The Chief Executive, Office of Fair Trading, Department of Justice and Attorney-General v Houda [2025] QCAT 497

Agents Financial Administration Act 2014 (Qld), s 100, s 101, s 112, s 116, s 118, s 119

This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld)

• [1] On 26 March 2025 the Applicant filed in the Tribunal an Application for a reimbursement order pursuant to s 119 of the Agents Financial Administration Act 2014 (Qld) ('the Act'), seeking orders that the Respondent be required to pay the Claim Fund established under s 78 of the Act the sum of $8,300.00.

• [2] The Act provides that the Applicant can apply to this Tribunal for an order for the Respondent to reimburse the Claim Fund, in circumstances where the Applicant has allowed a claim against the Claim Fund under s 100, and the Respondent is liable to reimburse the Fund under s 116; yet has not done so, as required by a letter of demand given to the Respondent by the Applicant.
• [3] On 25 July 2023 the Applicant decided a claim in favour of the purchaser of a second-hand vehicle 'GJO', thereby determining to pay GJO the sum of $8,300.00, and naming the Respondent as the party liable for GJO's financial loss, and as the person now liable to reimburse the Claim Fund for the amount paid to GJO ('the decision').
• [4] The Respondent Mohammad Houda is a licensed motor dealer (licence number 4467533).
• [5] On 17 November 2021 Mohammad Houda purchased a 2011 Subaru Forester at auction, for $3,700. The Auctioneer's receipt indicated that the vehicle had 334,721 kilometres displayed on its odometer.
• [6] On 18 November 2021 Mohammad Houda became the registered operator of the vehicle, yet with only 256,049 kilometres displayed on the odometer.
• [7] On 31 December 2021 GJO purchased the vehicle for $12,000, and became the registered operator of the vehicle, now with only 112,077 kilometres displayed on the odometer.
• [8] On 1 March 2022 GJO became aware that the Subaru Forester had travelled much further than its odometer suggested.
• [9] On 18 January 2023 GJO lodged her claim for compensation against the Claim Fund.
• [10] On 25 July 2023 the Chief Executive of the Applicant determined that the $3,700 originally paid by the Respondent to purchase the Subaru Forester at auction was more reflective of its true value than was the $12,000 subsequently paid by GJO in order to acquire the vehicle. Accordingly, it was determined to pay GJO the difference ($8,300.00) out of the Claim Fund.
• [11] Subsequently, on 26 July 2023 the Applicant sent the Respondent written notice of the decision, together with an information notice, as is required by s 102 of the Act.
• [12] Section 112 of the Act provides that payment of claims must not be made until the end of the review period allowed for any review of the Chief Executive's decision and, if a review is applied for, until the review is finally determined.
• [13] Section 33 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) provides that for a review of a reviewable decision, an application must be made to QCAT within 28 days after the relevant day, being the day when the Respondent was notified of the decision.
• [14] On 29 August 2023 the QCAT Registry advised the Applicant that no review application had been lodged at QCAT by the Respondent.
• [15] On 4 October 2023, and consistent with s 112 of the Act, the Applicant duly paid GJO the sum of $8,300.00, drawing upon the Claim Fund to be able to do that.
• [16] In accordance with s 101 of the Act, in circumstances wherein no application to review the decision has been commenced, the Respondent becomes bound by the decision to pay GJO and is now unable to challenge either the correctness of that decision, or the amount paid.
• [17] Pursuant to s 116 of the Act the Applicant is authorised to recover the amount paid to GJO from the Respondent. On 13 February 2024 the Applicant sent to the Respondent a letter of demand requiring that the Respondent reimburse the Claim Fund in the amount of $8,300.00 ('first demand letter').
• [18] On 10 December 2024 the Applicant took the precaution of sending the Respondent a further letter of demand ('second demand letter').
• [19] Neither the first nor second demand letter has been complied with by the Respondent.

• [20] So far as is relevant, the Act provides:
  1. Deciding claims

(1) The chief executive may decide to allow the claim, wholly or partly, or reject the claim.

