real estate accounting
TRANSCRIPT
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Real estate trust
accounting
A reference manual
December 2005
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December 2005
This publication was produced by the Real Estate and Business Agents Supervisory
Board (the Board). REBA is the statutory authority responsible for regulating the
real estate industry in Western Australia.
This publication is to be read in conjunction with the relevant legislation.
If agents require the services of an interpreter contact the Translating and Interpreting
Services (TIS) on 131 450 and ask for a connection to 1300 30 40 64.
This publication is intended to provide general advice only. It is not intended to
provide legal advice or advice about individual cases. Readers should seek
appropriate independent advice about their particular circumstances.
This publication contains general information that was current at the time of print.
Additional copies of this publication are available free of charge on the Boards
website or by calling the Real Estate and Settlement Call Centre. (See contact
details on the back cover.)
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Contents
Introduction 1
Usingthisbooklet 1
Additionalcopies 1
PART 1. TRUST ACCOUNTING 2
1:1 Whatistrustmoney? 2
1:2 Whatismeantbytrustaccounting? 2
1:3 WhyaretherespecialrequirementswithintheAct forthecontroloftrustmoney? 3
1:4 Whathappenstotheinterestontrustaccounts? 3
1:5 Typesoftrustaccounts 3
GnralTrustAccounts 3
RebATnancybondTrustAccounts 4
IntrstbaringTrustAccounts 4
1:6 Titlingoftrustaccounts 5
TitlingofGnralTrustAccounts(gsals,rnt) 5
TitlingofIntrstbaringTrustAccounts 5
TitlingofTnancybondTrustAccounts 6
1:7 Receivinganddepositingtrustmoney 61:8 Opening,closingandamendingtrustaccounts 6
1:9 Whattrustdocumentsandrecordsmustbemaintained? 7
1:10 Howlongmusttrustrecordsberetained? 8
1:11 Whatuseismadeofthedocumentsandrecords? 8
1:12 Whencanpaymentofcommissionandexpensesbe deductedfromtrustmoney? 8
1:13 Whatmustanagentdoonbecomingawarethat atrustaccountisoverdrawn? 9
1:14 Aspectsofcomputerisedtrustaccounting 10
PART 2. TRUST DOCUMENTS AND RECORDS 11
2:1 Principlesoftrustaccountpractice 11
2:2 Registerofsecurities 12
2:3 Trustreceipts 13
Trustrciptprocss 13 Contntoftrustrcipts 13
Rciptsforrntandtnancyonds 14
RalestatTrustAccounting-ARfrncManual i
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2:4 Interimreceipts 15
2:5 Trustdepositforms 15
2:6 Trustaccountwithdrawals 16
2:7 Cashreceiptsjournalandcashpaymentsjournal 18
2:8 Trustledgers 19
2:9 Trustaccounttransferjournal(generaljournal) 21
2:10 Recordingwithdrawalsofcommission 23
2:11 Balancingatrustaccountattheendofeachmonth 23
PART 3. TRUST ACCOUNT AUDITS 28
3:1 Whataretheannualdutiesofanagentregarding trustaccountaudits? 28
3:2 Whatareanagentsdutiesinappointinganauditor? 28
3:3 Whatareanagentsresponsibilitiestotheauditor? 29
3:4 Whatarethedutiesofanauditor? 29
Howshouldanagntrspondtoanauditorsrcommndations? 30
3:5 Whatareanagentsdutiesinchanginganauditor? 30
3:6 Whatifarealestateagencycloses? 31
3:7 Unclaimedtrustmoney 32
PART 4. PREVENTING THEFT AND FRAUD 34
4:1 Earlyindicatorsoftheftandfraud 34
4:2 Computersystems 35
Arastowatch 35
Mainprolmstomrgfromcomputrasdsystms 35
examplsofintrnalcontrols 36
4:3 Bankreconciliations 36
4:4 Transferjournal 36
4:5 Receiptbooks 37
4:6 Agencymanagement 37
4:7 Cashpaymentsorchequepayments 37
4:8 Trustaccountmanagement 38
4:9 Whatmustanagentdoonbecomingawareoffraud ortheft? 38
Glossary 39Index 41
RalestatTrustAccounting-ARfrncManualii
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Introduction
ThReal Estate and Business Agents Act 1978("thAct")rquirsthstrict
maintnancofaformalstoftrustaccountrcordswhichshowatanytimth
statofaralstatandusinssagntstrustaccount.
ThisookltisdsigndtoassistagntstostalishandmaintainatrustaccountrcordingsystmthatcompliswiththAct.Thookltisnota
comprhnsivaccountingtxtforagntsandfamiliaritywiththcontntofthis
ookltisnotsufficienttosatisfythrquirmntthatagntshavasound
workingknowldgofthAct.
Using this booklet
PartOnanswrsgnralqustionsaouttrustaccounting.PartTwoxamins
thdocumntsandrcordsthatconstitutthtrustaccountingsystmand
whichjustmaintaindythagnt.PartThrdiscusssthagntsdutis
andrsponsiilitisrlatingtotrustaccountaudits,andPartFourlooksat
rcommnddpracticsforrducingthftandfraudwithinaralstatand
usinssagncy.
Additional copies
AdditionalcopisofthisookltaravailalfrofchargonthRebA
wsitwww.ra.wa.gov.auorfromRebA:
RebA
Lockdbag14
CloistrsSquar
PrthWA6850
Tlphon:92820843Fax:92820869
RalestatTrustAccounting-ARfrncManual 1
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Part 1. trust aCCounting
1:1 What is trust money?
Trustmonyismonythatisrcivdorhldyanagntoranymmrofan
agntsstaffonhalfofanothrprsoninrlationtoaralstatorusinss
salstransactionorproprtymanagmnttransaction.Dpositsonsals,
tnancyonds,rntsandpr-paidadvrtisingarallxamplsoftrustmony.
Thboardrquirsmonyrcivdyalicnsdagntinthcoursofstrata
managmntworktopaidintoatrustaccount.Monyhldonhalfof
proprtyownrsforvarialoutgoings(grpairsandmaintnancfunds)
shouldalsohldinatrustaccount.
Monyrcivdinthcoursofothrusinsssconductdyanagntis
notmonyrcivdinthcoursofactingasaralstatagnt,andisnot
considrdtotrustmonyundrthAct.Suchmonydosnot,thrfor,
fallwithinthtrustaccountingrquirmntsofthAct.Fundsofthistyp,
howvr,mayincluddaspartofanagntstrustaccountwhritisst
practictodoso.Thboardstronglyrcommndsthatifanagnthasany
doutsaouthowtotratanymony,thyshouldactonthsidofcautionand
tratitastrustmony.
Itisssntialtormmrthatthtrustaccountmonylongstoothrpopl.
Rmovingthmonyfromthtrustaccountforarasonothrthanonthatis
lawfulandappropriatisavrysriousmattr.
Trustmonymustkptsparatfromthagntsgnralusinssmony
atalltims.Asparatstofaccountingrcordsmustkptforachtrust
account.Refer: section 67 of the Act
1:2 What is meant by trust accounting?
Trustaccountingisthgnraltrmusdtocovrthaccountingrcordsand
practicsrquirdundrthActtonalagntstoproprlyaccountfortrust
monyinthirpossssion.
evryagntwhoholdsacurrnttrinnialcrtificatmustmaintainonormor
trustaccounts.
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Alltrustmonymusthldinatrustaccountinthagntsnamina
prscridfinancialinstitution.Prscridfinancialinstitutionsincludallanks,
prmanntuildingsocitisandcrditunions.
Refer: section 68 of the Act
1:3 Why are there special requirements within the Act forthe control of trust money?
Agntsholdlargamountsofmonyonhalfofclints.Thtrustmony
accountingsystmaimstonsurthatalltrustmonyhldyagntscan
accuratlyaccountdforatalltims.Trustaccountandauditingrquirmnts
incraspulicconfidncinthsrvicsofagnts.
1:4 What happens to the interest on trust accounts?
Financialinstitutionswhichholdagntsgnraltrustaccountsarrquird
undrthActtopayaportionofthintrstonthsfundstothboard.Th
intrstarndontrustaccountssrvstofundarangofsrvicsprovidd
ythboardforindustrymmrsandconsumrsincludingducation,advic,
conciliationandinvstigationsofralstatissus.
