A landlord asks his agent to withdraw $600 in cash from the trust account so he can collect it at the office. What should the agent tell him?
Correct Answer
D) Trust money can only be paid out by cheque or electronic funds transfer
Section 25 of the Property and Stock Agents Regulation 2022 says trust money must not be drawn from a trust account other than by cheque or electronic funds transfer. Cheques must be machine-numbered, marked 'not negotiable', not payable to cash, and signed by the licensee in charge.
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- → An agency records every sales deposit it holds in a single ledger headed 'Sales deposits'. What does the Regulation require instead?
- → A property manager receipts $1,800 cash rent on Tuesday and locks it in the office safe for the agency's usual Friday banking run. Is this compliant, assuming Wednesday banking was practicable?
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A buyer pays an expression of interest deposit on a Wollongong unit, but a different buyer then exchanges contracts. When must the agent refund the first buyer's deposit?
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A licensee discovers that one of the agency's trust accounts has become overdrawn after a mistaken payment. What does the Property and Stock Agents Act 2002 require?