Compliance tips for agents from Office of Fair Trading Queensland

Compliance tips for resident letting agents and real estate agents

Real estate agents, residential letting agents, auctioneers and commercial agents must establish and maintain a trust account that complies with the Property Agents and Motor Dealers Act 2000 (the Act). A key requirement of the Act is for trust accounts to be audited and a report lodged with OFT within strict time limits.

While most auditors do the right thing, OFT has noted some auditors are failing to correctly address key requirements in their report. OFT has concerns about the standard and content of some trust account audit reports being lodged. This is a reminder of auditor responsibilities and requirements under the Act.

Enforcement action for licensees who breach the Act may include:

• infringement notices of up to $400
• prosecution in a magistrate’s court or the Queensland Civil and Administrative Tribunal.

The most common infringement issued is for licensees failing to lodge their audit report with the Chief Executive within the prescribed timeframes. Visit the OFT website for timeframes. 

For a residential letting agent, the PAMD Form 20a should state the amount of any commission or benefit the agent may receive in relation to ALL expenses incurred on behalf of an owner, including but not limited to:

• repairs
• maintenance
• pay television
• cleaning and linen.

The commission or benefit must be agreed to by the owner and can be expressed
as a percentage or dollar value.

To ensure transparency in operations, it is essential for agents (both real estate and residential letting) to remember that trust money is not available to the licensee’s creditors. All trust money must remain in the trust account until it is legally allowed to be paid out under the Act.

Detailed information on licence requirements and compliance for residential letting agents and real estate agents can be found on the OFT website - www.fairtrading.qld.gov.au

This information has been sourced directly from the July edition of the Smart Business Bulletin - www.fairtrading.qld.gov.au