Inthcasoftnancyondtrustaccounts,financialinstitutionswhichhold
thsaccountsarrquirdundrthResidential Tenancies Act 1987topaythintrstonthfundstothRntalAccommodationFundadministrdyth
bondAdministratoratthDpartmntofConsumrandemploymntProtction.
IntrstarndassistsinthadministrationofthResidential Tenancies Act
1987andinprovidingducationaloradvisorysrvicstotnants.
1:5 Types of trust accounts
General Trust Accounts
ThActrquirsthatalicnsdagntholdingacurrntTrinnialCrtificat
mustmaintainonormortrustaccounts.Allmonyhldforaprsonin
rlationtoaralstatorusinsstransaction,suchassals,proprty
managmnt,andstratamanagmnt,mustpaidintoaspciallytitldRebA
TrustAccount.Varialoutgoingsaccountsaralsotrustaccounts,andar
rquirdtotratdassuch.
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Agntsholdingtnancyondaccountsmustnsurthatthmonyiskpt
sparatinaTnancybondTrustAccount.Thrfor,agntswhohandlsals,
aswllasmaintainarntrollandholdtnancyondsarrquirdtohava
minimumoftwotrustaccounts(iGnralTrustAccountandRebAbondTrust
Account).
Agntsmaychoostoopnsparattrustaccountsforsucharasassals,proprtymanagmnt,varialoutgoingsandstratamanagmnt.Howvr,th
usofmultipltrustaccountswillincrasankfsandmayladtoagratr
potntialforrrorstomad.
REBA Tenancy Bond Trust Accounts
Th Residential Tenancies Act 1987hasspcificrquirmntsconcrning
thpaymntoftnancyondsintotrustaccounts.Undrclaus2ofPartAof
Schdul1,tothResidential Tenancies Act 1987,atnancyondrcivdy
anagntmustpaidintoaspciallytitldRebATnancybondTrustAccount
ordpositdwiththbondAdministrator,atthDpartmntofConsumrand
employmntProtction.Thisistodonassoonaspracticalaftrthagnts
rciptofthond.
AllauditandaccountingrquirmntsofthActandthRgulationsapplyto
trustaccountsopndundrthResidential Tenancies Act 1987.
Refer: Residential Tenancies Act 1987 Schedule 1
Real Estate and Business Agents Act 1978 section 68
Interest Bearing Trust Accounts
Sction68A(1)ofthActprovidsthataprsonmayrqustthatmonypaidby
thatpersoninrspctofatransactiondpositdtothcrditofasparat
intrstaringtrustaccountifthfollowingprscridrquirmntsarmt:
thdpositxcds$20,000;orthat
thtransactionwillnotsttldwithin60days.
Intrstarndonintrstaringtrustaccountsispayaltothprson
rqustingthaccount.
Gnrally,proprtymanagmnttransactionsdonotfallwithinthaovcritria.
Rqustsfromclintstoopnanintrstaringtrustaccountmustinwriting
andagntsshouldcomplywithsuchrqusts.Thrqustmusthldinan
agntsfilsforthinformationofthagntsauditor.
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1:6 Titling of trust accounts
Thtitlingoftrustaccountsnalsanasyidntificationofralstattrust
accountsforagnts,auditors,financialinstitutionsandthboard.
examplsofthtitlingofvariouscatgorisoftrustaccountsarprovidd
low.
Titling of General Trust Accounts (Eg sales, rent)
AgntsarrquirdtoincludthfollowinginformationinthtitlofaGnral
TrustAccount:
ntitynamandusinssnamasrcorddonthTrinnialCrtificat.
RebATRUSTA/C(thwordAccountcanarviatdorinfull).
TCfollowdyTrinnialCrtificatnumr(uptofivdigits).
Example: ABCPtyLtd(ABN12345678912)T/AXYZRealEstate
REBATRUSTA/CTC12345
Whnthrismorthanontrustaccount(gsals,rntal),thaccount
idntifirshouldapparaftrthwordsRebATRUSTA/C.
Examples: ABCPtyLtd(ABN12345678912)T/AXYZRealEstate REBATRUSTA/CSalesTC12345
ABCPtyLtd(ABN12345678912)T/AXYZRealEstate
REBATRUSTA/CRentalTC12345
Titling of Interest Bearing Trust Accounts
Agntsarrquirdtoincludthfollowinginformationinthtitlingofanintrstaringtrustaccount:
ntitynamandusinssnamasrcorddonthTrinnialCrtificatin
trustforthprsonmakingthrqust;
RebATRUSTA/C-Ib;and
TCfollowdythTrinnialCrtificatnumr(uptofivdigits).
Example: ABCPtyLtd(ABN12345678912)T/AXYZRealEstate intrustforJohnSmithREBATRUSTA/C-IBTC12345
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QuotationofTaxFilNumr(TFN)
Whnopninganintrstaringaccountintrustforaclint,thclintstaxfil
numrshouldquotdtoavoidtaxingwithhldatthtopmarginalrat.
Titling of a Tenancy Bond Trust Account
ThTnancybondTrustAccountmustasparataccount.
AgntsarrquirdtoincludthfollowinginformationwhntitlingTnancy
bondTrustAccounts:
ntitynamandusinssnamasrcorddonthTrinnialCrtificat;
RebATeNANCYbONDTRUSTA/C;and
TCfollowdythTrinnialCrtificatnumr.
Example: ABCPtyLtd(ABN12345678912)T/AXYZRealEstate
REBATENANCYBONDTRUSTA/CTC12345
PrivatlandlordsaralsorquirdtoopnaTnancybondAccountinth
namsofthownr(s)andthtnant(s)titldTeNANCYbONDA/Cwhich
shouldapparaftrthnam(s)ofthtnant(s).
Example: JASmith(owner)andASJones(tenant)
TENANCYBONDA/C
1:7 Receiving and depositing trust money
Alltrustmonymustdpositdinatrustaccountinanapprovdfinancial
institutionassoonasispracticalaftritisrcivd.Tnancyondsmust
dpositdwithithrthondadministratororanapprovdfinancialinstitution
assoonasispracticalaftrthagntsrciptofthond.
Refer: section 68(1) of the Act and Schedule 1 of the Residential Tenancies
Act 1987
1:8 Opening, closing and amending trust accounts
Whnvratrustaccountisopnd,closdoramndd,anagntmustadvis
thboardinwritingassoonaspractical.
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Thnotificationshouldprovidthnamandnumrofthtrustaccountand
thnamandaddrssofthprscridfinancialinstitutionwithwhichthtrust
accountismaintaind.Thdatonwhichthchangwasmadshouldalso
includd.
Thnotificationrquirmntapplistognraltrustaccounts,aswllas
anytnancyondtrustaccountsstalishd.Thboarddosnotndtoadvisdaoutthopning,closingoramndingofintrstaringtrust
accounts.
Refer: section 68C of the Act
1:9 What trust documents and records must bemaintained?
Itisssntialthathardcopisofthfollowingrcordscanproducdatth
rqustofthagntsauditororaRebAinspctor.
Trustdocumntsandrcordsthatmustmaintaindinclud:
arcordofmonyrcivdfororonhalfofanyothrprson;
trustrciptooksrgistr;
duplicatsofvrycompltdtrustaccountdpositform; trustaccountjournals;
trustldgrs;
trustchquooksrgistr;
rcordsoftrustmonypaymnts;
statmntoftrustmony;
rgistrofscuritis;
trustaccountrconciliationstatmnts;and
anyothrooks,accountsorrcordskptyanagntrlatingtotrust
mony.
Itisalsorcommnddthatack-upcopisofcomputrrcordsarrtaind
off-sit.Thismasurwillnsuraccssisavailaltothrcordsinth
vntofrror,falsificationofrcordsyanmployorphysicaldamagtothsystm.Ausfulsystmistomaintainoff-sitastofdiscswithondisc
lalldforachworkingday(gMonday,Tusdaytc).Thdisclalldfor
thatparticulardayistakntoworktoackuprcordsatthndofthday.
