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With a number of legal actions launched in recent months, one state is sending a clear message about the importance of auditing trust accounts.
Victoria has another real estate professional in its crosshairs, now pursuing action against a Cranbourne agent who allegedly failed to have his company’s trust accounts audited for a period of four years.
The state’s Consumer Affairs watchdog alleges that Carmelo Sottile, 50, the principal agent at Builders Property Direct, was repeatedly reminded and sent follow-ups to have the agency accounts annually audited for the period of 2020 to 2023. Sottile, however, never confirmed that the audits took place.
With the agency alleging that the trust accounts were not audited over this period, they charge that Sotille breached the state’s regulations by:
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Failing to act fairly and honestly at all times.
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Engaging in conduct that was unprofessional or detrimental to the industry’s interests and reputation.
“Trust account audits are not only an administrative requirement, but a key responsibility for agents to meet their legal obligations. Failing to lodge a trust account audit report can be a sign of potential deeper problems. We treat breaches seriously and will take appropriate action,” a statement from the watchdog read.
In announcing the action against Sottile, the state acknowledged that he is not the only real estate agent to land in hot water of audit failures.
“The matter is one of several similar legal actions we are pursuing to crack down on trust account audit failures,” a statement acknowledged.
Recently, the agency took action against a Romsey business owner who allegedly failed to have the agency’s trust accounts audited within three months at the end of each financial year as legally required. In this instance, CAV is seeking the suspension or cancellation of the agent’s licence.
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