A supplier obtains a court judgment against a NSW agency for unpaid office fit-out costs and tries to enforce it against the agency's trust account. What is the position?
Correct Answer
D) Trust money cannot be taken to pay the licensee's creditors
Section 88 of the Property and Stock Agents Act 2002 states that trust money is not available to pay the licensee's debts to any other creditor and cannot be attached or taken in execution under a court order at the instance of another creditor. It does not remove a licensee's own just claim or lien over trust money.
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A small agency does both sales and property management and banks sales deposits and rent into one general trust account. What do the rules of conduct require?
- → 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?
- → 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?
- → 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?
- → A property manager is handed a tenant's rent in cash at the office. When must a trust receipt be prepared?
- → 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 small agency does both sales and property management and banks sales deposits and rent into one general trust account. What do the rules of conduct require?
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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?