All Topics / Help Needed! / SA property unit trust and real estate agent
Hi
Hoping someone has some knowledge in this area.If the property that we own is owned in the name of a unit trust in SA, are we then required by law to have all gross rent deposited into the Unit Trust bank account? On the management agreement with our real estate agent it just states our personal names, there is no reference to 'trusts' or 'trustees'. I have asked the agent to keep the rent and pay the bills for us from his own trust account, which is normal practice for real estate agencies. At the end of the month he is to deposit what is left over into the unit trusts bank account. We own a separate property just under our names and the agency just sends us what is left over at the end of the month. My sister has a few properties as well, managed by RE agents and they do the same thing.
Our agent has drawn up a 'further conditions' agreement for us to sign which states this fact. He refers to trusts and trustees, but he has not been authorised to draw up any documents relating to our unit trust, and as I am a trustee does he have a right to make these changes in reference to the management of the property?
The reason we want to have them pay the bills is to avoid continual contact with the other couple of whom the partnership has broken down. The other couple have insisted that any bill that gets paid (and there are alot of them) have to be emailed for authority before being paid out of the Unit Trust fund. This could go on for years and we wish no contact as the other couple have been verbally abusive and also agressive to the real estate agency. I believe the agent has drawn up this document after discussions with the other couple and is trying to protect his own agency.
Hope someone could help answer by question.
Thks
Sorry I should have added that this Property unit trust is owned by two couples and the other couple have been contacting our agent (of whom we pay all agency mgt fees personally ourselves) and demanding how the agency is to manage the property. We hired the agent so that we did not have to deal with the other couple as much anymore as the partnership has broken down. The other couple said that they didnt mind if we went ahead and got an agent, but now are seeming to 'force' their rules.
You must remember that trust assets are not your own assets. Trustees have duties to act in good faith etc to the beneficiaries or the unit holders of the trust. The trustee must keep all trust monies separate from their own personal money. If you have another family involved then you are leaving yourself open to a dispute down the track and it would be easy for them to show you have used trust money for your personal expenses.
Best to keep it all separate I think and then make distributions and deal with your money separately then
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ok thanks
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