Real estate agency fined more than $10,000

Having been convicted of 26 counts of failing to lodge bonds collected for rentals within the required 14 days, Century 21 Wentworth Real Estate in East Perth has been fined more than $10,000 after previous warnings, and it is apparent that landlords, or self-managing investors, can also face this fine.

As well as being fined $10,400 for failing to lodge security bonds with the Bond Administrator, Wentworth Mutual Investment Management Pty Ltd, trading as Century 21 Wentworth Real Estate, was also required to pay $643 in costs on 8 November 2013 by the Perth Magistrates Court.

The agency had taken between 17 and 53 days to lodge 26 bonds, totalling $39,200, according to lawyers for Consumer Protection.

The bonds had been collected during March and April 2012.

Landlords who self-manage and fail to lodge bonds collected for rentals within the time frame would also face penalties.

Century 21's Chairman Charles Tarbey told Property Observer that they had taken steps to fix the issue.

“I purchased the company in December 2011 and as soon as we were made aware of the issue, the company took immediate steps to rectify it," said Tarbey.

In May 2013, Property Observer reported on a Century 21 office in Perth taking an average of three months to lodge 14 security bonds. 

Maida Vale-based Dalefin Holdings Pty Ltd, trading as Century 21 Eastbelle Realty, was fined $8,000 for the late bond lodgements.

Three other companies were at that time on the radar for similar breaches:

• A real estate agency was fined $15,000 in December 2011 over 51 late lodgements that were 17 to 72 days late
• A real estate agency was fined $10,000 in April 2013 over 27 late lodgements that were, on average, 38 days late
• A property management company was fined $10,000 earlier this month over 37 late lodgements that were 17 to 46 days late

In April this year, Consumer Protection warned real estate agents, property managers and landlords about late bond lodgements after Dalgon Pty Ltd trading as Acton West, now Acton Cottesloe, pleaded guilty on 5 April 2013 to 27 charges of failing to lodge security bond money as soon as practicable.

Commissioner for Consumer Protection Anne Driscoll urged landlords to comply with the law.

“Consumer Protection will take action against agents or landlords who retain these funds for an unreasonable amount of time and fail to comply with the law,” Driscoll said.

Century 21 have been contacted for comment.