Property Services Compensation Fund
Many people are not aware that there is a compensation fund that was set up by NSW fair Trading to protect consumers who have suffered a financial loss due to the actions of an agent failing to account for trust money. The Property Services Compensation Fund was set up to assist people who are out of pocket because an agent (or conveyancer) has failed to account for money or other valuable property held in trust.
A ‘failure to account’ is a reference to a failure by a licensee to account for money or other valuable property entrusted to the licensee (or an associate of the licensee) in the course of the carrying on of the licensee’s business as a licensee. The Commissioner for Fair Trading maintains the Compensation Fund.
Examples of loss may include:
A person who has suffered a loss because of such a ‘failure to account’ may be entitled to make a claim on the Fund. The maximum amount that a Claimant may recover from the Compensation Fund is currently $500,000. Claims must be made in writing to the Director–General:
You can locate claim forms here: