I have several rental properties in a managed building and the Management Agreement states the Manager must maintain a Trust Account with our funds.
The cheques i get however do not have Trus account on them.
What is a trust account, In Victoria what rules apply and who gets the interest raised on the funds in a Trust account.
ASB Alpine
All agent’s that collect money from tenants or purchasers on behalf of another party (landlords or sellers) must maintain a trust account that is regulated and controlled by a state government authority. In SA it is the office of consumer and business affairs.
Under no circumstances must the money ever go into the agent’s personal account until it is authorised. Ie even when commissions are owed to the agent, the money has to remain in the trust account until there is a written authority to take it out.
It is a legal requirement to have a trust account, there may be a logical explanation why the cheques dont have the words trust account on them, maybe they are not paid “directly” from there??? I would quirie the agent just to be clear.
Investment Property Management
http://www.adprop.com.auWhat body would control such accounts in Victoria and where could I get a copy of the legislation and consequences for breaches
ASB Alpine
Estate Agents (General, Accounts and Audit) Regulations 1997
http://www.austlii.edu.au/au/legis/vic/consol_act/eaa1980145/
See Part IV, s 58 onwards
Terryw
Discover Home Loans
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