Western Australian Current Regulations

STRATA TITLES (GENERAL) REGULATIONS 2019 - REG 101

101 .         Operation of trust accounts

        (1)         In this regulation —

        trust account means —

            (a)         a separate ADI trust account for a strata company, as referred to in section 148(1)(a); or

            (b)         a pooled ADI trust account for more than one strata company, as referred to in section 148(1)(b).

        (2)         A strata manager must ensure that any trust account operated by the strata manager is a type of account that cannot be overdrawn.

        (3)         If a trust account operated by a strata manager is a separate ADI trust account for a strata company, the strata manager must ensure that the words “trust account” are a prefix to the account name (followed by any other necessary identifying information).

        (4)         If a trust account operated by a strata manager is a pooled ADI trust account for more than one strata company, the strata manager must ensure that —

            (a)         the name of the strata manager is a prefix to the account name (followed by any other necessary identifying information); and

            (b)         the account name includes the words “trust account”; and

            (c)         the arrangements with the ADI are that any fees, charges or other amounts charged by the ADI in respect of the trust account (including government fees or charges) are charged by the ADI to a separate account held with the same ADI, and not to the pooled ADI trust account.

        (5)         Subregulation (4)(c) does not prevent a strata manager from requiring any fees, charges or other amounts charged by the ADI, or a proportion of those fees, charges or other amounts, to be paid by a strata company in accordance with a strata management contract.

        (6)         A trust account may be an interest‑bearing account.

        Notes for this regulation:

        1.         This regulation applies only to trust accounts referred to in section 148(1)(a) and (b). A strata manager may, instead of operating a trust account, pay money received on behalf of a strata company into the strata company’s own ADI account (as referred to in section 148(1)(c)).

        2.         The purpose of subregulation (4)(c) is to ensure that a pooled ADI trust account (in which funds are held for more than one strata company) is not used to pay fees or charges for which a single strata company may be responsible.