Conveyancers Act 2006

The Act directly affects licensees , natural persons or companies that hold a licence to carry on a conveyancing business (section 8). It also affects applicants for a licence, who must meet eligibility criteria and provide detailed information to the Authority (sections 13-15). Associates of licensees (section 6) are caught by provisions relating to trust money, record-keeping, and external intervention. Clients of conveyancers are beneficiaries of cost disclosure duties (section 47), conflict of interest obligations (section 49), and the compensation fund (Part 7). Employees of licensees must be properly supervised (section 51), and licensees must not employ disqualified persons without an exemption (section 56). Approved auditors (section 83) conduct mandatory annual audits of trust records (section 84) and must report irregularities to the Director (sections 87-88). Authorised deposit-taking institutions (ADIs) that maintain trust accounts must comply with arrangements with the Secretary (section 91), notify the Director of account details (section 92), report deficiencies and suspected offences (section 93), and freeze accounts on direction from the Director (section 94). The Director of Consumer Affairs Victoria has supervisory and enforcement functions, including referring applications to the Authority, receiving audit reports, appointing statutory managers, and applying for receivers. The Authority (Business Licensing Authority) grants, conditions, suspends and cancels licences and maintains the Register of Licensed Conveyancers (section 178). VCAT conducts inquiries into licensee conduct (section 33) and reviews certain decisions. The Supreme Court appoints receivers (section 110) and gives directions. The Secretary administers the Fund and may allow or disallow claims (Part 7). The Chief Commissioner of Police receives referrals on licence applications for background checks (section 21). Inspectors exercise powers of entry, search and seizure under Part 8.

The central duty is that no person may carry on a conveyancing business without a licence (section 8(1)), and a person who does so cannot recover any amount for work done (section 8(4)). A licensee must not cause, permit, aid or abet unlicensed conveyancing (section 9); conviction attracts mandatory licence cancellation and possible disqualification. A person must not pretend to be a licensee (section 10). Licensees must comply with conditions on their licence (section 25, penalty 120 penalty units). They must notify the Authority immediately if they become a disqualified person (section 26) or if a company licensee ceases to have a licensed director (section 27), with high penalties (up to 1200 penalty units for a company). Professional indemnity insurance is mandatory and must be disclosed to clients before or at the time of retainer (sections 41-42). If insurance ceases, the licence is automatically suspended and the licensee must notify the Authority and Director (section 43). Costs disclosure must be made to clients, setting out the amount or basis of calculation, invoicing method, and avenues for dispute (section 47); non-compliance means the client is not required to pay costs (section 47(4)). Conflicts of interest must be disclosed in writing before retainer or as they arise (section 49). A licensee must not act as both conveyancer and estate agent in the same transaction (section 50). Licensees must properly supervise the business, appoint a licensed manager for each place of business (unless exempted), and establish compliance procedures (section 51). Record keeping requires storage of records for seven years (section 58). The trust accounting regime (Part 5) imposes strict duties: maintain a general trust account in Victoria unless only controlled or non-cash transit money is received (section 66), deposit trust money promptly (section 68), hold and disburse trust money exclusively for the person on whose behalf it is received (section 69), and only withdraw by cheque or electronic funds transfer , cash, ATM and telephone banking withdrawals are prohibited (section 70). Controlled money must be deposited in the specified account and disbursed only in accordance with directions (section 71). Mixing trust money with other money is prohibited except as authorised by the Director (section 76). Trust records must be kept in permanent form for six years (section 80). Annual audits of trust records by an approved auditor are required (section 84), and audit reports must be lodged with the Director within ten business days of receipt (section 85). Licensees must report irregularities in trust accounts to the Director (section 79). They have a right to claim compensation from the Fund for pecuniary loss caused by a defalcation of a licensee or its officer or employee (section 144), with a ten-year limitation period from the date of the defalcation (section 145(2)). Persons affected by a decision of the Authority may apply to VCAT for review within 28 days (section 187).

The Act creates numerous criminal offences. Unlicensed conveyancing carries a penalty of two years imprisonment or 240 penalty units for a natural person, and 1200 penalty units for a corporation (section 8(1)). Aiding an unlicensed person attracts the same quantum (section 9). Deficiency in a trust account or failure to pay or deliver trust money is an indictable offence with a maximum penalty of 1800 penalty units or 15 years imprisonment, or both (section 78). Non-compliance with licence conditions (section 25), failure to maintain a general trust account (section 66), failure to deposit trust money (section 68), improper withdrawal methods (sections 70, 72), dealing with transit money improperly (section 73), and mixing trust money (section 76) each carry penalties up to 120 penalty units. Failure to notify the Authority of becoming disqualified (section 26) attracts 240 penalty units for a natural person and 1200 for a company. Offences relating to false or misleading information to inspectors (section 173) or to the Authority (section 181) carry 60 penalty units. The Act provides for infringement notices for prescribed offences (section 175). VCAT may conduct inquiries into a licensee’s conduct (section 33) and may reprimand, impose conditions, suspend (up to one year), cancel a licence, disqualify, require undertakings, or impose a fine up to $5000 payable into the Fund (section 34). Failure to pay the penalty may lead to further suspension and cancellation (section 34(4)). Enforcement powers under Part 8 include inspection of documents (sections 153-154), requiring documents and answers from licensees and third parties (sections 154-158), entry with consent (section 163), entry without warrant to business premises (section 164), search warrants (section 165), seizure and embargo notices (sections 167-168), and retention of documents for up to 12 months with court extension (sections 170-171). Obstruction or hindrance of a statutory manager or receiver is an offence (section 142, 120 penalty units). The Director may bring proceedings (section 185), and prosecutions may be commenced within three years of the offence (section 186).

