A NSW agency manages a beach house as short-term holiday accommodation for stays of one or two weeks. A guest pays a booking deposit to the agency. How must the agency treat this money?
Correct Answer
D) As trust money banked to the trust account with a trust receipt issued
NSW Fair Trading states that short-term stays of up to 3 months are not covered by residential tenancy laws, but payments for short-term rental accommodation, including deposits, are trust money that must be handled under the Property and Stock Agents Act 2002. Money received must be paid into the agent's trust account as soon as practicable and a trust account receipt issued to the guest.
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