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The misuse of more than $930,000 in trust funds left clients unable to complete property transactions.
Consumer Affairs Victoria has revealed charges against Sunbury agent Syed Nasir Zafar and his company, Zafar Property Group Pty Ltd, due to alleged breaches of the Estate Agents Act 1980.
The watchdog is alleging Mr Zafar caused more than $930,000 in trust account deficiencies and fraudulently converted trust money for personal use between December 2019 and December 2020.
Consumer Affairs reported that Mr Zafar’s clients were unable to complete transactions for property due to the alleged offending, and they had launched the investigation following the receipt of complaints from sellers about dishonoured checks issued by Zafar Property Group.
Those checks related to deposits for the purchase of commercial property.
If found guilty, Mr Zafar could face fines ranging from $16,000 to $82,000 and two to 10 years’ jail time.
The maximum fines for companies misusing trust funds can reach over $164,000.
It was flagged that claims related to the allegations have been lodged with the Victorian Property Fund, with Consumer Affairs set to seek a compensation order to repay the fund on top of any penalties that the court may impose.
Nicole Rich, the director of Consumer Affairs Victoria, has reminded real estate agents that trust account money belongs to consumers. In the same vein, she stressed that agents misusing it would be held accountable.
“Trust account obligations are there to protect consumers when they entrust their money to an agent as part of a property transaction,” Ms Rich acknowledged.
“If you misuse trust account funds, you can face penalties including large fines, losing your licence to practise, or jail for more serious offences,” she advised.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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