(2) However, the chief executive may decide to allow the claim only if satisfied, on the balance of probabilities, that the person may make the claim under division 2.

(3) The chief executive must have regard to the following when deciding the claim -

(a) the parties' comments given under section 96(2);

(b) any information or document given under section 98;

(c) any report prepared by an inspector under section 93.

(4) The chief executive must decide the claim without a hearing.

(5) If the chief executive decides to allow the claim, wholly or partly, the chief executive must -

(a) take into account -

(i) any amount the claimant might reasonably have received or recovered if not for the claimant's neglect or default; and

(ii) any amount ordered to be paid to the claimant as compensation under the Property Occupations Act 2014, section 188, 204 or 228; and

(b) decide the amount of the claimant's financial loss; and

(c) name the respondent who is liable for the claimant's financial loss.

1. Chief executive's decision binds the parties and no extension of time is allowed

(1) If no application for review of the chief executive's decision is made within the time allowed under the QCAT Act, section 33(3) -

(a) the chief executive's decision is binding on the claimant and the respondent; and

(b) the amount paid to the claimant from the fund in accordance with the decision may be recovered by the chief executive as a debt owing to the chief executive by the respondent named in the decision; and

(c) the respondent may not subsequently challenge the correctness of the decision or the amount payable.

(2) Section 122 and the QCAT Act, section 61 do not apply to enable QCAT to extend the time within which a person may seek a review under the QCAT Act, section 33(3).

1. Payment of claims

(1) If a claim is allowed under section 100 or 105 or on a review of the chief executive's decision, the chief executive must authorise payment from the fund in the amount decided by the chief executive or QCAT.

(2) A payment under subsection (1) -

(a) must not be made -

(i) for a claim decided by the chief executive - until the end of the period allowed for review of the chief executive's decision and, if a review is applied for, until the review and any appeal is finally decided; or

(ii) otherwise - until the end of the period allowed for appeal and, if an appeal is made, until the appeal is finally decided; and

(b) is taken to be in full settlement of the claim against the fund.

(3) Subsection (4) applies if the chief executive is satisfied all or part of the amount of the claim relates to an amount the agent has failed to pay to a relevant government agency on behalf of a client.

(4) The chief executive may make all or part of the payment directly to the relevant government agency instead of to the claimant.

(5) This section is subject to section 113.

(6) In this section -

relevant government agency means a government entity under the Public Sector Act 2022, section 276.

1. Liability for payment from the fund

(1) This section applies if -

(a) a person is named in the chief executive's decision or QCAT's order as being liable for a claimant's financial loss; and

Note -

See sections 100 (Deciding claims), 105 (Deciding claims) and 106 (Orders QCAT may make on claim hearing).

(b) an amount has, under section 112, been paid from the fund in settlement of the claimant's claim.

(2) This section also applies if a person is the holder of an account under part 4 in relation to which the chief executive makes a special payment under section 115.

(3) A person mentioned in subsection (1)(a) or (2) is the responsible person for the amount.

(4) Each of the following persons is jointly and severally liable to reimburse the fund to the extent of the amount paid from the fund for the claim or special payment -

(a) the responsible person;

(b) if the responsible person is a corporation, each person who was an executive officer of the corporation when the relevant event mentioned in section 82 happened.

(5) The chief executive may recover as a debt from each person mentioned in subsection (4) an amount for which the person is, under the subsection, liable to reimburse the fund.

(6) Before taking action to recover the amount of the debt, the chief executive must give a letter of demand to the debtor requiring the debtor to pay the amount to the chief executive within 28 days after receiving the letter.

1. Application for reimbursement order

(1) This section applies if -

(a) for a claim against the fund -

(i) the chief executive decides to allow, wholly or partly, the claim under section 100; and

(ii) the responsible person liable to reimburse the fund under section 116 has not done so as required under a letter of demand given to the person under section 116(6); or

(b) the chief executive has made a special payment under section 115, and the person who is the holder of the account under part 4 in relation to which the chief executive made the special payment has not reimbursed the fund as required under a letter of demand given to the respondent under section 116(6); or

(c) a person is liable to reimburse the chief executive for a receiver's remuneration and costs, and has not done so as required under a letter of demand given to the person under section 64(4); or

(d) a person is liable to reimburse the chief executive for an investigator's remuneration and costs, and has not done so as required under a letter of demand given to the person under section 75(4).

