New rules to combat real estate fraud

The State Government has moved to combat property fraud by toughening rules on identifying sellers - action required after owners of a Ballajura property, who were living overseas, became victims of identity theft and had their home sold without their knowledge or permission.

  • Codes of conduct strengthened for real estate and settlement agents
  • Prevent properties going on the market without owner's knowledge

The State Government has moved to combat property fraud by toughening rules on identifying sellers - action required after owners of a Ballajura property, who were living overseas, became victims of identity theft and had their home sold without their knowledge or permission. 

It was the second successful fraudulent sale of a Western Australian property after a home in Karrinyup was sold under similar circumstances last year.

Commerce Minister Simon O'Brien said the codes of conduct to both real estate and settlement agents had been strengthened.


"Agents will be required to undertake thorough identity verification checks to ensure they are dealing with the real owner of the property," Mr O'Brien said.


"Guidelines issued by the Commissioner for Consumer Protection advise agents to carry out a 100-point client identification verification to certify that they are dealing with the true owner(s) or their authorised representative." 


The Minister said officers from the Property Industries Branch of Consumer Protection would conduct regular visits to agents to ensure they have the necessary processes in place to conform to the new requirements in the code of conduct.


"Complying with the code of conduct is a strict requirement of their licence, so it's essential for all real estate and settlement agents to take immediate steps to establish strong identity verification procedures in their office to avoid future fraud," he said.


"These checks are designed to detect scams at the earliest stage and are complementary to measures put in place by Landgate for transactions involving owners living overseas.
 

"We acknowledge the support of REIWA and the Australian Institute of Conveyancers in working closely with the State Government to develop these changes."

Fact File

Minister's office - 9213 6400