A licensee in charge wants the office administrator to handle payments out of the rental trust account by electronic funds transfer. Which arrangement is permitted?
Correct Answer
A) The administrator releases each payment only after the licensee in charge authorises it in writing.
Fair Trading's licensee in charge guidance says only the licensee in charge may authorise trust withdrawals and this cannot be delegated. Another person may physically effect an electronic transfer, but only after the licensee in charge has authorised that withdrawal in writing. Cash withdrawals are prohibited and trust cheques must be signed by the licensee in charge.
Why This Is the Correct Answer
Staff may press the button on an electronic transfer, but only after the licensee in charge's written authorisation for that payment.
Why the Other Options Are Wrong
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A homeowner signs a sole agency agreement, then sells the house to a neighbour she found herself, with no agent involved. Is commission payable under the sole agency?
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