Activity 1: Identifying the responsibilities when transacting trust accounts

Answer the following questions. Answers are at the end of this workbook.

1. List three trust account responsibilities placed upon the licensee under the NSW Fair Trading Supervision guidelines.

2. List three personal obligations of real estate personnel when administering the trust account.

3. Name the legal and regulatory framework that applies to the operation of a real estate licensee trust account in NSW.

4. Describe two trust account records that a licensee must keep.

5. What forms of payment can be used as payment into a trust account?

6. List three requirements for issuing a cheque from the trust account.

7. What is the penalty for breaching section 25 of the Regulations, in penalty point and monetary terms?

8. What effect can trust account offences have on your office reputation and clients?

9. Identify the piece of legislation that outlines the requirements for a licensee to maintain separate trust accounts for sales and management.

10. List three trust account responsibilities placed upon the licensee under the Supervision guidelines.
 
11. List three personal obligation of real estate personnel when administering the trust account?
• maintain the security of their individual passwords
• follow the procedures set out by the licensee
• ensure all trust account entries are accurate
• keep all trust records confidential
• only carry out transactions that they are authorised to do