22/05/02
The Real Estate and Business Agents' Supervisory Board (REBA) had acted promptly to help Western Australian consumers following complaints about Floreat real estate agent Want and Co, Consumer Protection Minister John Kobelke said today.
REBA was made aware of concerns about Want and Co late in the afternoon of Thursday, April 18, after a call from a consumer concerned the real estate agency had closed its doors and would not answer its phone.
The board immediately started action that led to the suspension of the real estate agency's licence.
Mr Kobelke congratulated REBA for its fast action that had resulted in the licence suspension within four working days.
"This is in stark contrast to the way the last Liberal government handled matters concerning trust accounts in the finance broking industry," he said.
During its investigation, the board became aware that there were insufficient funds in the real estate agent's trust account to cover a $30,000 cheque. It also found the company's auditor was having difficulty completing the annual audit required under the Real Estate Act.
REBA obtained a warrant and interviewed the real estate agency's director, who admitted there was about $300,000 missing from the trust account.
"Although the real estate agent's company had been deregistered by the Australian Securities and Investment Commission in February, I am advised that this was a routine process undertaken after the company failed to lodge an annual return," he said.
"ASIC deregistered over 27,000 companies that month for failing to lodge returns on the basis that it believed they were dormant and inactive.
"The real estate agency's company was not under any investigation by ASIC."
Mr Kobelke said despite this, REBA was arranging with ASIC to have automatic notification of changes to real estate company registrations as soon as they occurred.
He said after problems with the trust account had been identified, the Department of Consumer and Employment Protection and REBA were helping consumers access the real estate fidelity fund for reimbursement, where appropriate, of any financial loss they may have suffered in relation to Want and Co.
A total of 23 claims have been made so far against the fund totalling more than $537,000.
Investigations are continuing into the affairs of Want and Co and may be referred to REBA or the police.
Mr Kobelke said he rejected allegations that REBA had failed in its duties.
He said consumers with any complaints against real estate agents should contact the board, which was the industry watchdog that had extensive powers to enforce the strict regulatory regime over real estate agents and their trust accounts.
Minister's office: 9222 9211