Section 183 applies parts of the Australian Consumer Law and Fair Trading Act 2012 (Vic) to the Act, including provisions on inspectors’ powers (sections 152, 172, 173, 176, 178 of that Act) and enforcement mechanisms (injunctions, orders, and damages). The Act interacts with the Legal Profession Uniform Law (Victoria) by excluding Australian legal practitioners and incorporated legal practices from the licensing requirement (section 8(2)), and by defining “disqualified person” by reference to that law (section 5(a)). References to “legal work” in the definition of conveyancing work are tied to the Uniform Law (section 3 definition of legal work, section 4). The Estate Agents Act 1980 is relevant because the Fund is established under that Act (section 72), and section 50 prohibits a licensee from acting as both conveyancer and estate agent in the same transaction. The Sale of Land Act 1962 is referenced in section 33, which allows an inquiry into a licensee’s contravention of that Act. The Corporations Act interacts through sections 139-141, which declare certain provisions to be excluded matters or Corporations legislation displacement provisions, and which give the Director a right to intervene in external administration proceedings involving a licensee company. The Unclaimed Moneys Act 1962 is referenced in section 77(1)(c) for dealing with unclaimed trust money. The Limitation of Actions Act 1958 is displaced for claims against the Fund, which must be brought within ten years (section 145(2)). The Guardianship and Administration Act 2019 defines “represented person” as a category of disqualified person (section 5(h)). The Relationships Act 2008 defines “domestic partner” for associate relationships (section 6). The Act also cross-references the Business Licensing Authority Act 1998, Victoria Police Act 2013, Transfer of Land Act 1958, Planning and Environment Act 1987, Sentencing Act 1991, Public Administration Act 2004, and Infringements Act 2006.

The Act was enacted by No. 75 of 2006 and came into operation on 1 July 2008 (section 2(2)). Significant amendments include: No. 17/2007 (Fair Trading and Consumer Acts Amendment Act) , amended definitions, eligibility for licence (section 11), introduced surrender of licence (section 40A), changed trust account withdrawal rules (sections 70, 72), inserted sections 73A and 74, and added provisions on associate records. No. 12/2008 (Relationships Act) , substituted definition of domestic partner. No. 68/2009 (Criminal Procedure Amendment) , minor schedule amendment. No. 1/2010 (Consumer Affairs Legislation Amendment) , amended audit provisions and repealed section 190 and Schedule 2. No. 63/2010 (Consumer Affairs Legislation Amendment (Reform)) , amended reporting of trust audits (section 85). No. 72/2010 (Fair Trading Amendment (Australian Consumer Law)) , minor schedule amendment. No. 36/2011 (Consumer Acts Amendment Act) , added sale of business to conveyancing work (section 4(2A)), amended auditor qualifications (section 83). No. 21/2012 (Australian Consumer Law and Fair Trading Act) , substituted section 183 to apply new consumer law. No. 17/2014 (Legal Profession Uniform Law Application Act) , updated references from former Legal Profession Act to Uniform Law. No. 37/2014 (Victoria Police Amendment) , amended Chief Commissioner references. No. 12/2015 (Veterans and Other Acts Amendment) , minor amendment to section 183. No. 13/2017 (Consumer Acts Amendment) , inserted section 172A (offence to refuse inspector). No. 6/2018 (Oaths and Affirmations Act) , updated examination on oath provisions. No. 13/2019 (Guardianship and Administration Act) , substituted reference to represented person. No. 1/2021 (Consumer and Other Acts Miscellaneous Amendments) , updated professional body names (CPA Australia, etc.). No. 6/2025 (Consumer and Planning Legislation Amendment (Housing Statement Reform) Act) , inserted new section 192 on transitional regulations and amended section 188 to add CPD record-keeping and provider regulation. No. 46/2025 (Consumer Legislation Amendment Act) , inserted section 46B (mandatory CPD activities), amended definitions (externally administered body corporate) and sections 5, 140, 188 (providers). The version consolidated is No. 021, incorporating amendments as at 26 November 2025.

