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?
Correct Answer
C) In a separate trust account for the exclusive benefit of the vendor and purchaser
Section 86(6) of the Property and Stock Agents Act 2002 recognises a separate trust account opened by a licensee for the exclusive benefit of both the vendor and purchaser of land, and s 35 of the Property and Stock Agents Regulation 2022 exempts such accounts from s 90, the interest-to-Statutory-Interest-Account rule. The money stays trust money but the interest can follow the parties' agreement.
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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?
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An agency closes one of its trust accounts after merging its sales operations. What must the licensee do about the closure?