Investment in the property industry has become one of the most lucrative ventures. The value of properties is rising at a very high rate and anyone with investments in the sector is bound to increase in worth every minute that counts. However, despite the high returns from the sector, one requires a lot of knowledge and expertise to maneuver quickly in the proper industry. It is governed by strict regulations that all the stakeholders are supposed to uphold. Breach of any of these regulations can lead to hefty penalties to the real estate agents. This article seeks to highlight several industrial property violations and penalties as outlined in the Queensland laws.
It is against the law to run property agency without real estate registration license. The offenses in this category include;
1. Working without a license or registration certificate that attracts a penalty of $23,560 or two years imprisonment.
2. Dealing with unlicensed or unregistered an employee that attracts a penalty of $23'560 or two years in the prison sentence.
3. When you sell, hire or lend out a license or registration certificate. The guilty individual receives a penalty of $23,560.
Change of Details
The particulars of the license or the registration certificate should remain as they are unless one requests for change through writing. The advice should be made within 14 days of the change. This may include change in personal details or any other aspect of the license or the registration certificate. Failure to follow this regulation will attract a fine of $11,780.
As an agent, you need to ensure that the appointed person has the necessary skills to do the job, and you are liable for any breaches they may commit while you are away. There are clear guidelines that are laid out for the appointment of substitute licensee which when not followed may attract hefty penalties.
1. Lack of clear documents that show evidence of appointment into the office. The maximum penalty set for this offense is $11,780.
2. When you fail to lodge extension of appointment substitute for more than 30 days. The maximum penalty set is $23,560.
3. Acting as the licensee while you have already appointed a substitute. The maximum penalty set is $23,560.
Produce License Upon Request
The license should be available on demand by an inspector.
· Failure to produce the license or registration certificate upon request by an inspector will attract a maximum penalty of $23,560.
· Failure to show the license copy or registration certificate to a potential buyer or any other party upon request is an offense with a maximum penalty set at $11, 780.
It is an offense:
· Not to disclose a beneficial interest to a seller. The maximum penalty is $23, 560 or 3 years term in prison.
· Non-discloser of benefit to the buyer. The maximum penalty is $23,560.
· Charging a buyer's premium on real property goods without the consent of the owner. The highest penalty for this offense is $23, 560.
Trust Account Offenses
It is an offense to
· Carry out unauthorized transactions of a trust account. Maximum penalty set is $23,560 or 2 years in jail.
· Wrongful conversion and false accounts. The maximum penalty is $117,800 or five years in prison.
· Banking non-trust money into a trust account.
The above are some of the breaches that can land a real estate agent in prison. Enrolling in a training program can help one to learn a lot and avoid such hefty fines and prison sentences those offenses attract.