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Thstofdiscsarthnrotatdthfollowingwk.Withthissystminplac,
allthdiscsxcptthonlalldforthatdayarkptoff-sit.
Refer: section 77(1) of the Act
1:10 How long must trust records be retained?
Anagntmustkparcordofthmonyrcivdfor,oronhalfof,any
othrprson.Alltrustrcordsanddocumntsarrquirdtortaindfora
minimumperiodofsixyearsfromthdatonwhichthmonywasrcivd.
Whranagntactsastrustforasuprannuationfundrcordsmust
maintaindforaminimumperiodof10years.
Refer: section 69(1)(b) of the Act and regulation 6H of the Regulations
1:11 What use is made of the documents and records?
Documntsandrcordsnalthtrackingoftrustmonyhldyanagntat
anytim,tovrifythatthmonyhasndaltwithasrquirdundrthAct
andthRgulations.Vrificationisyanannualauditofthrcordsrquird.
Aswllasthannualaudit,thboardmayordraninspctionoftrustaccount
rcordsoranintrimauditofanagntstrustaccounts.
Anauditisanxaminationofthaccountshldyanagntyanindpndnt
prson.Unlssthboardapprovsothrwis,thauditmustconductdya
rgistrdcompanyauditor.Anagntmustmaintainalldocumntsandrcords
rlatingtoatrustaccountinamannrthatnalsthmtoconvnintlyand
proprlyauditdythagncysauditor.
OthrdutisofagntsrlatingtoauditsardiscussdinPart3.
Refer: section 68(6) of the Act
1:12 When can payment of commission and expenses bededucted from trust money?
Inrlationtoasalstransaction,anagntonlycomsntitldtodraw
commissionaftrsttlmntofthproprty,orwhrthfailurtosttlisth
faultofthagntsprincipal(thvndor).
Inaddition,anagntisonlyntitldtoafifallofthfollowingrquirmnts
havnmt:
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thagntislicnsdandhldacurrntTrinnialCrtificatwhnth
srvicswrprovidd[sction60(1)(a)];
thagnthasavalidappointmnttoactinwritingsigndythprsonfor
whomthsrvicsaringprovidd[sction60(1)()];
thappointmnttoactcompliswiththrquirmntsofsction60(2)and
rgulation6bA;and
thclintisproviddwithatrucopyofthappointmnttoact
immdiatlyaftrthysign[sction60(2)(c)].
Ifonormorofthaovrquirmntsarnotmt,thnanagntcanonly
otainthcommissionifthyhavthvndorsauthoritytodoso.Ifthagnt
dosnothavthvndorsauthority,thnthdisputisacivilmattrtwn
thpartis.
Whnanagntisrqustdtotransfrthpurchasrsdposittothsttlmnt
agntorsolicitor,thagntgnrallyrtainsaportionofthdposittocovr
thcommissionpayalandothrapprovdcosts.Thagntmayonlyrtain
thmonyifthappointmntsigndythvndorallowsthagnttodduct
commissionandapprovdxpnssfromthdposit.Thportionofthdposit
thatcomprissthagntsfshouldnotpaidoutfromthtrustaccountuntil
sttlmnthastaknplac.
Refer: section 60 and section 61 of the Act
1:13 What must an agent do on becoming aware that a trustaccount is overdrawn
ThActrquirsfinancialinstitutionstoinformthboardwhnvratrust
accountisovrdrawn.
ThActalsorquirsanagnttonotifythboardimmdiatlyoncoming
awarthatatrustaccountisovrdrawn,rgardlssofthamountinvolvd.Th
notificationmustincludthdatonwhichthovrdrawoccurrd,thamount
involvd,thrasonitoccurrd,andfulldtailsofanyactiontakntocorrct
thsituation.
RfrtoPartFouraoutwhattodointhvntoffraudorthftfromthtrust
account.
Furthrcommntsinrspctoftrustaccountpracticarmadundr2.1
Principles of Trust Account Practiceinthispulication.
Refer: section 68C(3) of the Act
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1:14 Aspects of computerised trust accounting
ThrquirmntsofthActapplytoalltrustaccountingsystms.
Itisimportantthatforanagntsignsacontracttopurchasorlasa
computrsystm,thagntndstochckwhthrthsoftwarincluddis
capalofproducingtrustrcordsthatcomplywiththrquirmntsofthAct.Thisisparticularlyimportantassoftwarpackagsdonotalwaysmtth
rquirmntsofWstrnAustralianlgislation.
Ifanagntisnotfamiliarwithcomputrisdsystms,andiscontmplating
purchasingasystm,thappraisalandslctionofasystmshould
discussdwiththagntsauditor.Thauditorcanadvisonthrcordsthat
mustgnratdandmaintaind.
Asasafguard,somagntshavrqustd,priortopurchasingacomputr
systm,thatanycostsinvolvdinaltrationstonsurcompliancwithWstrn
Australianlgislationwilldonatthxpnsofthsupplir.
Thboarddosnotapprovorndorsanycomputrsystmorsoftwar.Any
claimsysupplirsthatthboardhasgivnitsapprovalshoulddisrgardd.
Whilinmanyagncisthdaytodayupkpoftrustaccountrcordsis
dlgatdtoofficstaff,thprsoninbona fidecontrolofthagncyishld
rsponsilundrthActforalltrustaccountrcords.Forthisrason,itis
ssntialthatthprsoninbona fidecontrolofthagncyisfullyconvrsant
withthcomputrsystminstalld.Fullusshouldmadofthchcksand
controlsthatarintgratdintothsystm.Thboardsuggststhatagnts
purchassystmsthatwillautomaticallygnratadailyrportsothattrust
accountrcordsarmonitordfrquntlyfordiscrpancisandrrors.Th
prsoninbona fidecontrolofthagncyshouldprsonallychckthdailyrportandimmdiatlydalwithanyprolmsthataridntifid
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Part 2. trust DoCuments anD
reCorDs
Throloftrustdocumntsandrcords,aswllasthprscrid
rquirmnts,ardscridinthissction.Insomcass,xamplsthatmt
thrquirmntsofthActarshown.Howvr,itshouldundrstoodthat
thxamplsonlysrvasguids.
2:1 Principles of trust account practice
Itisimpossiltosummarisgoodtrustaccountookkpingpracticinafw
lins.Howvr,thfollowingasicprinciplsprovidanoutlin.
documntsarcompltdimmdiatly;
rcordsarwrittnupythndofthnxtusinssday;
trustmonyisankdythclosofusinssofthnxtusinssday,
(unlssthActallowsothrwis)inthsamformasitwasrcivd(i
cashrcivdmustankdascash);
rcordsarkptofalltransactionsandforthoswhrthrisno
documntaryvidncavailal,artorcorddinthtransfrjournal;
monthlyrconciliationstatmntsarcompltdaccuratlyandontim;
nomonysardductdfromtrustmonyuntilaftrsttlmnt(i
commissiononsals,monyforxpnss).Thonlyxcptioningis
authorisdprpaidvndoradvrtising;
vryclinthasasparatldgraccountandachindividualldgr
accountshouldnvrgointodit;
agntswithcomputrisdaccountingsystmsmaintainrcordsina
mannrthatcanconvnintlyandproprlyauditd(auditorscanadvis
onwhichdocumntsmustproviddinhardcopy);and
ack-upcomputrrcordsarkptoff-sit.
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2:2 Register of securities
Argistrofscuritislistsdtailsofallscuritisformonyanddocumnts
thatarhldyanagntintrust,ithrinthagntsownnamonly,in
conjunctionwithothrprsonsand/oragnts,orinaformthatistransfraly
dlivry.
Documntsthatndtorcorddinthrgistrofscuritisinclud:
allscuritisformony,thtitltowhichartransfralydlivry,hld
ythagntonhalfofanothrprson;
allscuritisanddocumntsoftitlhldyanagntonhalfofanothr
prson
-inthagntsownnam,or
-injointnamswithanothragnt,or
-undrthagntscontrol,or
-undrjointcontrolwithanothragntoragnts;and
allrciptsforthdpositofmonywithanyprsonmadyanagnton
halfofanothrprson-
-inthagntsownnam,or
-injointnamswithanothragnt,or
-undrthagntscontrol,or
-undrjointcontrolwithanothragntoragnts.
