A Perth real estate agency has been reprimanded and fined $5,000 by the State Administrative Tribunal, after admitting to improperly releasing a $50,000 deposit that should have remained in trust under Western Australia’s strata title laws.
- $5,000 fine and reprimand for agency formerly trading as Nicheliving Real Estate
- Deposit withdrawn from trust despite laws requiring it be held until plans registered
- Trust account protections are non-negotiable and essential to protect buyers
A Perth real estate agency has been reprimanded and fined $5,000 by the State Administrative Tribunal (SAT), after admitting to improperly releasing a $50,000 deposit that should have remained in trust under Western Australia’s strata title laws.
Australian Property Alliance Pty Ltd, formerly known as Nicheliving Real Estate, acted as agent for the sale of two proposed strata lots in Orelia in 2020. The buyers paid a $50,000 deposit, which the agency received into its trust account on 14 January 2020. Australian Property Alliance Pty Ltd has the same directors as the failed building company Projex Management & Construction – Nicheliving
Despite legal requirements that deposits for proposed strata lots be held in trust until the strata plan was registered, the agency withdrew the funds just nine days later and paid them to a builder engaged by the seller. This unauthorised withdrawal of client funds breached the Real Estate and Business Agents Act and failed to meet the required standard of due care, diligence and skill under the industry Code of Conduct.
The Tribunal endorsed agreed orders between Consumer Protection and the agency, noting that the improper release of the deposit was inconsistent with the Strata Titles Act, which prohibited any contract terms that attempted to waive or override trust account protections for buyers.
Commissioner for Consumer Protection Trish Blake said the outcome reinforced the critical importance of safeguarding buyers’ deposits and complying with trust account laws.
“Trust account rules are not optional – they are fundamental consumer protections. When an agent releases funds contrary to the law, it exposes buyers to unnecessary risk and undermines confidence in the real estate sector,” Ms Blake said.
“The law requires deposits for proposed strata lots to remain in trust until the plans are registered. These protections cannot be waived or contracted out of, and agents are expected to understand and follow these requirements.
“Western Australians should feel confident that their deposits are secure when buying property and Consumer Protection will continue to take action whenever trust account obligations are not met.”
More information about the obligations of real estate agents is available on the Department of Local Government, Industry Regulation and Safety’s Consumer Protection website
