A Queensland real estate agent receives a $20,000 deposit from a buyer for a residential property purchase. The agent must deposit these funds into:
Correct Answer
B) The agent's general trust account, before the end of the next business day
Under section 16 of the Agents Financial Administration Act 2014 (Qld), an agent who receives a deposit must pay it into the agent's general trust account before the end of the first business day after receiving it. The only alternative is a special trust account investment where all parties to the sale direct it and settlement is more than 60 days away.
Why This Is the Correct Answer
The Agents Financial Administration Act 2014 (Qld) requires an agent to pay trust money, including a buyer's deposit, into the general trust account before the end of the first business day after receipt. The trust account keeps clients' money separate from the agency's own funds.
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