New South Wales Consolidated Acts

PROPERTY AND STOCK AGENTS ACT 2002 - SECT 86

86 Trust money to be paid into trust account

(1) Money received for or on behalf of any person by a licensee in connection with the licensee's business as a licensee--

(a) is to be held by the licensee or (if the licensee is employed by a corporation) by the corporation, exclusively for that person, and

(b) is to be paid to the person or disbursed as the person directs, and

(c) until so paid or disbursed is to be paid into and retained in a trust account (whether general or separate) at an authorised deposit-taking institution in New South Wales and approved by the Secretary for the purposes of this Part.

(2) If the licence is held by a corporation, the trust account is to be in the name of the corporation and in any other case is to be in the name of the licensee or of the firm of licensees of which the licensee is a member.

(3) The name of a trust account and the description of the trust account in the books and records of the licensee and also on all cheques drawn on the trust account--

(a) must include the name of the licensee corporation, licensee or firm of licensees in whose name the trust account is kept, and

(b) must include the words "Trust Account", and

(c) may include, at the end of the account's name, a name or other matter to identify the person on whose behalf money in the account is held.

(4) When opening a trust account at an authorised deposit-taking institution for the purpose of complying with this section, the licensee concerned must ensure that the authorised deposit-taking institution is notified in writing that the account is a trust account required by this Act. The notification must be in a form approved by the Secretary and the licensee must serve a copy of the notification on the Secretary within 14 days after the trust account is opened.

(5) A licensee must, within 14 days after closing a trust account, notify the Secretary in writing of the closure. The notification must be in a form approved by the Secretary.

(6) Subsections (4) and (5) do not apply in respect of--

(a) a separate trust account kept on the instructions of a client of a licensee or firm of licensees for the exclusive benefit of the client, or

(b) a separate trust account opened by a licensee for the exclusive benefit of both the vendor and the purchaser of land.

(7) A licensee must also comply with any additional requirements relating to trust accounts prescribed by the regulations.

: Maximum penalty--100 penalty units.