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?
Correct Answer
C) No, only the licensee in charge may authorise trust withdrawals
Section 5 of the Property and Stock Agents Regulation 2022 says a real estate agent may not authorise a trust withdrawal unless they are the licensee in charge of the business the account relates to. NSW Government guidance adds that only one licensee in charge may authorise withdrawals for each trust account and this cannot be delegated. Staff may process a transfer only after the licensee in charge has authorised it in writing.
Why This Is the Correct Answer
Authorising trust withdrawals is reserved to the licensee in charge and cannot be delegated.
Why the Other Options Are Wrong
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- → 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?
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- → 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?
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- → 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?
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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?
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