversight. It also noted a new licensee was appointed to the Perth office to ensure appropriate supervision and adherence to regulatory requirements.
Commissioner for Consumer Protection Trish Blake said the outcome sent a clear message about the importance of due diligence.
“Bond handling obligations are fundamental to ensuring tenants and landlords are not exposed to unnecessary financial risk,” Ms Blake said.
“Even in the absence of financial loss, these breaches represent serious failures of professional responsibility.”
Ms Blake said real estate professionals must understand that compliance is not optional, and agencies and directors will continue to be held to account when they fall short.
More information on the obligations of real estate agents is available on the Department of Local Government, Industry Regulation and Safety’s Consumer Protection website or enquiries can be made by emailing consumer@lgirs.wa.gov.au or by calling 1300 30 40 54.
Media Contact: cpmedia@lgirs.wa.gov.au