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A failure to send tenant bonds to the Western Australia bond administrator on time has led to a Cannington agency copping a hefty fine.
Domain Elysium Pty Ltd and director Simon Backhouse were both reprimanded by Western Australia’s State Administrative Tribunal, after it was discovered that 14 tenancy bonds handled by the agency had been lodged up to 81 days past the deadline.
Backhouse and the agency were fined a total of $10,000 for the failure, with the agency on the hook for $10,000 and Backhouse copping a $4,000 penalty.
In Western Australia, agencies and their representatives must lodge tenancy security bonds within 14 days of receipt. A failure to do so leaves them liable for breaching the Real Estate and Business Agents and Sales Representatives Code of Conduct.
All together, the agency under control of Backhouse lodged bonds between five and 81 days late.
Though other representatives of the agency were responsible for some of the lodgments, Western Australia’s Commissioner for Consumer Protection, Trish Blake, said it was important for individuals in charge of real estate agencies to adequately supervise employees to ensure they comply with the law.
“Ultimately, the responsibility of making sure an agency meets its legal obligations rests solely with the person in bona fide control, who in this case was Mr Backhouse,” Blake said.
“Agents must make sure there are proper processes and procedures in place to check that bond lodgments are made as soon as possible, or certainly within the 14-day time limit allowed.”
This is Blake’s third prosecution of an agency so far this year for late bond lodgments, which she said showed “how seriously we continue to take breaches of rules that exist to keep tenants’ money safe”.
In June, a Perth agency called Limmybuild Realty was handed an $8,000 fine and copped an official reprimand for more than $14,000 in late bond lodgments.
Earlier in the year, in February, a Welshpool agency was also 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.
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