A northern suburbs property manager has been banned from the industry for five years for failing to deposit income from rental properties into a trust account.
The Department of Commerce's Consumer Protection division said real estate agent Van Dung Nguyen faced disciplinary action after he placed three payments totalling $13,660 received from the tenant of three units in Girrawheen into a business account rather than a trust account.
The payments were for rent, water rates, strata levies and management fees from January to October 2012.
Real estate agents are required to place all payments into a trust account under the Real Estate and Business Agents Act.
The department said Mr Nguyen used the funds for his own personal expenses and other business expenses.
Mr Nguyen was operating a property management business called Golden Investments.
He filed for bankruptcy in September 2013 and currently lives in Queensland.
Commissioner for Consumer Protection Anne Driscoll said the requirement for the funds to be placed in a trust ensured transparency and allowed for easy auditing.
“This … gives both the tenant and property owner confidence to know that their funds are being used appropriately,” Ms Driscoll said in a statement.
“Agents who borrow money from their trust accounts to pay their operational expenses are breaking the law and will face disciplinary action.”
