A WA real estate agent receives a deposit from a buyer. Where must this deposit be held?
Correct Answer
A) In a trust account at an authorised deposit-taking institution
Under the Real Estate and Business Agents Act 1978 (WA), all trust money received by an agent must be deposited into a trust account at an authorised deposit-taking institution (ADI) within the prescribed timeframe. Trust money must never be mixed with the agent's own funds.
Why This Is the Correct Answer
Under the Real Estate and Business Agents Act 1978 (WA), money an agent receives for others, such as a buyer's deposit, must be banked into a trust account at an authorised deposit-taking institution and kept separate from the agent's own funds.
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