A Victorian estate agent receives a $50,000 deposit from a buyer. Under the Estate Agents Act 1980, where must this money be deposited?
Correct Answer
B) A trust account kept by the agent at an authorised deposit-taking institution.
The Estate Agents Act 1980 requires all money received by an estate agent on behalf of another person to be deposited into a statutory trust account maintained at an authorised deposit-taking institution (ADI). Interest earned on trust accounts is paid to the Victorian Property Fund.
Why This Is the Correct Answer
The Estate Agents Act 1980 requires money an agent receives on behalf of others, such as a buyer's deposit, to be banked into the agent's trust account at an authorised deposit-taking institution and kept separate from the agent's own funds.
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