An agency closes one of its trust accounts after merging its sales operations. What must the licensee do about the closure?
Correct Answer
A) Notify the Secretary (NSW Fair Trading) in writing within 14 days
Section 86(5) of the Property and Stock Agents Act 2002 requires a licensee to notify the Secretary in writing, in the approved form, within 14 days after closing a trust account. NSW Government guidance says to send the notice of closing a trust account form and keep the closure confirmation for 3 years.
Why This Is the Correct Answer
The licensee's own notice of closure is due within 14 days.
Why the Other Options Are Wrong
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- → 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?
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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?
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