Real estate businesses across New South Wales have come under increased regulatory scrutiny after a statewide compliance campaign uncovered multiple breaches involving the handling of consumer funds. The operation resulted in more than $200,000 in fines, licence restrictions, industry bans and mandatory training orders as authorities moved to strengthen financial safeguards for property buyers and sellers.
The NSW Fair Trading Strata and Property Taskforce conducted the operation under the Property and Stock Agents Act, focusing on higher-risk agencies and licence holders. Intelligence-led information was used to identify businesses requiring closer attention, particularly those responsible for operating trust accounts and managing money held on behalf of clients.
One Western Sydney agency received a $22,000 penalty and lost its licence after repeatedly failing to complete mandatory trust account audits. Despite receiving reminders and additional time to meet its obligations, the business remained non-compliant. It was also disqualified from the industry and prohibited from directing, managing or operating a licensed property business until the outstanding audit is completed.
A separate Sydney agency was also penalised after failing to lodge its required trust account audit. The business initially received a $5,500 fine, but after committing the same breach again, authorities imposed another $11,000 penalty. Its Licensee in Charge was additionally ordered to undertake further training as part of the regulatory response.
The statewide campaign produced a range of enforcement outcomes. Authorities placed 34 businesses on notice over possible licence suspension, while 41 overdue audits were eventually submitted. The operation also resulted in 32 formal warnings, three industry bans, six compulsory training orders and total financial penalties exceeding $200,000.
Trust account audits are an important part of the regulatory framework because property professionals can hold substantial amounts of money belonging to consumers. Regular auditing helps determine whether those funds are being correctly recorded, accounted for and protected. NSW Fair Trading said the results also reinforce expectations across the industry, even though most property agents continue to meet their obligations.
The NSW Government has allocated $8.4 million to the Strata and Property Taskforce, bringing together specialist inspectors, investigators and dispute resolution professionals. The investment is intended to identify misconduct, improve compliance and raise standards across the property and strata sectors while providing stronger protections for consumers dealing with property businesses.
The latest enforcement action forms part of a broader program of reforms aimed at making apartment ownership and property services more transparent. Measures include tougher penalties for undisclosed conflicts of interest, payment plans for owners experiencing financial hardship, stronger requirements around common-property maintenance, independently certified initial levy estimates and restrictions on certain insurance commissions.
Additional reforms have also made minor renovations easier and removed barriers to sustainability improvements, including solar panels and electric vehicle charging infrastructure. The government says these changes are intended to improve fairness for property owners while ensuring strata schemes and the professionals managing them meet their responsibilities.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said businesses that fail to properly protect consumer funds should expect enforcement action. NSW Strata and Property Services Commissioner Angus Abadee similarly stressed that trust account audits are essential for ensuring money held on behalf of consumers is properly managed. Regulatory outcomes may also be published through the NSW Government’s Name and Shame Register, giving consumers greater transparency when assessing property service providers.
