Victorian agent suspended for failing to control agency
The Victorian Civil and Administrative Tribunal (VCAT) have suspended a Langwarrin real estate agent for failing to exert adequate control over her agency.
Gayle Stewart’s real estate licence has been suspended until January 2015 after she failed in a number of her duties as officer in effective control of 11th Empire Pty Ltd, trading as LJ Hooker Langwarrin.
The company traded from mid-2012 to February 2014.
Consumer Affairs Victoria suspended Stewart and 11th Empire in July 2013, before filing VCAT proceedings.
VCAT suspended Stewart for a further nine months. In total, Stewart's licence will was suspended for a total of 18 months.
The company went into liquidation after their licences were suspended.
Stewart was found to have failed to supervise the agency business, which she was responsible for, as well as failed to establish procedures to ensure that business was done legally and with good practice and to monitor the business to ensure compliance.
Stewart did not make proper enquiries. For instance, when co-signing cheques to a value of more than $100,000 from the agency’s general account, even when she doubted the honesty of the person receiving the funds.
She had also signed cheques after funds were incorrectly put into the general account, rather than the agency’s trust account. While she did not know this at the time, she was told she should have conducted further enquiries. Stewart was also reprimanded for failing to control the real estate agency.
VCAT warned that the officer in effective control’s role is pivotal to protect the public. Those in this role who are not in effective control should resign, even when acting honestly.