Informationthatmustrcorddforachdocumntis:
thdatthscurity,documntoftitlorrciptwasrcivd;
adscriptionofthscurity,documntoftitlorrcipt;
thvaluoramountofthscurityormonydpositd;
thnamofthprsonforwhomthscurity,documntoftitlorrcipt
ishld;
thdatofdlivryofthscurity,documntoftitl,orrciptyth
agnttoanothrprson,andthnamofthprsontowhomitisgivn;
and
thrasonwhythscurity,documntoftitlorrciptisinghld.
Refer: section 80ofthAct
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2:3 Trust receipts
Trust receipt process
Whntrustaccountsarkptmanuallyandapaymntismadinprson,a
rciptmustproviddtothprsonatthtimofpaymnt.Aduplicat
(markdduplicat)mustalsortaind.Ifacomputrsystmisingusd,aprintdrciptmustissudandarcordofthtransactionmaintaind.Ifa
paymntismadychquthroughthmail,thrciptshouldproviddas
soonaspossil.Arciptisnotrquirdtoissudifthmonyisrcivd
ylctronictransfr,howvr,arcordofthmonyrcivdmustkpt.
Content of trust receipts
Alltrustrciptsndtoshowthfollowinginformation:
thnamofthholdrofthTrinnialCrtificat,andanyusinssnam
ofthatholdr;
anumrorlttr,oracominationofoth,inconscutivordrtoallow
thrcipttouniqulyidntifid;
thdatonwhichthmonywasrcivd;
thnamofthprsonpayingthmony;
thamountofmonyrcivd;
arifdscriptionofthpurposofthpaymnt;and
ifthrciptishand-writtn,thnamofthprsonrcivingthmony
vidncdythsignaturofthatprson.
Refer: regulation 6G of the Regulations
Whnpaymntismadlctronically,anagntmustnsurthatarcordis
kpttoallowthrciptofthmonytouniqulyidntifid,yincluding:
anumrorlttr,oracominationofoth,inconscutivordrthat
allowsthrcordtouniqulyidntifid;
thdatthmonywasrcivd;
thnamofthprsonpayingthmony;
thamountofthmonyrcivd;and
adscriptionofthpurposofthpaymnt.
Refer: regulations 6H(3) and 6G(b)(c)(d)(e) and (f) of the Regulations
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18/47RalestatTrustAccounting-ARfrncManual14
examplOndmonstratsagnralpurpostrustrciptformatthatmts
thrquirmntsundrthRgulations.
ExampleOne:GeneralPurposeTrustAccountReceipt
eLLIOTeNTeRPRISeSPTYLTDAbN1234568912T/ASUNRISeReAL
eSTATe
LicnsdRalestatandbusinssAgnt TrustAccountRcipt
16HorizonStrt,Prth6000 No:00001
....../...../.....
Rcivdfrom.................................................................................................
Addrss...........................................................................................................
thsumof.......................................................................................................
for....................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
forandonhalfofElliotEnterprisesPtyLtdABN12345678912
Signd.............................................................................................................
Chqu $.................................
(namofsignatory)..................................... Cash $............
Total $............
Allrciptsshouldpostdtothcashrciptsjournalythnxtworking
dayandthrciptdtailsndtorcordd.
Receipts for rent and tenancy bonds
AdditionalrciptrquirmntsapplyundrthResidential Tenancies Act 1987
forrciptsforrntandtnancyonds.Whrrntispaiddirctlyyatnant
intoanownrsaccountataank,uildingsocityorothrsimilarody,a
rciptisnotrquird(sction33).Howvr,inallothrcassarntrcipt
mustproviddwithinthrusinssdaysfromthrntingpaid.
Anagntcanchoostousonrciptformatforothgnraltrustaccount
rciptsandrntrcipts,howvr,inordrtomtthrquirmntsofth
Residential Tenancies Act 1987arciptforrntmustshowthfollowing
dtails:
thdatonwhichthrntwasrcivd;
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19/47RalestatTrustAccounting-ARfrncManual 15
thnamofthprsonpayingthrnt;
thamountpaid;
thpriodofthtnancyinrspctofwhichitispaid;and
thprmissinrspctofwhichthrntispaid.
Inaddition,whnatnancyondispaidyatnant,undrth Residential
Tenancies Act 1987arciptwhichidntifisthdatonwhichthondwas
rcivd,thnamofthprson/spayingthond,thamountpaidandth
prmissforwhichitwaspaid,mustgivnrgardlssofthcircumstancs.
Prscridrcordsofthrntandtnancyondmonyrcivdshouldalso
kptythownroragnt.bondmonymustlodgdusingthprscrid
formforthlodgmntofscurityondmony.
Refer: Residential Tenancies Regulations 1989 Schedule 4
2:4 Interim receipts
Thusofintrimrciptsisnotadsiralpracticandisdiscouragdyth
board.Thrarcircumstancs,howvr,whnanintrimrciptmaynd
toissud(gwhnrprsntativsrcivfundswhiloutofthoffic,or
whnthagntsprintrisnotworking).Inthssituations,aduplicatofth
intrimrciptshouldfildinthrcordsandthintrimrciptshould
immdiatlyfollowdyaformaltrustrciptwhichiscrossrfrncdtoth
intrimrcipt.
Whnusingamanualsystmtoissuintrimrcipts,crossrfrncing
informationshouldincluddinthtrustldgr.Ifacomputrsystmisusd,
thformaltrustrciptshouldcrossrfrncdinthcomputrsystm.
Whnagntshavdistriutdintrimrcipts,thrciptsshouldrviwdonawklyasistonsurthformaltrustrcipthasnissud.
2:5 Trust deposit forms
Agntsshouldmakandrtainacopyofvrycompltdtrustaccountdposit
form.
Trustaccountdpositformsshouldshow:
thdatofpaymntintothauthorisdfinancialinstitution;
thnamandnumrofthagntstrustaccount;and
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whrthmonyispaidychqu,thnamofthdrawrandthnam
andranchofthfinancialinstitutionagainstwhichthchquwasdrawn.
Moststandardankdpositooksissudytradingankswillincludthis
information.
Sincallmonypaidintothtrustankaccountmustmatchdyatrustaccountrcipt,itisusfulforagnciswithmorthanonranchtonoton
thcopyofthankdpositformthsrialnumrsofthrciptswhichwr
issudinrspctofthmonyankd.Thispracticassistsinookkping,
andwillaidthauditorwhnchckingdtailsofrciptsissudagainstmony
ankd.Forxampl:
Bank Deposit Form
eastbranchofficrcipts:1642-1649 $6,41.00
Wstbranchofficrcipts:194-196 $26.48
Totaldposit $6,38.48
2:6 Trust account withdrawals
Asamattrofstpractic,allwithdrawalsmadfromthtrustaccountshould
madylctronictransfroratrustchqu.Whratrustchquisusd,
anagntmustrtainthchquuttsandnsursuchchquuttscontainall
rlvantinformation.
Torducthpossiilityofthftorfraud,itisrcommnddthattrustaccount
chqusarmarkdNotNgotialandarnotmadpayalincash.Thank
mayrqustdtomarkachchquNotNgotial-AccountPayOnly,orpurchasarurstamptodothis.Stampingalltrustaccountchquswhn
rcivdfromthankwillnsurthatnochqucaninadvrtntlyissud
withoutthisprotction.Additionally,anagntcancrossoutthwords'orarr'on
alltrustaccountchqustonsurthatthamountispaidtothcorrctprson.
Tonsurfundsarwithdrawnfromthcorrcttrustaccount,thchquook
shouldasilyidntifid,ghavingthnamofthtrustaccountwrittnon
thfrontofthchquook.Itisalsoimportanttonsurthatthankissusatrustaccountchquook,whrthdrawrdtailsforachchquwill
thsamasthtitlofthtrustaccount(rfrtoitm1.6).
