LAND AGENTS ACT 1994 - SECT 16

LAND AGENTS ACT 1994 - SECT 16

16—Appointment of administrator of trust account

        (1)         If the Commissioner knows or suspects on reasonable grounds that an agent—

            (a)         is not registered as required by law; or

            (b)         has been guilty of a fiduciary default in relation to trust money; or

            (c)         has operated on the trust account in such an irregular manner as to require immediate supervision; or

            (d)         has acted contrary to this Act or otherwise unlawfully or improperly or negligently in the conduct of the business; or

            (e)         in the case of a natural person—

                  (i)         is dead or cannot be found; or

                  (ii)         is suffering from mental or physical incapacity preventing the agent from properly attending to the agent's affairs; or

            (f)         has ceased to carry on business as an agent; or

            (g)         has become bankrupt or insolvent or has taken the benefit (as a debtor) of a law relating to bankrupt or insolvent debtors or, in the case of a body corporate, is being wound up, is under official management or is in receivership,

the Commissioner may appoint a person to administer the agent's trust account.

        (2)         This section applies in relation to conduct occurring before or after the commencement of this Act.

        (3)         The Commissioner must, as soon as practicable after appointing an administrator, give notice in writing of the appointment to—

            (a)         the agent; and

            (b)         all persons who are entitled (whether solely or jointly) to withdraw money from, or deal with money in, the account; and

            (c)         the ADI at which the account is held.

        (4)         A person who has been given notice of the appointment of an administrator, or who knows that an administrator has been appointed, must not withdraw money from, or deal with money in, the trust account while the appointment continues.

Maximum penalty: $20 000.

        (5)         An ADI that has been given notice of the appointment of an administrator must not, while the appointment continues, accept any withdrawal of, or dealing with, money in the trust account unless the withdrawal or dealing is at the direction, or with the written approval, of the administrator.

Maximum penalty: $20 000.