South Perth real estate agency fined over trust account and property management deception

South Perth real estate agency fined over trust account and property management deception
Jessie RichardsonDecember 7, 2020

The Western Australian State Administrative Tribunal has fined a South Perth real estate agency $15,000 and its former property manager $8,000 for their actions surrounding the management of two rental properties and associated trust accounts.

Julia Barratt-Hill, a former property manager at Swan River Real Estate, was ordered to pay court costs of $1,000 in addition to the $8,000 fine after fabricating an owner's statement. She was also disciplined for failing to deal with rental payments in an "organised and competent way" and misleading property owners.

The owners believed their property had a tenant when it was vacant, and despite repeat requests to keep them informed, Barratt-Hill failed to provide them with information about their lease agreement. 

Prosser Real Estate Pty Ltd, which trades under Swan River Real Estate, was fined $5,000 in relation to the 2011 events and an addition $10,000 for unlawful dealings related to their trust accounts and failing to keep accurate and full accounts that could be audited. Their breaches were the result of Barratt-Hill's actions in 2009, 2010 and 2011.

Despite the directors paying back the money they withdrew from the trust accounts, with no clients losing money, Swan River Real Estate's licensee Lorraine Florence Prosser was fined $5,000 for failing to supervise the agency to a sufficient standard. The penalty was also a result of her failure to ensure Barratt-Hill, who was an employee of Swan River Real Estate from 2003 to 2011, complied with the industry Code of Conduct.

Swan River Real Estate was ordered to pay court costs of $2,500 in addition to its $15,000 fine

Commissioner for Consumer Protection Anne Driscoll said all licensed real estate agents and their employeers were obliged to adhere to all laws relating to their agency's operations.

“The basic foundation of the Code of Conduct is for agents to have fair, honest and transparent dealings with property owners at all times in terms of disclosure of accurate information about the tenancy, the provision of copies of lease agreements and the timely release of financial statements,” said Driscoll.

“It is also an obligation of licensed real estate agents to operate their trust and operating accounts in a way that complies fully with the law. Financial records should be kept up to date and organised in such a way that allows for easy checking and auditing.”

Editor's Picks