The Act itself does not cite any judicial decisions. However, the statutory framework generates litigation through several mechanisms. VCAT conducts inquiries under section 33 into licensee conduct, and its determinations under section 34 (reprimand, suspension, cancellation, fines, disqualification) are amenable to judicial review under the Victorian Civil and Administrative Tribunal Act 1998. Section 187 confers a right to apply to VCAT for review of a decision of the Authority. Claims against the Fund may be disallowed by the Secretary and then reviewed by VCAT under section 146, provided the claimant has exhausted other remedies. The Director may apply to the Supreme Court for appointment of a receiver under section 110, and the Court retains supervisory jurisdiction over receivers (directions under sections 135-136, review of expenses under section 133). Section 140 entitles the Director to intervene in external administration proceedings under the Corporations Act concerning a licensee company. Section 141 allows the Supreme Court to resolve issues when both a statutory manager/receiver and a Corporations Act administrator are appointed. Prosecutions for offences may be brought by the Director in the Magistrates’ Court, and the extended limitation period of three years (section 186) is relevant. No specific case names or precedents are recorded in the Act.

Several provisions contain traps for the unwary. Section 8(4) provides that an unlicensed person cannot recover any amount for conveyancing work done, and section 8(5) allows a client to recover any amount paid to an unlicensed operator as a debt. A licensee who causes, permits, aids or abets unlicensed conveyancing faces mandatory cancellation of their own licence and possible disqualification (section 9(4)). Section 43 automatically suspends a licensee’s licence if professional indemnity insurance lapses, and failure to notify the Authority and Director within time is an offence with penalties up to 1200 penalty units for a company. Annual licence fee non-compliance leads to suspension after a 14-day notice, and if still not cured by the next anniversary, cancellation results (section 37). The 14-day notification requirement for material changes to licence applications or annual statements (section 16 for applicants, section 38 for licensees) carries a 60 penalty unit penalty for each failure. A deficiency in a trust account (section 78) is an indictable offence with up to 15 years imprisonment and 1800 penalty units, and the offence requires only that the licensee caused the deficiency , there is no requirement of intent, only a defence of reasonable excuse. Cash received as trust money (section 74) must be deposited into a general trust account first, even if the client gives a written direction to deal with it otherwise; this overrides client instructions. Withdrawals from trust accounts (sections 70 and 72) are strictly limited to cheque or electronic funds transfer; cash, ATM, and telephone banking withdrawals are specifically prohibited, and this prohibition applies despite any client direction to the contrary. A licensee cannot surrender their licence if a VCAT inquiry has been applied for, unless VCAT grants leave or the inquiry has concluded (section 40A). Employment of a disqualified person (section 56) is prohibited unless an exemption is obtained from the Authority; doing so without exemption is an offence. Trust records must be kept for six years (section 80), but other business records must be kept for seven years (section 58). Self-incrimination is a reasonable excuse for a natural person to refuse to give information or do a thing under Part 8, but it is not a reasonable excuse for refusing to produce a document (section 176(2)). Client confidentiality is not a basis for refusing to give information about receivable property to a receiver (section 118(2)). The time limit for claims against the Fund is ten years from the date of the defalcation, not from when the loss was discovered (section 145(2)), which may catch late claims.

A person intending to carry on a conveyancing business must first obtain a licence from the Authority by meeting eligibility requirements (section 11): be at least 18, hold prescribed competency qualifications and work experience (section 12), not be a disqualified person, hold professional indemnity insurance (or be employed by a licensee who does), and pay fees. The application must include detailed information about the applicant, business name, addresses, proposed managers, insurance, and qualifications (sections 14-15). Any material changes to the application must be notified to the Authority within 14 days (section 16). Once licensed, a licensee must maintain professional indemnity insurance at all times (section 41) and disclose type and level to clients before retainer (section 42). Costs must be disclosed as prescribed (section 47), and actual or potential conflicts of interest must be disclosed in writing (section 49). The licensee must properly supervise the business, appoint a licensed manager for each place of business (unless exempted), establish compliance procedures, and monitor conduct (section 51). If a manager is to be absent for more than seven days, a replacement must be appointed and notified (section 55). The licensee must maintain a principal place of business in Victoria (section 57). Records relating to conveyancing work must be stored for seven years (section 58). The licence must be displayed at each place of business (section 59) and produced on request to the Director, Authority, client, or other transaction participant within seven days (section 61). Trust accounting compliance is critical: open a general trust account with an approved ADI and notify the Director of account details within 14 days (section 67). Deposit trust money promptly (section 68), hold it exclusively for the client, disburse only per client directions (section 69), and use only cheque or electronic funds transfer for withdrawals (section 70). Controlled and transit money have specific rules (sections 71-73). Cash trust money must be deposited first (section 74). Keep trust records in permanent form for six years in accordance with regulations (section 80). Appoint an approved auditor to conduct an annual audit (section 84) and lodge the audit report with the Director within ten business days of receipt (section 85). Report any irregularities in trust accounts to the Director (section 79). Pay the annual licence fee and lodge an annual statement (section 35). Notify the Authority of any material changes within 14 days (section 38) and of becoming a disqualified person immediately (section 26). Comply with any conditions on the licence (section 25). Undertake continuing professional development as prescribed (sections 46 and 46B). Ensure no disqualified persons are employed without an exemption (section 56). Cooperate with inspectors and the Director during monitoring and enforcement (Part 8). If a claim is made against the Fund, cooperate with the Secretary.