Which of these amounts received by a NSW sales agency is trust money under the Property and Stock Agents Act 2002?
Correct Answer
D) A buyer's expression of interest deposit paid to the agency
Section 85 of the Property and Stock Agents Act 2002 defines trust money as money received for or on behalf of any person by a licensee in connection with the licensee's business as a licensee. Under s 86 it must be held exclusively for that person and banked into a trust account until paid out as directed. A buyer's expression of interest deposit is held for the buyer.
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