A property manager is handed a tenant's rent in cash at the office. When must a trust receipt be prepared?
Correct Answer
A) Immediately on receiving the money
Section 22 of the Property and Stock Agents Regulation 2022 requires a licensee, immediately on receiving trust money, to prepare or cause to be prepared a receipt for it. For rent, the receipt must also show the date to which rent is paid and the position of the rent account. The original must be issued to the payer on demand.
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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?