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21/47RalestatTrustAccounting-ARfrncManual 1
Inmostcircumstancs,thagnt,orifthagncyisaodycorporatth
prsoninbona fidecontrol,shouldacompulsorysignatorytothtrust
accounttonsurthatadquatcontrolisxrcisdovrthtrustaccounting
activitisofmploysinthagncy.Thismasurwillrducthpossiilityof
inadvrtntrrorsandthft.Insomlargagncisitmaynotpossilfor
thprsoninbona fidecontroltoacompulsorysignatory.Inthiscasrgular
chcksshouldmadofthworkofthprson/srsponsil.
bfordrawingatrustaccountchqu,thrlvantclintldgraccountshould
rviwdtonsurthaccountcontainssufficintclardfundstocovrth
paymntsmad.Ifthmonyshavnpaidychqu,allowsufficinttim
forthchqutoclarfordrawingonthfunds.Chckwiththankforth
appropriatclaranctim.
Prsonsinbona fidecontrolshouldalsonsurthatchquooksarstordinascurplactorstrictaccsstoonlyauthorisdprsons.
Atnotimeshouldatrustledgeraccounthaveadebitbalance.
Achquuttorothrrcordshouldshowsimilarinformationtothatshownon
rcipts,including:
thdatofthchqu;
thnamofthprsontowhomthpaymntistomad;
thsrialnumrofthchqu;
thamountofthpaymnt;and
arifdscriptionidntifyingthnaturofthtransactionandthpurpos
forwhichthpaymntismad.
Thfollowingxamplofthminimuminformationthatshouldshownona
chquuttoronacomputrprintout:
Dat: DD/MM/200X
Paymntto: GorgWhitandAssoc.
Rasonforpaymnt: Dpositonsalof16elizaSt
Amount: $10,000.00
ChquSrialNumr: 6110
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2:7 Cash receipts journal and cash payments journal
Allrciptsandpaymntsoftrustmonyarsummarisdinthtrustaccount
cashjournals.Thjournalsarupdatdachtimmonyisditdor
withdrawnfromthtrustaccount.Thjournalsprovidasquntialand
chronologicalrcordoftrustaccountrciptsandpaymnts.Ifacomputrisd
systmisingusd,thprocdursandtrminologymaydiffrntutth
samssntialinformationmustrcordd.
ThjournalsarusdtoupdatthTrustAccountLdgrandforth
prparationofthmonthlyTrustAccountRconciliationStatmnt.Th
trustaccountcashjournalsmustcontainsufficintparticularsofallrcipts,
paymntsandtransfrstonaladquatdtailsofthtransactionsto
postdintothtrustaccountldgr.
Thrciptssctionisprpardfromthduplicatsoftrustaccountrcipts.
eachrciptnumrmustntrdinstrictnumricalsqunc.Ifarcipt
iscanclld,thnumrmuststillntrdandthwordcanclldwrittn
sidthntry.Thoriginalcopyofanycanclldrciptndtortaind
forinspctionythagntsauditor.
Rcommnddinformationtorcorddinthcashrciptsjournalinclud:
dat;
rciptnumr;
fromwhommonywasrcivd;
whymonywasrcivd;
trustldgrrfrnc;
amountrcivd;and
thtotalamountankdachday.
Thcashpaymntssctionofthjournalmustalsontrdinstrict
numricalsquncfrominformationrcorddonthtrustaccountchqu
utts(orduplicats).
Rcommnddinformationtorcorddinthcashpaymntsjournalinclud:
dat;
chqunumr;
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23/47RalestatTrustAccounting-ARfrncManual 19
namofprsontowhompaymntwasmad;
rasonforpaymnt;
trustldgrrfrnc;
amountofpaymnt;and
asutotalofpaymntsmadtoanyonprsononaparticulardat.
Refer: section 68(6) of the Act
2:8 Trust ledgers
Thtrustldgristhmaincomponntofthtrustaccountingsystm.Th
ldgrsummarissallofanagntstrustaccounttransactions.Thdtailsand
amountsofthmonyhldyanagntonhalfofthirclints,ndto
showninthtrustldgratalltims.
Aclintldgraccountshouldopndforachprsononhalfofwhoman
agntholdstrustmonyandforachtransactionthatinvolvstrustmony.
Thetrustaccountandtheindividualclientledgeraccountsmustnevergo
intodebit.
Ifanagnthandlssalsandarntrollandchoosstorunatrustaccountfor
achopration,thagntwouldmaintainthfollowingldgrs:
arntaltrustaccountldgrwithanindividualclintldgraccountfor
achlandlord/proprty;
atnancyondtrustaccountldgrwithanindividualclintldgraccount
forachtnantforwhomthagntholdsatnancyond;and
asalstrustaccountldgrwithanindividualclintldgraccountfor
achvndor/purchasr.
Clintldgraccountsmustsatisfythfollowingcritriairrspctivofwhthr
thyarproducdmanuallyorycomputr:
individualclintldgraccountsmustshowacontinuousrunningalanc
inordrtodisclosachclintsntitlmntsatanytim(itisnotnough
thatntitlmntscancalculatdorotaindyrfrnctosusidiary
rcords);
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alltransactionsmustshowninthircorrctchronologicalsqunc
andthdatofachtransactionmustshown(ifthisisnotdon,th
amountsrcorddinthalanccolumnwillmaninglssandthclint
ldgraccountswillfailtoshowthtrupositionasrquird);
thtrustclintldgraccountsndtoupdatdythnxtusinssday;
whrrcordsarmaintaindycomputr,thaccountsmustradily
convrtilintoprintdform(thailitytoproducavisualimagona
scrnisnotsufficint);and
allclintldgraccountsshouldcontainnoughdtailsothatthnaturof
thtransactionscanclarlyundrstood.
eachclintldgraccountmustcontainatlastthfollowinginformation:
thnamandaddrssofanagntsclint;
thnamsofothrpartistothtransaction;
thdatofachtransaction;
thnamsofprsonsfromwhommonywasrcivdortowhommony
waspaid;
thrasonforthmovmntofmony;
thamountofmonypaidorrcivd;
ithrthchqunumr,rciptnumrortransfrjournalfolionumr
thatmatchsthmovmntofmony;and
thalancaftrachntry.
Asamplldgrlayoutisshownlow:
Sample Ledger
ClintNam AccountNo:
Addrss:
DscriptionofTransaction:
.............................................................................................................................
.............................................................................................................................
.............................................................................................................................
DatParticularsJnlRf DitCrditbalanc
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Agntssomtimsmaintainasurplusamountwithinthtrustaccounttoasor
anyinadvrtntdficincisthatmayarisfromdishonourdankchqusor
ankchargs.Innocircumstancesshouldextrafundsbekeptinthetrust
account.
Auffrfundcannotusdtooffstankfsorforanyothrrason.Agnts
shouldclarthircommissionorfsaccounttothirgnralaccountatlastwkly.Thboardstronglyrcommndsagainstthpracticofrtaining
commissionsandmanagmntfsinthtrustaccountforanxtnddpriod
oftim.
Thrmovalofthsxcssfundsfromthtrustaccountisforthnfitof
allpartis.Ifanagntmaintainsauffrinatrustaccount,thnthywillnot
awarwhnthtrustaccountisovrdrawn.Thismansthyarlssliklyto
altoidntifypoortrustaccountmanagmntorfraudymploys.
Thprsoninbona fidecontrolisrsponsilforchckingachldgraccount
achmonthtodtctifspcificldgrsarovrdrawn,andtocorrctany
rrors.
Refer: section 68(6)(a) and 68(6)(b) of the Act
2:9 Trust account transfer journal (general journal)
Anagntmaywishtotransfrfundstwnvariousclintldgraccounts
withinthtrustldgr.Anxamplingwhnaclintsllsonproprtyand
susquntlyuysanothrproprtyfromanothrclintofthsamstat
agnt.Inthissituationitisnotncssarytowithdrawthfundsfromthank
trustaccountandrdpositthfunds.Rathrthtransfrcanachivd
throughappropriatclintldgraccountntrisandrcorddinthtrust
accounttransfrjournal.
Throlofthtrustaccounttransfrjournalistoprovidaclaraudittrail
twntakingmonyfromonclintldgrandcrditingittoanothrclint
ldgr.Thusofatransfrjournalisnotcompulsoryunlsstransfrsar
mad.
Animportantlmnttormmrinrspctoftransfrringfundstwn
clintldgrsisthatinmostcassanauthorityinwritingwillrquirdfrom
thclint/sconcrnd.
