Regulator investigates missing $1m

The authority that regulates real estate agents is probing ‘‘abnormalities’’ in the trust account of an Auckland franchise.

It has been alleged that $1 million was found to be missing from Preet & Co’s trust account.

The company has 10 Harcourts-branded offices across Auckland.

Agents have the accounts to hold money from clients, such as the deposits paid on houses.

The Real Estate Agents Act requires that all money received by agents for real estate transactions must be kept in a trust account until it is paid out to the property vendor, or as commission to the salespeople.

It has been reported that Harcourts has topped up the fund to ensure clients are not left out of pocket.

Real Estate Agents Authority chief executive Kevin Lampen-Smith said the authority was working with Preet & Co and Harcourts as a result of the investigation.

‘‘We are confident that no consumers have lost funds as a result of the abnormalities in this trust fund. As our investigations are ongoing we are unable to comment further.’’

Harcourts chief executive Chris Kennedy said owner and operator Preet Grewal has voluntarily suspended his real estate licence while the authority looked into the abnormalities.

‘‘However, Harcourts Group Ltd has ensured no member of the public with monies in the trust account has been affected,’’ Kennedy said.

‘‘Preet Grewal is a shareholder in Preet & Co Real Estate Ltd and Preet & Co Rentals Ltd with 10 offices and he is still on the company’s website.’’

Trust accounts are required to be audited regularly by a chartered accountant.

Grewal has been approached for comment. On his website, his profile says Grewal has ‘‘overseen the complete transformation of this real estate firm into one of the leading agencies in south and east Auckland’’.

He previously held management roles in the United Kingdom and Ireland.