Compliance clampdown targets trust account audits

Consumer Affairs Victoria (CAV) is stepping up enforcement on estate agents and conveyancers who fail to meet their trust account obligations, helping protect funds held on behalf of homebuyers, renters and rental providers.

Trust accounts hold sales deposits, rent and maintenance fees. This money belongs to consumers, not the businesses managing it.

CAV's investigations into trust account audit breaches have resulted in more than $400,000 in fines since 2021, with more serious cases taken to the Victorian Civil and Administrative Tribunal for disciplinary action.

Recent changes to the law have also given the Business Licensing Authority the power to suspend an agent or conveyancer’s licence if they do not complete trust account audits.

Failing to arrange audits is a serious breach. It can also indicate broader management failures that can put consumers’ money at risk.

Estate agents have 3 months, and conveyancers 7 weeks, from the end of the financial year, to arrange and lodge trust account audits via myCAV.

The vast majority of property professionals do the right thing and manage their trust account obligations without concern. But if you manage trust accounts, it's up to you to understand your responsibilities.

Read CAV's advice on trust accounts for estate agents and conveyancers for more information.

CAV is currently taking legal action against the following estate agents and conveyancers. Disciplinary proceedings can lead to licence cancellation, suspension or conditions.