Real Estate Agency Ordered to Pay Fine for Trust Account Violations

One Up Realty Limited has been ordered to pay a fine of $18,000 by the Real Estate Authority (REA) for breaches of trust account audit regulations. The Agency was found guilty of misconduct under the Real Estate Agents Act 2008.

The Tribunal's decision comes after a series of reminders from the REA regarding its obligations to comply with the Audit Regulations and the Act. Despite these warnings, the Agency failed to appoint an auditor for its trust account until late in 2023, resulting in non-compliance with audit requirements over several years.

REA Chief Executive Belinda Moffat emphasized that this case underscores the critical importance of compliance with trust account audit regulations by real estate agencies. 'Real estate agencies handle significant client and customer funds,' she said. 'Trust account obligations exist for the protection of consumers, and their funds. If trust accounts are not managed correctly, it could result in financial loss to consumers, reputational damage, and a loss of trust and confidence in the industry as a whole.'

The Tribunal's decision places the fine at the higher level of available penalties due to the Agency’s admission of liability and cooperation with the Authority. However, they also noted that breaches of audit regulations must be regarded as serious.

REA Trust Account Manager, Jane Doe, stated, 'This case serves as a reminder for all real estate agencies to ensure their trust accounts are audited in accordance with the Act and Audit Regulations. It’s crucial to have good systems in place for dealing with client and customer money, and sound procedures for oversight of the handling of funds.'

The REA has also issued guidance on best practices for managing trust accounts, emphasizing the importance of appointing qualified auditors and adhering to audit requirements.