Property Industry News

Trust Account Audit Requirements
 Article From the Fair Traiding

Under the Property Stock and Business Agents Act 2002 and the Conveyancers Licensing Act 2003, licensees' records in relation to the handling of trust money must be audited by a person qualified to act as an auditor. Download the required documentation  from the Fair Trading website using the links below.

You must submit an audit report to Fair Trading, if you received or held trust money during the financial year ending 30 June 2012 and are:

• a licensee
• a former licensee, or
• a personal representative of a licensee.

In most cases, it is the licensed corporation that receives and is responsible for trust funds. A trust account audit must be lodged by the licensed corporation. If an individual licensee receives and is responsible for trust money, then a trust account audit must be lodged by the individual licensee.

If a licensed corporation or an individual licensee has not held any trust money during 2011/12, a statutory declaration must be lodged declaring this.

Every licensee, both corporations and individuals, must lodge either a trust account audit or a statutory declaration with Fair Trading no later than 30 September 2012. If a trust account audit is not lodged by the due date, a licensee is regarded as a disqualified person and their licence would not be renewed until the audit documentation is lodged.

The failure to lodge an audit can result in the imposition of monetary penalties and/or prosecution action being taken by Fair Trading.

Documentation for Property, stock and business agent audits

Property, stock and business agents should go to the Trust account audit requirements page to access their audit and statutory declaration documentation as well as for information to assist in the preparation of audit reports.

Documentation for conveyancer audits

Conveyancers should go to the Trust accounts and audit requirements page to access their audit and statutory declaration documentation as well as for information to assist in the preparation of audit reports.

Watch Fair Trading real estate videos

Did your know that Fair Trading has produced a series of short videos about real estate matters?

The videos provide useful tips for real estate professionals on issues such as buying and selling property, what makes a good agent, discrimination in the rental market, selling at auctions, strata living, price setting and agents' responsibilities to landlords.

Fair Trading is in the process of developing more videos about the property industry. Some of the topics include understanding the price and doing your homework when you are buying or selling real estate.

You can view the Fair Trading's videos on the Fair Trading You Tube channel.
 
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