Macedon Ranges estate agent to appear at VCAT over alleged trust account audit failures

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Date
17 September 2024
Category
Court actions News alerts

We’re taking disciplinary action against an estate agent who we allege deliberately failed to comply with her trust account audit obligations over four years.

Debra Lawry, 54, of Kyneton, was the Officer in Effective Control of Bovicelli Investments Pty Ltd (ACN: 634 809 000) trading as Ray White Romsey, between 2019 and 2023, when the agency did not have its trust accounts audited within three months of the end of each financial year as legally required.

Our action alleges that Ms Lawry continued to fail to have the trust accounts audited after multiple notices, warnings and fines, and even after telling our officers on one occasion that she was in the process of arranging an auditor.

Making sure trust accounts are audited by an approved auditor is a key legal requirement for estate agents under the Estate Agents Act 1980, and not doing so is a serious breach of their regulatory responsibilities.

We’re seeking the suspension or cancellation of Lawry’s and Bovicelli's estate agent licences, on the grounds that they have allegedly: 

  • failed to exercise due skill, care and diligence in performing their functions
  • engaged in conduct that was unprofessional or detrimental to the industry’s reputation or interests, and
  • are not ‘fit and proper persons’ to hold an estate agent’s licence.

Consumer Affairs Victoria Director Nicole Rich said the possibility of an agent losing their licence reflected the importance placed on meeting audit obligations.

‘Ensuring trust accounts are audited may seem like a lesser responsibility compared to managing trust money, but it is a key protection for consumers and skipping audits can be indicative of wider problems in how an agency is meeting its other obligations,’ she said.

‘We’ll continue to focus on making sure agents meet all their legal requirements. Those who don’t will face the consequences, including potentially being barred from working in the industry.’

A directions hearing for the matter will be heard on 24 September.

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