Trust audit failures under scrutiny in fresh legal action

CAV said the alleged trust compliance failures could compromise consumer funds, with disciplinary proceedings potentially resulting in licence suspension, cancellation, or the imposition of conditions.

The watchdog said that under the law, real estate agents and conveyancers must comply with strict account-keeping and annual audit requirements to safeguard the significant sums held on trust for clients during property sales and rental transactions.

CAV said failing to arrange trust account audits was a serious breach, indicating broader management failures and putting consumer funds at risk.

“Trust accounting is not a mere administrative task. It is one of the key protections for clients entrusting their funds with their estate agent or conveyancer and a core professional duty,” a CAV spokesman told REB.

In total, two real estate agencies and six conveyancers are now under the Victorian watchdog’s crosshairs.

Eric Kontek and Eric Kontek Real Estate, based in Keilor Lodge, allegedly failed to submit trust account audits between 2018 and 2024.

VIEW ALL

Xiangjun Li, director of Glen Waverley-based Real Estate Logic, allegedly failed to submit trust account audits from 2020 to 2025.

Thomastown conveyancer Mary Kontogiorgis, who trades as A.M.A Conveyancing, allegedly failed to lodge audits between 2019 and 2025.

Bien Van Nguyen, who operates Oceantralian Conveyancer in Sunshine, allegedly failed to submit trust account audits from 2020 to 2025.

Tooradin conveyancer Sheree Corbyn and Matilda Conveyancing Services allegedly failed to meet audit requirements between 2019 and 2025, despite engaging an auditor and providing insufficient records.

Angela Pisano, operating under ARC Conveyancing Services, allegedly failed to submit trust account audits from 2019 to 2025.

AM Property Transfers operator Amanda Mahoney allegedly failed to lodge trust account audits between 2019 and 2025.

Helen Birbilis and National Conveyancing Solutions allegedly failed to submit trust account audits from 2022 to 2025.

CAV said recent changes to the law in June this year also gave the Business Licensing Authority the power to suspend an agent’s or conveyancer’s licence if they don’t complete trust account audits.

“Consumer Affairs Victoria’s new regulatory priorities for this year show that this remains a top priority. We’ll continue to take action where necessary to make sure consumer money is handled properly,” the spokesman said.

Since 2021, CAV has issued more than $400,000 in fines for trust account audit breaches and referred more serious cases to the Victorian Civil and Administrative Tribunal for disciplinary proceedings.

While most property professionals comply with their trust account obligations, the watchdog said it won’t let bad operators slip, noting that anyone managing client funds must understand and fulfil their legal responsibilities.

“We’ll be working closely with the Authority to make sure poor conduct is weeded out and doesn’t undermine trust in the majority of agents who do the right thing,” it said.

This article first appeared on Lawyers Weekly’s sister brand, REB.