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?
Correct Answer
A) Written notice to the Secretary within 5 days, with the amount and the reason
Section 89 of the Property and Stock Agents Act 2002 requires a licensee, within 5 days after becoming aware that a trust account has become overdrawn, to notify the Secretary in writing of the account name and number, the amount overdrawn and the reason. Separately, s 92 requires the bank to report an overdrawn trust account within 5 business days.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Background Knowledge for Finance Taxation
Common Mistakes to Avoid on Finance Taxation Questions
More Finance Taxation Questions
In NSW, above what purchase price does a foreign person start paying surcharge purchaser duty on residential land?
In NSW, stamp duty on residential property purchases is calculated based on:
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?
An agency held trust money during the year ending 30 June 2026. By when must its trust account audit report be lodged?
A small agency does both sales and property management and banks sales deposits and rent into one general trust account. What do the rules of conduct require?
- → Which of these amounts received by a NSW sales agency is trust money under the Property and Stock Agents Act 2002?
- → 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?
- → A supplier obtains a court judgment against a NSW agency for unpaid office fit-out costs and tries to enforce it against the agency's trust account. What is the position?
- → A licensee in charge is going on leave and wants her Class 2 senior property manager to approve trust payments while she is away. Can she delegate this?
- → At the end of August an agency balances its trust cash book and reconciles it to the bank statement. By when must it prepare the trial balance of all trust ledger accounts?
- → An agency is clearing out old files. How long must it keep its trust account records and its trust account auditor's reports?
- → A property manager is handed a tenant's rent in cash at the office. When must a trust receipt be prepared?
- → A vendor and purchaser agree that the 10% deposit on a long settlement should earn interest for them. How can the agent hold it so the interest is not paid to the Statutory Interest Account?
- → An agency closes one of its trust accounts after merging its sales operations. What must the licensee do about the closure?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
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?
Next Question
A licensee in charge is going on leave and wants her Class 2 senior property manager to approve trust payments while she is away. Can she delegate this?