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Years of alleged trust account issues have led the Malvern East business owner to face the state’s watchdog.
Victoria’s Department of Consumer Affairs has taken disciplinary action against David Mao, director of David Mao Real Estate Pty Ltd, alleging that he engaged in unprofessional conduct and is not a fit person to hold a licence.
The body claimed he failed to meet a range of requirements under the Estate Agents Act 1980, including not arranging for his trust accounts to be audited annually over several years and failing to notify the Business Licensing Authority (BLA) of a change to his registered business address.
This is the second time Mr Mao has ended up in the consumer affairs’ cross hairs, after a 2011 ruling saw his licence suspended for a period of three months.
At that time, the state found deficiencies in his trust account, dating to a period between 2007 and 2008. Mr Mao reimbursed $19,000 on 18 March 2008 to correct the deficiency, and was ordered to pay $5,000 to the Victorian Property Fund as a penalty in August 2011.
Now dealing with the body again, Mr Mao faces losing his licence either temporarily or permanently for the repeated offence.
Consumer Affairs Victoria director Nicole Rich said the allegations brought against Mr Mao this year showed that the body would continue to hold agents to account for poor conduct.
“Real estate agents operate in a position of trust within the community. They’re responsible for facilitating the biggest financial undertakings many people make in their lifetime – buying their own home,” she said.
“Consumer Affairs Victoria will continue to investigate and take action against agents who break that trust and tarnish the industry’s reputation.”
Ms Rich also commented that trust accounting failures can be an indication of wider failings by agents in meeting their responsibilities.
The matter was adjourned pending the Victorian Civil and Administrative Tribunal setting a date for a compulsory conference.
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