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Personin
bona fide
controls
signature.
Bob Smith
Thtrustaccounttransfrjournalmustincludthfollowinginformation:
thdatoftransfr;
thnamofthtrustldgraccountfromwhichthmonyistransfrrd;
thnamofthtrustldgraccounttowhichthmonyistransfrrd;
anotationorcodindicatingthpurposforwhichthmonyistransfrrd;and
thamountofmonytransfrrd.
Asparattransfrjournalmustmaintaindforachtrustaccount.
Transfrjournalntrisquattoothapaymntandarciptoftrustmony
andthrfor,mustfullyrcordd.explanatorynotsforachjournalntry
shouldincludd.Rciptandpaymnttransactionsndtosupportdysigndtrustdocumnts(rciptformsandchquutts).Thagntshouldalso
signtransfrjournalntrisasvidncofthagntsauthorisationofthntry.
Torducthincidncofrrororthft,thprsoninbona fidecontrolmust
signoffallntrisinthtrustaccounttransfrjournal.
Asuggstdlayoutforthjournalis:
Trust Account Transfer Journal (General Journal)
DR CR
Date Particulars LedgerRef TransferFrom TransferTo
$ c $ c
4/8/01 S.Jams J1 10,000.00
4/8/01 R.Williams W3 10,000.00
Monyfromsalof
21AlrtRd,Knwick
transfrrdfordposit
on32CanningSt,
Armadal
Thisjournalisusdalsowhnrrorsrquircorrctionsuchaswhnth
incorrctnamofaclinthasnusdandthtransactionndsto
canclld.
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27/47RalestatTrustAccounting-ARfrncManual 23
2 :10 Recording withdrawals of commission
Whncommissionisdutothagnt,atrustchqumustdrawntotransfr
thfundsfromthclintsldgraccounttothagnt,ortransfrrdtoaank
accountylctronictransfr.
Whncommissionisdufrommorthanonclint,itisnotncssarytodrawindividualtrustaccountchqusforachitmofcommission.Asingltrust
accountchqumayprpardinstad,orthfundstransfrrdlctronically.
Thisshouldonlyoccurifthtransfrjournalorcashpaymntsjournalntris
armadlisting,achcommissionwithdrawalandthclintldgraccount,to
whichitrlats.
Thagntmustnsurforsalstransactionsthatsttlmnthasoccurrd
forwithdrawingthmony.Forothsalstransactionsandproprtymanagmnttransactions,anagntshouldhavwrittnauthorityfromthclint
towithdrawthpaymntfromthtrustaccount(sPart1.12).
2 :11 Balancing a trust account at the end of each month
Tonsurthatthrquirmntsofsction68(6)(d)ofthActarmt,anagnt
shouldcompltatrustaccountrconciliationstatmntatthclosofusinss
ofachmonth.Thisstatmntrconcilsthcashrcordsofthusinsswiththrcordsofthank.Itshowsthalancsofthtrustaccountcashjournal,
thanktrustaccountstatmntandthtotalofthtrustaccountldgrs.Th
purposofthxrcisistomatchallthrtotalsaftrtakingintoaccountany
rconcilingitms.
Thmonthlytrustaccountrconciliationshould:
asatthclosofusinssofthlastdayofthmonth;
compltdwithin10workingdaysofthndofthmonth;
vrifid,signdanddatdythagntor,ifthagntisaodycorporat,
thprsoninbona fidecontrol;and
rtaindtoprsntdtothauditorforanyaudit.
Duringholidaypriods,suchasthChristmaspriod,thsrquirmntsfor
monthlytrustaccountrconcilliationsstillapply.
Inprparingaankrconciliation,whichformsthmajorpartofatrustaccount
rconciliation,thagntshouldawarthatthankalsorcordscash
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rciptsandcashpaymnts.Whilthankalsorcordsthisinformation,
itrcordsitfromadiffrntprspctivtothatofanagnt.Forxampl,
cashrciptsthatarditsinthagnts'cashatankaccount'ntrisin
thjournalarshownascrditsonthankstatmntitslf.Similarly,cash
paymntsthatapparascrditsinth'cashatankaccount'ntrisinth
agntsjournalwillshownasditsonthankstatmnt.
Oftn,thrwilldiscrpancistwnthtrustrcordsandthank
statmnt.Oncanagntcomsfamiliarwiththsdiscrpancis,thywill
findthprocssoftrustaccountrconciliationcomsasirtoadministr.
Thprocdurforprparingaankaccountrconciliationisasfollows:
Addthcashcolumn(total)ofthcashrciptjournalforthparticular
month(gMarch).
Addthcashcolumn(total)ofthcashpaymntsjournalforthparticular
month(gMarch).
Radthankstatmntforthparticularmonth(gMarch)andchck
thatthmonydpositdachdaywntintothankaccount.Ths
amountswillntrdascrditsonthankstatmnt.
Chckthatallthchqusdrawnapparinthankstatmnt.Ths
amountswillshownasditntris.Chckalsothatallchqusthatapparinthankstatmntwrinfactauthorisdandissud.
Usingapncil,tickoffachntryonthankstatmntagainstth
corrspondingntryinthcashjournals.Itmsthatmayapparinth
ankstatmntutnotthcashjournalcouldadirctdposit.Dal
withadirctdpositywritingarcipt,datingitandcompltingth
dtailsofthrcipt,makingsurthdatonwhichthdpositwas
actuallycrditdtothaccount.entrthisinformationintothcash
rciptsjournalandcrditthappropriatclintldgraccount.Dirct
dpositsffctdylctronictransfrwillnotrquirissuofarcipt.
Chckthatalllctronictransfrshavncorrctlyrcorddand
accountdfor.
Dpositsthatarnottickdinthcashrciptsjournalrprsnt
outstandingdpositsandwillusdlatrinthankrconciliation
statmnt.
Chqusapparinginthcashpaymntjournalthathavnotntickd
arrfrrdtoasunprsntdchqusandwillusdinthprparation
ofaankaccountrconciliationstatmnt.
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Thalancofthankstatmntandtrustcashatankldgr(oralanc
asprtrustcashjournal)shouldthsamaftrmakingadjustmntsfor
outstandingdpositsandunprsntdchqus.Ifthydonot,anrrorhas
nmadandwillndtoidntifid.
Thfollowingcontrolsndtoconductd:
chckadditions;
chckntrisfromrciptstothcashrciptsjournal;
chckntrisfromchquuttsintothcashpaymntsjournal;
maksurallunprsntdchqushavnadddtogthrcorrctly;
maksuralloutstandingdposits,includinglctronictransfrs,hav
naccountdfor;and
chckthankstatmntforanyankchargsthatmayhavn
ditdtothtrustankaccount.
Anagntshouldrqustthatthankdosnotditthtrustaccountwith
ankchargscausthiswillcratadficincy.Howvr,anksmay
inadvrtntlydittrustankaccountswithcrtainchargs.Thagntshould
dalwiththschargsimmdiatly.
Balance per bank statement
Thisisthfinalalanconthankstatmntanditisfromthisalancthat
thrconciliationwillmad.bankstatmntsndtorcivdatlast
monthly.Inpractic,ankstatmntsarrcivdmorfrquntly,vndailyin
somcass.Nothowthankalancisdscridwiththtrm 'Cr'(crdit
orinfunds).
Add outstanding deposits
Thsardpositsthathavntaknupinthtrustcashrciptsjournal(or
crditsidofthcashook)uthavnotytntaknupythank.Thy
arasilyidntifidcausthyarthdpositsrmaininguntickdaftrth
trustcashrciptsjournal/cashookandankstatmnthavncompard.
Whrthrismorthanonoutstandingdposit,alistmustmadshowing
alongsidachdpositthdatasdisclosdythtrustcashrciptsjournal/
cashook.Outstandingdpositsaradddtothalancprankstatmnt,causwhnvntuallytaknupythank,thywillincrasthfundshld
inthagntstrustaccount.
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30/47RalestatTrustAccounting-ARfrncManual26
Less unpresented cheques
Unprsntdchqusardaltwithinthsammannrasoutstanding
dpositsandwhnlistd,aridntifidychqunumraswllasamount.
