A new property manager asks who keeps the interest earned on the agency's general trust account. What is the correct answer?
Correct Answer
B) The bank pays it to the Statutory Interest Account
Section 90 of the Property and Stock Agents Act 2002 requires each authorised deposit-taking institution to calculate interest on trust account balances each month and pay it to the Secretary for the Statutory Interest Account (the Property Services Statutory Interest Account). The institution must not deduct transaction charges, other than statutory charges, from those balances or the interest.
Why This Is the Correct Answer
The bank calculates interest on general trust accounts and pays it to the Statutory Interest Account.
Why the Other Options Are Wrong
Background Knowledge for Finance Taxation
Exam Tip for Finance Taxation
Common Mistakes to Avoid on Finance Taxation Questions
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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?
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