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A Perth area agency and its director have been handed penalties for delaying to lodge tenancy bonds with the state’s bond administrator.
The Welshpool agency that is registered as Honsun Realty Pty Ltd and run by director Riqui Li has been fined a total of $8,000 for neglecting to pass along more than $30,000 in bond money from tenants within the 14-day time limit that is required under Western Australian law. The fine was split equally, with Ms Li and the agency copping $4,000 each.
The State Administrative Tribunal (SAT) heard that on 24 occasions between February 2021 and January 2022, the agency failed to deal with security bonds received for residential rental properties within the required time frame.
As Ms Li was responsible for the business, the SAT deemed it necessary to dole out a penalty to the director for not taking reasonable steps to ensure her employees complied with Residential Tenancies Act (RTA) and Code requirements.
Western Australia’s Commissioner for Consumer Protection, Patricia Blake, noted that to be in charge of a real estate agency is to take responsibility for the large sums of money that change hands through the course of property transactions. As such, they will face consequences if agencies break the rules.
“The RTA is clear. Agents must lodge bonds with the bonds administrator as soon as practicable, or in any event within 14 days of receipt,” Ms Blake said.
“These failings and the subsequent disciplinary action can result in an expensive lesson for agents. Also, there is a risk that the agency’s reputation and standing in the community is tarnished, and their licence may be put in jeopardy,” the consumer watchdog warned.
“The process to lodge bonds is simple and straightforward, so it couldn’t be made any easier. Compliance with the law is essential to ensure the security and safety of tenants’ funds,” Ms Blake added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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