Thyardductdcauswhnprsntdtothankthywillrduc
thtrustfundsinthagntstrustaccount.Unprsntdchqusshould
followdupaftrthrmonths.
Balance of the trust cash at the bank
Ifthoutstandingdpositsaradddtothalancofthankstatmntand
thunprsntdchqusardductd,thrsultingfigurwillaalanc
whichshouldalwaysadit.
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Example:Trustaccountreconciliationstatement
RealAgent&COPTYLTDTrustAccountReconciliationStatement
asat31August2001
$ $
1 TrustCashJournal
balancroughtforwardfrom31July2001 6,500.00
Add:totalrciptsforAugust 52,000.00 119,500.00
Dduct:totalpaymntsforAugust 48,000.00
Balanceasat31August2001 71,500.00
2 FinancialInstitutionTrustAccountStatement(FIS)
balancasprankstatmnt31August2001 8,000.00
Add:dpositsnotcrditdonFIS Nil 8,000.00
Dduct:unprsntdchqus 35 2,500.00
358 4,000.00 6,500.00
TotalTrustmoneyat31August2001 71,500.00
3 TrustLedgerBalances
Totalofattachedlistingofledgerbalancesasat 71,500.00 31August2001
Signd:Bob Smith
Trustrconciliationstatmntsincludingrlatdankstatmntsmust
rtaindasthyformpartofthtrustaccountrcords.
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Part 3. trust aCCount auDits
3:1 What are the annual duties of an agent regardingtrust account audits?
Agntswhoholdacurrnttrinnialcrtificatmustcausthtrustaccountsto
auditdythapprovdauditorandthauditrportlodgdwiththboard
(sction0(1)).Ifthagnthasnothldanytrustfundsduringthyar,thn
thagntisnotrquirdtohavanauditandmustinstadlodgastatutory
dclarationtothisffct(sction86).
Allauditrportsorstatutorydclarations(asappropriat)arrquirdto
lodgdwithinthrmonthsofthndofachcalndaryar.Itisthauditors
rsponsiilitytodlivrthauditrporttothboard.
Refer: section 70(3) of the Act
3:2 What are an agents duties in appointing an auditor?
bforanagntcanrcivorholdanytrustmonythagntmustappointan
auditor.Tocomplywithsction2(3),anagntmustdisclostothboardany
rlationshipyloodormarriag,oranyusinssdaling,withthirnominatdauditor.Thboardwillconsidrachinstancofdisclosuronacas-y-cas
asis.
Whranauditorhasarlationshiptoanagntyloodormarriagthrisa
clarconflictofintrstthatcouldndangrthauditorsindpndnc.Whr
anauditorhasusinssdalingswithanagnt,thboardwillconsidrthfacts
inachcas,howvr,gnrallythboardwilldisqualifyanauditorwhrthat
auditoralsoactsasthagntsgnralaccountant.
Incrtaincircumstancs,forxamplinruralaras,asuitalyqualifidauditor
maynotavailal.Insuchcassthboardmaynotifythagntofits
intntiontodisqualifythauditorandthagntisthngivnthopportunityto
outlinthrasonswhythauditorshouldrtaind.
Toauditanagntstrustaccount,aprsonmustargistrdcompany
auditor,undrPart9.2ofthCorporations Act 2001 (Cth).Inrgionalaras
whrnoqualifid
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companyauditorsaravailal,thboardmayapprovanothrprsonwith
appropriatqualificationsasanauditor.
Refer: section 72(2) of the Act
3:3 What are an agents responsibilities to the auditor?
Aspartofthauditprocss,thagntisrquirdtoprparastatmntforth
auditor.Thisstatmntshouldshowdtailsofallmonyhld,aswllasdposit
rciptsandngotialorarrscuritisthatarhldinthnamofth
agntandrprsntmonyinthagntstrustaccount.Thstatmntmady
thagntmustvrifidystatutorydclaration.
Inthstatmnttothauditor,thagntisrquirdtoprovidfulldtailsofth
trustaccountshld,including:
dtailsofthnam/s,accountnumr/sandfinancialinstitutionnam
andranchnamwhrthtrustaccount/sarmaintaind(thisrporting
rquirmntalsoapplistoclintssparatintrstaringtrustaccounts
andtnancyondtrustaccounts);and
thalanchldinachtrustaccountasatthauditdat.
Aftrxaminingthisstatmnt,thauditorwillrturnthstatmnttothagnt
togthrwiththauditrport.Acopyofthagntsdclarationandstatmntofalancforachtrustaccountisrquirdtoattachdtothauditrport
andsumittdtothboard.Alltrustaccountrcordsmustmadavailalto
thauditoratvryauditorwhnthauditorrasonalyrqusts.
Thagntisrquirdtoprovidthauditorwithanannualstatmntandth
prviousyarsstatmnt,vrifidystatutorydclaration.
Refer: section 80, section 81 of the Act
3:4 What are the duties of an auditor?
Anauditormustaudittrustaccountsinaccordancwithaccptdauditing
practic,includingslctivtstingwhnthauditorconsidrsitappropriat.
Thauditormustalsosatisfidthatthtrustrcordsarkptinaccordanc
withthrquirmntsofthAct.Thauditofanagntstrustaccountsisa
compliancauditandwhrmatrialitydosnotapply,thauditoristorport
vrydiscrpancytothboard.
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Oncompltionofanauditthauditorisrquirdtodlivrthoriginalaudit
rporttothboard.Gnrally,thauditrportmustdlivrdtothboardy
31Marchachyar.Thatis,withinthrmonthsofthndofthauditpriod,
whichisfrom1Januaryto31Dcmrachyar.
Itisthdutyofthauditortorportanyrlvantissustothboard.Th
auditorisalsorquirdtoprovidcopisofanymanagmntlttrsissudto
thagntandattachthstothauditrport.
ThRebApulicationA guide to auditing real estate and business agents trust
accountsisdsigndtoassistauditorsandagntsundrstandthrquirmnts
foranauditofanagntstrustaccount.
Refer: section 70(2) of the Act
How should an agent respond to an auditors recommendations?
Anagntmustpromptlyimplmntanyrcommndationsmadythauditor
whrthrcommndationsarisfromarachofthActorthRgulations.
Thboardtratsanyrachsofthtrustaccountprovisionsvrysriously.
Ifanagntconsidrsanauditor'srcommndationstounfairor
unrasonal,thagntmaywrittothboardstatingthojctionsand
rqustingthboardsconsidration.
3:5 What are an agents duties in changing an auditor?
Anagntmustcontinutongagthstatutoryappointdauditorunlssth
boardapprovsachanginthappointmnt.
Agntsskingtochangthirstatutoryappointdauditormustlodgan
applicationwiththboardnotlatrthanonmonthaftrthndofthyarto
auditd.Forxampl,whrthauditpriodxpirson31Dcmr2005,
anapplicationmustrcivdythboardy31January2006.Applications
forachangofauditorwillnotaccptdaftrthistimdutothproximity
withthdudatforprovisionofthannualaudit.
Allagntsskingtochangthirstatutoryappointdauditorndstoprovid
tothboard:
1.awrittnrqustfromthagntrqustingthchangofthappointdauditor,togthrwithrasonsforthchang;
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2.alttrfromthcurrntauditorrlinquishingstatutoryrsponsiilityand
ithrincludingastatmnttothffctthatthere is nothing that they are
aware of that should be brought to the Boards attention,ordscriingany
impdimntsplacduponthconductorscopofthaudit;and
3.alttrofaccptancofappointmntfromthproposdrplacmnt
auditor.
Thboarddosnotconsidrthatdlayscausdyachanginth
appointmntofauditorsisanaccptalrasonforgrantinganxtnsionin
timforthsumissionofthauditrport.
Refer: section 73(3) of the Act
3:6 What if a real estate agency closes?
Thclosingofaralstatagncycancomplx.Somguidlinsar
providdlowutitisrcommnddthatagntssklgalandaccounting
advicisotaindtoaddrssallofthissusinvolvd.
