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A Maylands real estate agency and its supervisor have been penalised after failing to lodge tenancy bonds on time and recording the wrong dates upon submission.
Caputo & Clay Pty Ltd and the person in control of the agency, Michael Geoffrey Clay, have been fined $12,000 and $3,000, respectively, by the State Administrative Tribunal for failing to lodge tenancy bonds with the Bond Administrator within the required time limit and for recording dates incorrectly.
Between December 2017 and May 2018, the agency, formerly trading as Harcourts Integrity and currently trading as Perth Realty Group, collected nine bonds from tenants; however, it failed to lodge them within the required time, and had also incorrectly recorded the dates on which eight bonds were received by entering later dates in the BondsOnline system, according to a statement from Consumer Protection WA.
Mr Clay, as the person in control of the agency, breached the Code by “failing to take all reasonable steps to ensure that staff complied with the Code” with regard to the proper processing of bond payments, the group noted.
Commenting further on the penalties, Commissioner for Consumer Protection David Hillyard said delays in lodging bonds by real estate agents and property managers were unacceptable.
“Two weeks is ample time to transfer the funds from the agency’s trust account to the Bond Administrator’s account, especially now that it is done online,” Mr Hillyard said.
“It’s essential to ensure the security and safety of the tenants’ funds that the transfers are carried out as soon as possible and certainly no later than 14 days after receipt. Failing to do that may lead to disciplinary action being taken.
“It is a simple and important process for agents and their employees to accurately record the date the agency receives any part of a residential tenancy bond in the BondsOnline system. In this instance, the practices of the agency were not up to the standard the tribunal and I expect from the industry.
“Supervisors of agencies must have a system in place where these tasks are carried out in accordance with the Code of Conduct and staff are aware of their duties and responsibilities when processing bond payments.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
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