NSW Fair Trading is investigating a Byron Bay real estate franchisee in relation to trust account deficiencies of more than $550,000.

Fair Trading Commissioner Rod Stowe is urging affected consumers to contact NSW Fair Trading for information and advice on 13 32 20.

Mr Stowe said Fair Trading is investigating irregularities in the trust accounts operated by BPBB Pty Ltd, trading as Belle Property Byron Bay.

The agency operated out of premises at 1/20 Fletcher Street, Byron Bay. The agency was closed last week and a franchise agreement with Belle Property Australasia has been terminated. Fair Trading appointed an independent manager to oversight the wind-down of the business. Fair Trading has seized the agency’s business records and interviewed a number of people involved in the business.

The Commissioner said clients of the real estate agency should contact NSW Fair Trading as matter of urgency.

“In particular, this applies to anyone who may have booked a holiday rental, purchased a property or entered into a lease,” he said.

Fair Trading commenced its investigation on 23 June after being contacted by Belle Property Group with advice that its internal audit branch had identified anomalies with the trust accounts of one of its franchisees.

Mr Stowe said Fair Trading had responsibilities under the Property, Stock and Business Agents Act 2002 and under associated legislation, such as the Residential Tenancies Act 2010, to protect property buyers, sellers, tenants and landlords.

“Fair Trading requires real estate agents to comply with the laws that govern the industry and to ensure appropriate arrangements are in place to manage large sums of clients’ money,” he said. “Consumers can apply to the Property Services Compensation Fund for redress.”

The Property Services Compensation Fund (the Fund) helps people who find themselves out of pocket because an agent or conveyancer, in the course of carrying on the business of a licensee, has failed to account for money or other valuable property held in trust.

The Fund covers dealings with licensees under the Property, Stock and Business Agents Act 2002 and the Conveyancers Licensing Act 2003, including real estate agents, stock and station agents, business agents, on–site residential property managers, strata managing agents and conveyancers.

The Fund extends, in certain circumstances, to unlicensed conduct, where there is a reasonable belief that the person was a licensed agent or conveyancer. A ‘failure to account’ occurs in circumstances including where money has not been used as directed. A person who has suffered a loss because of such a ‘failure to account’ may be entitled to make a claim on the Fund. Claims must be made in writing to the Director–General: within 12 months of becoming aware of the failure to account, or within 2 years of the date the failure to account took place, whichever period ends first. For more information go to the Rules of conduct page on the Fair Trading website.

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