(2) In this division, a respondent is a person mentioned in subsection (1)(a)(ii), (b), (c) or (d).

(3) The chief executive may apply, as provided under the QCAT Act, to QCAT for an order that the respondent reimburse the fund or the chief executive.

(4) The application must be accompanied by the following documents -

(a) if the application relates to the reimbursement of a claim against the fund - a copy of the information notice given under section 102;

(b) a copy of the letter of demand given under section 64(4), 75(4) or 116(6);

(c) a statutory declaration by the chief executive stating -

(i) the amount paid from the fund for the special payment or in settlement of the claim, or the amount paid to a receiver or investigator for remuneration and costs; and

(ii) the amount of any payment received from the respondent in satisfaction of the claim, special payment or amount paid to the receiver or investigator.

1. Respondent to be advised of application

(1) The chief executive must -

(a) give a copy of the application and the accompanying documents to the respondent; and

(b) advise the respondent that QCAT will make a reimbursement order if satisfied that -

(i) a letter of demand was sent to the respondent under section 64(4), 75(4) or 116(6); and

(ii) the respondent has not paid the stated amount within the time allowed under the letter of demand; and

(iii) if the application relates to the reimbursement of a claim against the fund or special payment - the matters stated in subsection (2) apply; and

(c) advise the respondent that the respondent may make written submissions for QCAT's consideration about when and in what way the respondent intends to satisfy the amount paid in settlement of the claim or as a special payment or to a receiver or investigator.

(2) For subsection (1)(b)(iii), the matters are -

(a) under the chief executive's decision the respondent is liable to reimburse the fund in a stated amount; and

(b) an information notice under section 102 was given to the respondent; and

(c) either -

(i) the respondent did not apply to QCAT under section 103 to have the decision reviewed; or

(ii) the decision has been reviewed by QCAT, and under QCAT's decision, the respondent is liable to reimburse an amount to the chief executive or the fund.

1. Reimbursement orders

(1) QCAT must consider an application for a reimbursement order and any written submissions made by the respondent for the application.

(2) QCAT must make a reimbursement order if satisfied that -

(a) the respondent has not paid the stated amount within the time allowed under the letter of demand; and

(b) if the application relates to the reimbursement of a claim against the fund - the matters stated in subsection (3) apply.

(3) For subsection (2)(b), the matters are -

(a) the chief executive has made a decision about a claim against the fund; and

(b) under section 116 the respondent is liable to reimburse the fund in a stated amount; and

(c) either -

(i) the respondent did not apply to QCAT under section 103 to have the decision reviewed; or

(ii) the decision has been reviewed by QCAT, and under QCAT's decision, the respondent is liable to reimburse an amount to the chief executive or the fund; and

(d) written notice of the chief executive's decision, a copy of the decision and an information notice under section 102 was given to the respondent.

(4) If QCAT makes a reimbursement order, the order must state that the respondent is liable to pay to the chief executive a stated amount within a stated period.

• [21] No written submissions have been received by the Tribunal from the Respondent for purposes of s 119(1) of the Act.
• [22] Pursuant to s 119(2), the Tribunal is satisfied that the Respondent has not paid the required amount of $8,300.00 in response to either of the demand letters sent to him by the Applicant. The Tribunal is further satisfied in relation to each of the other matters specified in s 119(2), and in s 119(3) of the Act.

• [23] Pursuant to s 119 of the Agents Financial Administration Act 2014 (Qld) Mohammad Houda is liable to reimburse and is now ordered to pay the Claim Fund established under s 78 of the Agents Financial Administration Act 2014 (Qld) the sum of $8,300.00 within 21 days of the date of these orders.