As at October 2026, an individual NSW agent holds client deposits in her personal account instead of the trust account. What maximum court penalty applies to her for mishandling trust money?
Correct Answer
B) $55,000
From 29 June 2026 the maximum court penalties for some serious offences under the Property and Stock Agents Act 2002, including mishandling trust money, dummy bidding and acting without a licence, are $55,000 for an individual and $110,000 for a corporation. Trust money must be banked into a trust account, so keeping deposits in a personal account is a serious breach.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
More Ethics Compliance Questions
NSW Fair Trading serves a notice to show cause on an agent over alleged breaches of the rules of conduct. How long must the notice give the agent to respond?
NSW Fair Trading suspects an agent's recorded estimated selling prices are unrealistically low. Since 29 June 2026, which step can it take about those estimates?
A NSW agent's marketing emails recommend a mortgage broker as 'independent', but the broker pays the agent a fee for each referral. What do the rules of conduct require?
A licensee in charge learns that one of the sales agents routinely leaves the estimated selling price out of agency agreements. Under Schedule 1, what is the licensee in charge's obligation?
A NSW property manager arranges a 12-month residential lease for a landlord. Is this an AUSTRAC real estate designated service?
- → An agent tells an elderly owner she must sign an agency agreement tonight or lose every buyer, then phones her repeatedly after 10 pm when she hesitates. Which Schedule 1 rule is most clearly breached?
- → An agent hands a buyer the agency’s expression of interest statement form to sign before accepting her deposit. When must the agent give the buyer a copy of the signed statement?
- → An assistant agent's sister wants to buy a house that the assistant's employing agency has been retained to sell. How does s 49 of the Property and Stock Agents Act 2002 apply?
- → As at October 2026, what is the maximum court penalty for a corporation convicted of dummy bidding at a NSW residential auction?
- → As at October 2026, what new maximum court penalty applies to a NSW agent or assistant agent who does not meet the continuing professional development requirements?
- → In New South Wales, what must an agent give a client before the client signs an agency agreement for the sale of residential property?
- → A vendor has instructed her agent in writing not to pass on any offers below $850,000 (invented). Before exchange, a buyer makes a genuine written offer of $800,000. What does NSW law require of the agent?
- → At an open home, a buyer asks the selling agent whether the roof was replaced when the house was renovated. The agent does not know. What is the appropriate response?
- → A buyer asks the agent selling a house to also act as her buyer's agent for that same house, for a separate fee. What does the Property and Stock Agents Act 2002 say?
- → After a NSW residential auction where the property was passed in, the vendor asks the agent for a copy of the Bidders Record so he can phone the underbidders himself. How should the agent respond?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
As at 2026, a small NSW sales agency with turnover under $3 million provides AUSTRAC designated services. How does the Privacy Act 1988 apply to the ID it collects for AML/CTF?
Next Question
As at October 2026, what is the maximum court penalty for a corporation convicted of dummy bidding at a NSW residential auction?