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.
Why This Is the Correct Answer
Trust withdrawal authority attaches to the licensee in charge role, not to holding a class 1 licence.
Why the Other Options Are Wrong
Background Knowledge for Agency Practice
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Common Mistakes to Avoid on Agency Practice Questions
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Priya holds an unrestricted class 2 real estate licence and wants to open her own agency as a sole trader. What does the Property and Stock Agents Act 2002 require?
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Since the June 2026 changes to the Property and Stock Agents Act 2002, who can approve standard forms of agency agreement for use in NSW?