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A Wembley-based agency has had its operations suspended and a supervisor appointed for continuing to operate in breach of relevant real estate laws.
The Western Australian Commissioner for Consumer Protection brought the action against IJR Property Pty Ltd after it argued the agency’s sole representative, Sarah Mack, did not have the appropriate licences to act as director of the agency, and had not made arrangements to appoint a director who held appropriate licences.
The commissioner relied on section 93 of the Real Estate and Business Agents Act 1978, which states that where the State Administrative Tribunal, on the application of the commissioner, is satisfied that there are reasonable grounds for believing that an agent is, for any reason, incapable of properly conducting his business, or is not conducting it in accordance with this act, can suspend an agent and restrain the agent and any bankers from dealing in all or any of the agent’s bank accounts in making its case.
In this instance, the commissioner argued that there were reasonable grounds to believe that the agent was not conducting the business in accordance with the act.
State Administrative Tribunal president Janine Pritchard accepted that Ms Mack has been a director of IJR Property since 13 April 2017, with the business holding a real estate and business agent’s licence and a triennial certificate.
While Ms Mack herself held a real estate and business agent’s licence and triennial certificate until August 2019, it was highlighted that the triennial certificate then expired, and she had not applied for renewal of the certificate, with President Pritchard stating that Ms Mack “also does not appear to hold a certificate as a real estate or business sales representative”.
“In 2019, the commissioner became aware that the respondent did not have a licensed director or person in bona fide control,” the president stated, as Ms Mack was the only director of IJR Property and the only person licensed as a real estate and business agent.
At that point, the commissioner did commence proceedings for the appointment of a supervisor, but it was ultimately not necessary to pursue because IJR appointed another person as a director, who held the appropriate licence and certification.
In December 2019, that person was removed, and it appeared another licensed person was appointed in March 2020, before that second person was also removed as director on or about 1 July 2020.
“On the basis of the material before the Tribunal, there is nothing to indicate that since 1 July 2020, the respondent has had a director who has held the licensing and certification requirements that the act requires,” the president considered.
While agents are granted a three-month period of grace in the instance of licensed directors dying or withdrawing from a business, this time period for the third instance had now elapsed (as at 20 September 2020), with no indication that a new licensed director has been appointed.
According to the president, inquiries and investigations were undertaken by the commissioner to ascertain whether the agency had continued to operate, with evidence suggesting this to be the case, “as there seems to have been active transactions on the trust account for the receipt of rent”.
“Consequently, on and from 1 October 2020, the respondent has been carrying on business other than in compliance with the requirements of the act,” the president said.
It led to the tribunal ordering the suspension of IJR Property from carrying out any business, the commissioner being granted the ability to appoint a supervisor to IJR Property, and the prevention of IJR Property from dealing with “all or any of the bank accounts related to or for the purpose of the respondent’s practice as an agent”.
ANZ Bank has also been restrained from dealing with accounts related to the agency.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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