26 February 2024

Fines for failing to lodge tenancy bonds

Two recent cases at the State Administrative Tribunal (SAT) serve as a timely reminder regarding the importance of lodging tenancy bonds within the required time frame.

A Welshpool real estate agency and its director have been fined and reprimanded over failing to lodge $32,380 in tenancy bonds with the Bond Administrator within the 14 day timeframe.

The State Administrative Tribunal (SAT) fined Honsun Realty Pty Ltd and director Riqui Li $4,000 each for breaching the Real Estate and Business Agents Code of Conduct (Code).  The agency failed on 24 occasions to lodge $32,380 in tenancy bonds with the Bond Administrator within the 14 day timeframe. This money was received for residential rental properties between February 2021 and January 2022.

In the second case, Adrimaka Pty Ltd (trading as LJ Hooker Two Rocks) and its director Adam Fields have been fined $5,000 each and reprimanded over failing to lodge $27,800 in tenancy bonds with the Bond Administrator within the 14 day timeframe. The agency breached the Code on 13 occasions between December 2021 and April 2022.

As people responsible for their businesses, both directors in each case did not take the reasonable steps to ensure their employees complied with Residential Tenancy Act (RTA) and Code requirements.

Commissioner for Consumer Protection Trish Blake said those in charge of real estate agencies are trusted with large sums of money in the form of bonds. Agents must lodge bonds with the Bonds Administrator as soon as practicable, or in any event within 14 days of receipt. 

Compliance with these laws is essential to ensure the security and safety of tenants’ funds.

Real estate agents and property managers legal obligations

Bonds must be lodged with Bonds Administration as soon as possible and no later than 14 days after a tenant/s pay.  All tenants on the tenancy agreement must be named on the bond, regardless of who paid it.

Bonds Administration will send a record of payment of security bond directly to the tenant. Consumer Protection advises all tenants that if they have not received a receipt of their bond from the Bond Administrator within four weeks to contact us and we will investigate further.

Real estate agents and property managers are required to lodge Bonds using the BondsOnline system.

Real estate agents and property managers must manage bonds receipts and records according to legislation. A written record of the bond paid must be readily accessible and be kept for at least six years. Failure to issue a bond receipt (even if the bond was paid electronically) could attract a $2,000 infringement notice.

The bond cannot be used by any person unless by written agreement from all parties to the bond or by a court order.

How to lodge a bond guide provides more information on lodging bonds. Personal information is managed in accordance with the Bonds Administration management of personal information policy 

More information on the obligations of real estate agents, sales representatives and property managers is available on the Consumer Protection website or enquiries can be made by email or by calling 1300 30 40 54.