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A Springvale agent’s alleged misuse of rental bond money could see him disqualified from holding a real estate licence.
Consumer Affairs Victoria has delivered a strong warning to real estate agents across the state, stating that agents “must comply with their trust account responsibilities or face serious legal consequences”.
The warning comes in the wake of recent allegations against Xuan Sang Nguyen, the director of the former (and deregistered) southeast Melbourne agency SN Newton Real Estate.
Consumers Affairs Victoria alleged that Nguyen “had failed to meet a range of conduct and trust account management requirements under the Estate Agents Act 1980, including failing to pay property owners the rent payments he was receiving on their behalf from renters and not getting his trust accounts audited”.
The consumer watchdog stated they are taking disciplinary action against Nguyen on the grounds that he allegedly did not meet his professional obligations to “act fairly, honestly and with due skill, care and diligence”.
They aim to permanently disqualify Nguyen from holding an agent’s licence. A directions hearing will take place on 16 April at the Victorian Civil and Administrative Tribunal.
Nicole Rich, director of Consumer Affairs Victoria, stated: “Everyone deserves to know money held in trust by real estate agents on their behalf is safe and secure.”
“Agents must manage their trust accounts as a priority,” Rich said. “If they fail to meet their trust account obligations, or other responsibilities, we will take action.”
The consumer body reminded agents that trust account obligations are crucial safeguards to ensure that client money is kept safe during all sale and rental transactions.
Looking forward, Consumer Affairs Victoria stated they would continue to target mismanagement of trust accounts by real estate agents, noting that this offence is often indicative of wider failings in meeting professional responsibilities.
Nguyen is not the only agent to be targeted by the consumer watchdog, with March seeing Barry Plant Manningham face underquoting charges by Consumer Affairs Victoria.
A Melbourne builder is also facing 28 charges for taking $100,000 in deposits for jobs that he failed to complete.
Meanwhile, Western Australia’s Commissioner for Consumer Protection recently issued fines to a Perth agent for representing herself as a real estate agent while unlicensed.
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