An SA land agent puts a buyer's deposit into the agency's operating account for a week to cover a cash shortfall. What are the consequences?
Correct Answer
B) Prosecution and disciplinary action, which can include cancellation of registration
Section 13(2) of the Land Agents Act 1994 (SA) forbids paying money other than trust money into a trust account and withdrawing trust money except as the Act permits; misappropriating trust money carries heavier penalties including imprisonment. The Commissioner can suspend, cancel or impose conditions on registration, and complaints can be taken to SACAT for disciplinary orders.
Why This Is the Correct Answer
Commingling breaches s 13 of the Land Agents Act 1994 (SA), an offence in itself, and it is also proper cause for disciplinary action, which can end in cancellation of registration.
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