Australian Property Alliance, formerly Nicheliving Real Estate, has been fined after mishandling a $50,000 deposit.
Australian Property Alliance, formerly Nicheliving Real Estate, has been fined after mishandling a $50,000 deposit.
The State Administrative Tribunal recently fined the real estate agency $5,000, over a deposit that should have remained in trust.
Australian Property Alliance (APA) acted as an agent for Golden Gateway Development, a seller for two proposed strata lots in Orelia in 2020.
The buyers paid a $50,000 deposit, which APA received into its trust account, according to the SAT decision.
The tribunal found APA withdrew the deposit from the trust account to pay the builder, who was contracted by the seller to build a dual key dwelling at the Orelia site for the buyers.
APA admitted to improperly releasing the $50,000 deposit, accepting the responsibility for the breach at an early stage of the legal proceedings, the decision revealed.
Consumer Protection commissioner Trish Blake said the reprimand showed the importance of safeguarding buyers’ deposits and complying with trust account laws.
“Trust account rules are not optional – they are fundamental consumer protections,” she said.
“When an agent releases funds contrary to the law, it exposes buyers to unnecessary risk and undermines confidence in the real estate sector.
“The law requires deposits for proposed strata lots to remain in trust until the plans are registered.
“These protections cannot be waived or contracted out of, and agents are expected to understand and follow these requirements.”
Ronnie Michel-Elhaj and Paul Bitdorf are listed as directors of APA.
The pair co-founded and operated home builder Projex Management & Construction, trading as Nicheliving.
The state government banned Nicheliving and its directors from operating for a decade after a spate of issues with the building company.
In mid-2024, the Building Services Board cancelled Nicheliving’s builder registration on financial grounds.
It was revealed Nicheliving signed four years’ of work in a two-year period, prioritised more profitable builds and had debts totalling $76 million.
KordaMentha administrators were called in to take control of Nicheliving’s construction division.
The state government also announced it would fund up to $40 million insurance for the more than 200 Nicheliving customers who had unfinished homes, to lodge claims to access up to $200,000 in home indemnity insurance.
