All Topics / Help Needed! / Realestate license Trust account

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513
    October 12, 2010 - 6:00 am

    Hi

    Can someone tell me if I can do this

    I am looking at buying into a realestate business and being 50% director and 50% shareholder and I will be a silent partner. 
     
    My Question:
    Do I need to hold a realestate license to be a director shareholder? (remember I will be a silent partner)
    My partner holds all licenses

    Now as for banking there will be both signitures required for every cheque signed
    And obviously there will be a trust account

    Can I also have my name & or the company name on this trust account?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 12, 2010 - 6:11 am

    I believe there has to be one director of the company at least who has the licence.

    Since you are director you can have the bank accounts set up so that both signatures are required, or either, or maybe even a third party. Watch out for internet banking too – whoever has access can transfer money.

    I am not sure about the trust account, probably on those qualified will be able to operate one.

    Also I should warn you that being a director is extremely risky and is not really necessary in this case. Just having one person doing it would be preferable. Having 50/50 shares would mean there could be a deadlock over voting over certain matters – such as appointing directors maybe. You should have a clear method worked out what you do if one votes for something and the other against.

    Also watch out if you are a director and you not active day in the day to day running of the place. You could be breaching the corporations Act by failing to take proper care and due diligence and if something goes wrong saying you didn't know about it may not be good enough for a defence.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    October 12, 2010 - 10:47 am

    No you don’t need a re licence but it would be prudent to do the registration course eg OTEN or Kaplan etc.

    Yes, you can have 2 signatures on cheques & also require ‘approval’ for internet payments.

    No, you must have xyz Realestate statutory trust account on the re trust cheque account.

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