Property industry breaches and penalties
Unlicensed work
Unlicensed property agent work is against the law.
| Offence | Maximum penalty |
|---|---|
Working without a licence or registration | $30,960 or 2 years imprisonment |
Employing a person who in unlicensed and unregistered | $30,960 |
Selling, hiring or lending out a licence or registration | $30,960 or 2 years imprisonment |
Dealing with licences
Serious offences
We will cancel your licence if you’re convicted of:
- violent offences (including threats to use violence)
- fraud or dishonesty offences
- drug trafficking
- extortion
- arson
- unlawful stalking, intimidation, harassment or abuse
- an offence of a sexual nature.
You will have 14 days to return your licence to us. The maximum fine for failing to do so is $15,480.
Change of details
You must advise us in writing within 14 days about any changes to:
- personal details
- any aspect of your licence.
The maximum fine for failing to do so is $15,480.
Produce licence on request
| Offence | Maximum penalty |
|---|---|
Failing to show a licence or certificate of registration to an inspector | $15,480 |
Failing to show a copy of a licence or certificate of registration to a potential buyer, client or other party after they ask to see it | $15,480 |
Substitute licensee
You must follow the rules when appointing a substitute licensee. If you do not, you risk being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $15,480 |
Not lodging extension of appointment substitute licence for more than 30 days | $30,960 |
Acting as licensee while you have a substitute appointed | $30,960 |
Person in charge
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of place of business | $30,960 (individual) |
Having a real estate salesperson in charge of a place of business if their conditions or registration prohibit this | $30,960 (individual) |
Documentation
You must make sure that you:
- complete all of your documents correctly
- give copies to consumers when the law says you need to.
Appointment
| Offence | Maximum penalty |
|---|---|
Acting for a client without a written appointment to act | $30,960 |
Not giving a copy of the appointment to act | $30,960 |
Acting for more than 1 party to a transaction | $30,960 |
Not explaining the relevant details of a sole or exclusive agency appointment | $30,960 |
Supply of documents
| Offence | Maximum penalty |
|---|---|
Failing to include the warning statement in the required section of a sale contract | $30,960 |
Disclosure
| Offence | Maximum penalty |
|---|---|
Non-disclosure of benefit to buyer | $30,960 |
Not disclosing a beneficial interest to a seller | $30,960 or 3 years imprisonment |
Charging a buyer’s premium on goods connected to a real property without getting the consent of the owner and/or not disclosing a buyer's premium is payable on goods | $30,960 |
Commission
| Offence | Maximum penalty |
|---|---|
Claiming commission worked out on an amount more than the actual sale price | $30,960 |
Retaining or suing for commission when not entitled (for example, not licensed or not authorised to act) | $30,960 |
Trust account offences
It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.
Trust money
| Offence | Maximum penalty |
|---|---|
Wrongful conversion and false accounts | $154,800 or 5 years imprisonment |
Unauthorised use of trust account | $30,960 or 2 years imprisonment |
Trust monies are not banked immediately (to trust account) | $30,960 or 2 years imprisonment |
Banking of non-trust monies to a trust account | $30,960 or 1 year imprisonment |
Licensee does not account to client | $30,960 or 2 years imprisonment |
Audit reports
| Offence | Maximum penalty |
|---|---|
Failing to appoint an auditor | $30,960 or 1 year imprisonment |
Failing to lodge audit report within time limit | $30,960 or 2 years imprisonment |
Failing to lodge a final audit within 2 months of ceasing to be a principal licensee | $30,960 or 2 years imprisonment |
Offences by auditors
| Offence | Maximum penalty |
|---|---|
Auditor does not file advice immediately of irregularities to Chief Executive | $30,960 or 1 year imprisonment |
Auditor fails to notify Chief Executive when denied access to other records | $30,960 or 1 year imprisonment |
Auditor fails to supply report to licensee | $30,960 or 1 year imprisonment |
Inspector's powers
Inspectors have the legal authority to make sure that you don’t break the law. You must follow their lawful directions, or you risk a fine.
| Offence | Maximum penalty |
|---|---|
Failure to comply with a warrant, produce documents or provide information to an inspector | $15,480 or 1 year imprisonment |
Failure to give name and address to an inspector in certain circumstances | $7,740 |
Enforceable undertaking
An enforceable undertaking is:
- a written promise by a business not to keep breaking the law
- an alternative to court action.
Find out more about enforceable undertakings