Rider Chartered Accountants is a specialist property accounting firm as is authorised by NSW Fair Trading and other state based real estate licensing bodies (including Victoria and Queensland) to complete the audit of your Real Estate Agent Trust Account.
Requirements when opening a trust account
When opening a trust account, these requirements apply:
- licensees need to notify the authorised deposit-taking institution in writing that the account is a ‘trust account’ required by the Act
- if held by a corporation, the trust account must be in the name of the corporation
- if not held by a corporation, the trust account must be in the name of the licensee or the firm
- the name of the licensee, firm or corporation needs to appear as a prefix of the account name, followed by any other necessary identifier of the trust account
- the words ‘Trust Account’ must also be included in the name of the trust account and all cheques drawn on the trust account.
Unique identifying numbers for general Real Estate Trust accounts
Under the Property and Stock Agents Regulation 2022 (NSW), a licensee who opens a trust account must provide the authorised deposit-taking institution (bank) with a unique identifying number (UID) given by NSW Fair Trading.
The licensee must ensure that each trust account has a UID. If a business maintains multiple trust accounts, each account will need to be registered separately. If the trust account is held by a corporation, the trust account must be registered using the corporation’s licence number.
Licensees can use NSW OneGov to apply for a UID and obtain the necessary form(s) to notify their authorised deposit-taking institution.
The authorised deposit-taking institution lodges its monthly returns using this UID.
Who is Authorised to Approve Real Estate agent Trust account withdrawals?
Only a licensee in charge (LIC) of a business may authorise trust account withdrawals from a trust account.
This means that LICs are responsible for reviewing and approving all transactions for the trust account before they occur, including electronic fund transfers and payment of trust money by cheque.
There can also only be one LIC who is able to authorise withdrawals for a trust account.
An LIC is unable to delegate their authority to another person.
LICs should be aware that if they allow another person to withdraw funds from the trust account on their behalf, they may still be held liable for any breach or defalcation (misuse).
What Banks are Approved for Real Estate Trust Accounts?
Trust accounts must be kept at an authorised deposit-taking institution in NSW. The Secretary of NSW Fair Trading has approved the following deposit-taking institutions:
- ANZ Bank – Australia and New Zealand Banking Group Limited
- BCU Bank – a division of Police & Nurses Limited
- BOQ – Bank of Queensland
- Bank of Sydney Ltd
- BankWest – a division of Commonwealth Bank of Australia
- Bendigo Bank – Bendigo and Adelaide Bank Limited
- Coastline Credit Union Ltd
- Commonwealth Bank of Australia
- HSBC Bank Australia Limited
- Hume Bank Limited
- Illawarra Credit Union Limited
- IMB Bank – IMB Ltd
- Macquarie Bank Limited
- Maitland Mutual Limited T/as The Mutual Bank
- NAB Bank – National Australia Bank Limited
- Newcastle Greater Mutual Group Limited
- Regional Australia Bank Ltd
- St. George Bank Limited
- State Bank of India
- Suncorp Bank – Norfina Limited
- The Summerland Credit Union Ltd
- Unity Bank Limited
- BankWAW – WAW Credit Union Co-operative Ltd
- Westpac – Westpac Banking Corporation.
What are the Requirements to Open a Real Estate agents Trust Account?
There are a number of requirements that need to be met as you open your new real estate agent trust account. They are:
- licensees need to notify the authorised deposit-taking institution in writing that the account is a ‘trust account’ required by the Act
- if held by a corporation, the trust account must be in the name of the corporation
- if not held by a corporation, the trust account must be in the name of the licensee or the firm
- the name of the licensee, firm or corporation needs to appear as a prefix of the account name, followed by any other necessary identifier of the trust account
- the words ‘Trust Account’ must also be included in the name of the trust account and all cheques drawn on the trust account
Unique identifying numbers for general trust accounts
Under the Property and Stock Agents Regulation 2022, a licensee who opens a trust account must provide the authorised deposit-taking institution (bank) with a unique identifying number (UID) given by NSW Fair Trading.