Consumer Affairs Victoria takes eight agents and conveyancers to task over missing audits

Consumer Affairs Victoria (CAV) has started legal action against eight property professionals, two estate agents and six conveyancers, over trust account audits it alleges were not submitted, and has warned the sector that a missed audit can now cost a business its licence.

The regulator said on 15 October that it is stepping up enforcement against estate agents and conveyancers who do not meet their trust account obligations, and that its investigations into audit breaches have produced more than $400,000 in fines since 2021. More serious cases have gone to the Victorian Civil and Administrative Tribunal for disciplinary action.

What CAV is alleging

CAV published a list of the eight matters it is pursuing. The two estate agent matters cover alleged audit failures for the periods 2018 to 2024 and 2020 to 2025. The six conveyancer matters cover periods running from 2019 to 2025 and, in one case, 2022 to 2025. In one conveyancer matter an auditor had been engaged, but CAV said insufficient records were provided for the audit to be completed.

The matters are allegations and have not been determined.

Licence suspension now on the table

CAV said recent changes to the law have given the Business Licensing Authority the power to suspend the licence of an agent or conveyancer who does not complete a trust account audit. Disciplinary proceedings can also lead to licence cancellation or conditions.

"Failing to arrange audits is a serious breach," CAV said. "It can also indicate broader management failures that can put consumers' money at risk."

The regulator reminded the sector that trust accounts hold sales deposits, rent and maintenance fees. "This money belongs to consumers, not the businesses managing it," it said.

The deadlines

Victorian estate agents have three months from the end of the financial year, and conveyancers seven weeks, to arrange their trust account audits and lodge them through myCAV.

CAV said the vast majority of property professionals manage their trust account duties without concern. "But if you manage trust accounts, it's up to you to understand your responsibilities," it said, pointing agents to its trust account guidance for estate agents and conveyancers.