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$200k fines: NSW agents caught mishandling consumer money
More than $200,000 in penalties have been handed to NSW agents following a statewide audit of trust accounts and consumer money management.
The operation found widespread compliance failures, with 34 businesses facing potential licence suspension, 41 overdue audits lodged, 32 warnings, 3 industry bans, and 6 mandatory training orders.
In total, NSW Fair Trading’s Strata and Property Taskforce handed more than $200,000 in penalties.
A Western Sydney agency lost its licence and was fined $22,000 after repeatedly failing to submit mandatory trust account audits despite multiple reminders and deadline extensions.
Additionally, the business was banned from the industry and barred from directing, managing or operating a licensed property business until the outstanding audit is completed.
Another Sydney agency was fined $5,500 for failing to submit a trust account audit, then hit with a further $11,000 penalty after repeating the breach, while its licensee in charge was ordered to complete additional training.
The watchdog said the statewide operation zeroed in on higher-risk agents identified through compliance intelligence, with trust account audits used to verify that client funds were handled correctly and protected from misuse.
NSW Strata and Property Services commissioner Angus Abadee said most agents were meeting their trust account obligations, with the audit flagging a small number of compliance issues and reinforcing industry standards.
“Trust account audits ensure money being held on behalf of consumers is properly managed and accounted for,” Abadee said.
“These outcomes send a clear message that businesses which disregard trust account obligations risk significant penalties and licence sanctions.”
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the government would continue to act against misconduct and poor compliance practices that put consumers’ money at risk.
In total, the NSW government has invested $8.4 million in the Strata and Property Taskforce in a bid to strengthen compliance, investigate misconduct and lift professional standards across the industry.
“When people hand over funds to a real estate agent, they have a right to expect that money will be properly managed and protected,” Chanthivong said.
“Trust accounts exist to safeguard consumers. Agents who fail to meet their legal obligations can expect strong enforcement action.”
Additionally, the government has introduced its fourth and final tranche of legislation to NSW Parliament to make apartment living fairer.
Previous legislation has strengthened accountability for strata managers, increased protections for owners facing financial hardship and given NSW Fair Trading greater powers to enforce maintenance and repair obligations.
Reforms were also introduced to safeguard strata levies and insurance commissions, while making minor renovations and sustainability upgrades such as solar panels and electric vehicle (EV) charging easier.
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