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With yet another major trust account fraud brought to light, industry leaders have said stricter penalties are needed to prevent further damage to the reputation of real estate professionals.
The comments followed the release of details surrounding a new fraud case, in which a former real estate agent has been banned from holding a real estate licence for eight years due to swindling $50,000 of trust account money.
Afif Shaba authorised his business, Northern Real Estate Pty Ltd, to fraudulently use tenants' rent that was owing to investors received between January and November 2012, the Victorian Civil and Administrative Tribunal (VCAT) found.
Mr Shaba was the sole director and the VCAT found him guilty of conduct that made him unfit to hold a licence. However, the ban is only for a period of eight years.
Speaking to Real Estate Business, Ray White Surfers Paradise chief executive Andrew Bell said he does not think the penalty is enough.
“If you’re dishonest you are dishonest,” he said.
“When we are working in a field of responsibility, where we are handling other people’s money, I just don’t think you should be given a second chance.
“There are other ways to earn a living; they can do other things where the temptation is not in front of them - people who do that once, it is in their disposition,” he added.
Marshall White Toorak director and auctioneer Marcus Chiminello, who ranked in the top five of the Real Estate Business Top 100 Agents 2014, said a lot of real estate agencies, in the public’s perception, are not held in the highest regard.
“These types of agents acting fraudulently don’t do us any good, and don’t help enhance the reputation of real estate agents in the marketplace,” he told Real Estate Business.
“There should be harsher penalties or absolute zero tolerance, particularly when dealing with other people’s money.
“You should never be allowed to ever hold a real estate licence or sub-agent licence in your lifetime,” he added.
- <p>Ray White Gold Coast talking about shonky Agents ... two words Michael Kollosche</p>0
- <p>I agree i know of an agent in Queensland was given a real estate principal licence to run a franchise office and is a convicted rapist who spent 3 years in jail.He was all so sacked from the car industry for tacking cash under the table. May be leopards do change there spots. As a home owner would not want that agent doing open homes in my home.The office of fair trading hand out licences like lollies.</p>0
- <p>The problem starts with the granting of licences to these people. It needs to be harder to get a real estate licence or there should be a separate licence for the handling of trust accounts.</p>0
- <p>I agree with Marcus also, I took the time to report to Consumer Affairs Victoria and also the Hon. Heidi Victoria Minister for Consumer Affairs a agent who used trust account monies, and guess what today he is still a licenced estate agent, according to correspondence from the Minister office all he received was a warning! Clean up the industry of these few fraudulent agents and real estate agents may then be respected.</p>0
- <p>I agree with you Marcus. Zero tolerance and clean up the industry. Most of us are honest and transparent and it only takes a few dishonest Agents to tarnish our efforts in general.</p>0
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