Sam holds a class 1 licence but is not the nominated licensee in charge of his branch. The licensee in charge is out at lunch and a settlement payment from trust is urgent. May Sam authorise the withdrawal?
Correct Answer
D) No; only the licensee in charge of that trust account may authorise the payment.
Section 5(2) of the Property and Stock Agents Regulation 2022 says a real estate agent may not authorise a trust withdrawal unless they are the licensee in charge of the business the account relates to. Fair Trading's licensee in charge guidance adds that there can be only one licensee in charge per trust account and the authority cannot be delegated.
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