Ifthusinssislicnsdasapartnrshiporodycorporat,writtnnotification
mustgivntothboardofthdatofclosurandsurrndrofthlicnc
andtrinnialcrtificatofthusinss.Ifthusinssisingconductdy
asoltradr,writtnnotificationmustgivntothboardofthcssationofusofthusinssnam.Thagntstrinnialcrtificatshouldalso
rturndtothboardforndorsmnt.Aswllasadvisingthboard,th
nominatdauditorofthusinssmustalsoadvisdofthclosurofth
usinssandallclintsofthusinssshouldnotifid.
Ifthproprtymanagmntportfolioofthagncyisingtransfrrdor
purchasdyanothragncy/ntitythincomingagncymustotainanw
writtnauthorityfromthrgistrdpropritororauthorisdprsonofachproprtyundrmanagmntforanymonycantransfrrdtothnw
agntstrustaccount.
Ifthrisachangtothntitywhichownsthusinssand/ortransfror
closurofausinss,atrminationauditofthagncywhichiscasingtocarry
onusinssmustcarridoutwithinthrmonthsofthchangoccurring(th
auditormustdlivratrminationauditrporttothboardwithintwomonthsaftr
thndofththrmonthspriod).
Iffundshldinthtrustaccountcannotdisursdwithinthrmonths
followingthclosurofthagncy,thymaydisursdtoanothragnt
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orsolicitorstrustaccountuponwrittnagrmntythpartiswhoownth
funds.
Ifunclaimdmonyrmainsinthtrustaccountthymaydisursdin
accordancwiththprovisionsofthUnclaimed Monies Act 1990(slow).
Allaccountingrcordsmustkptfornotlssthansixyarsfromthdaton
whichthmonywasrcivd.
Refer: section 70(8) of the Act
3:7 Unclaimed trust money
ThagntmustnotifythWstrnAustralianStatTrasurr(thTrasurr)
ofanyunclaimdmonythatishldinatrustaccountforsixyarsormoras
at31Dcmrachyar.Undrsction8ofthUnclaimed Monies Act 1990,
thismonyistonotifidtothTrasurrnotlatrthan31Januaryinth
succdingyar.
ThUnclaimed Money Act 1990providsforvoluntarypaymntswhrth
monyhasnhldforapriodofnotlssthantwoyars.Whranagnt
casstoopratandthtrustaccountisingfinalisd,thDpartmntof
TrasuryandFinanc("Trasury")willaccptunclaimdmonythathasn
dpositdforlssthantwoyars.
Trasuryrquststhatagntsnotthfollowingpointswhnmakingapaymnt:
allmonyinthattransfrmusthavnhld,unclaimd,foratlasttwo
yars;
holdrsofunclaimdmonymustprovidTrasurywithanannual
notificationdtailingthunclaimdmonythatthyholdasat31
Dcmrachyary31Januarythfollowingyar;and
Trasurymustproviddwithacovringlttr,achquforthamount
ingtransfrrdandthfollowingpaymntinformation:
i. namofthownrofthmony(Trasurymaynotaccptmony
whrownrshipisindisputorunclar,gthagntshouldnotlist
othasllrandauyrasthownr);
ii. ownrslastknownaddrss(strtnam);
iii.ownrslastknownaddrss(suur/city);
iv.amountpayal;
v. datchquissud;and
vi.dscriptionofthpaymnt.
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Plasnot,anagntistostatunknownonthcovringlttrwhr
informationisnotavailal.Agntsshouldawarthatitisarquirmnt
ofSction68(6)(a)ofthActtokpfullandaccuratrcordsofallmony
rcivdandpaid.
ThrarsparatprovisionsundrthResidential Tenancies Regulations
1989 forthdisposalofunclaimdscurityonds(rgulation15).Ifsixmonthshaslapsdsincthtrminationofarsidntialtnancyagrmntandth
ondhasnotndisposdofinaccordancwithschdul1ofth Residential
Tenancies Act 1989,thnthondholdrmustgivnoticinwritingtoth
ownrandthtnantinwhosnamsthscurityondishld.Ifaftr60days
fromthdatofthnoticthscurityondisstillinthhandsofthond
holdrthnthondholdrshouldpaythamounttothUnclaimdScurity
bondAccount.ThisisanaccountinthRntalAccommodationFund.Agnts
whorquirfurthrinformationonthisshouldcontactthbondAdministratorat
thDpartmntofConsumrandemploymntProtction.
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Part 4. Preventing theft anD frauD
4:1 Early indicators of theft and fraud
Unfortunatly,asinanyothrusinss,thftandfraudcanoccurfromwithin
aralstatagncy.Inthmajorityofcassthsactsarcommittdyan
mployofanagncyandoftnthprsonin bona fidecontrolofthagncy
isnotawarofthactivitisofthmploy.
Commrcialcriminalsarliklytoidntifyandtargtorganisationsprcivdas
ingsofttargts.Aproactivapproachtoprvntionisssntialandthr
arcrtainwaystomakanagncyahardtargt(gadvisstaffoninduction
thatitisagncypolicytorfrallcriminalissustothpolic).
Furthr,itisinthintrstsofthagncyandinparticularthprsonin
bona fide control,tonsurthatproprcontrolandsuprvisionofstafftaks
plac.Thyhavlgalrsponsiilitisinrlationtothprotctionoftrust
accountmony.Thagntcouldvnrsponsilforrimursingmony
misappropriatdymploys.
Thprsoninbona fide controlcandomuchtolimitthpossiilityofthftand
fraudoftrustfunds,andothrmony,yputtinginplacsomintrnalcontrolsandarlyindicators.
Ifonormorofthfollowingsmsfamiliar,thagncycouldhavaprolm:
originalsupportingdocumntsfortransactionsarmissing;
documntshavnaltrd;
outstandingorincompltaccountrconciliations;
highlvlofdtorwrit-offs;
largvolumofcrditnots,orunxplaindcrditnots;
dtrioratingfinancialposition;or
auditorsaccsstopoplorinformationisrstrictd.
Agntscannotrlysollyonstatutoryappointdauditorstoidntifythftand
fraudinthiragncy.Thmisappropriationcanoccurwllforanannual
auditisprformd.Thauditoralsorlisonthaccountingworkwithinth
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agncy,whichmayhavnfalsifidythprptrator.Forthsrasons,
itisrcommnddthatagntsdiscussintrnalcontrolmchanismswiththir
statutoryappointdauditor.Thprsoninbona fidecontrolcanaddrssa
numrofpotntialprolmsy:
makingpriodicchcksofthworkofmploys;
involvingthmslvsinankrconciliations;
maintainingcontrolovrchquooksandrciptooks;and
undrstandingandopratingthcomputrsystm.
Anindpndntlymanagdwhistl-lowingfacility(tlphon,faxor-mail)
canalsoanffctivandrlativlychapwayinwhichtoncouraghonst
mploystorportsuspicionsofthftorfraudtothirsupriors.
4:2 Computer systems
Actsofthftandfraudalsooccurinagnciswhrcomputrsystmsar
usd.Thiscanoccurwhnthagntisnotconvrsantwiththsystminusor
dosnotmonitorstaffwhohavaccsstothsystm.Thprsonin bona fide
controlndstopayspcialattntiontothfollowingaras:
crationofnwldgraccounts;
usandauthorisationoftransfrjournals;
procdursusdtodispatchchqus;
paymntoftradsmnorothrxpnss;and
nsuringthatthrarsufficintfundstocovrchqusforthyar
drawn.
Thfollowingarsomprolmsthatcanmrgfromcomputrsystmsusd
yagncis:
Usofpr-coddrcipts(orpotntialrcipts)arproducdyth
computrforvrytransactionpriortothrciptofmony.Uponrcipt
ofpaymnt,thprocssingofthtransactionautomaticallygnrats
anwadvancrcipt.Thmainprolmwiththissystmisthatwhil
rciptsargnratdsquntially,thyarnotissudandaccountdfor
squntially;and
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Thordrthattransactionsarprintdwithinthldgr.Itispossilfora
ditalanctoapparinthldgrthatisnotatruditalanc.This
occurswhrapaymntandrciptrlatingtoaparticulartrustldgr
accountoccuronthsamday,andthcomputrprintsthpaymnt
forthrcipt.Thrarsvralmajorsystmsavailalthatwillnot
allowapaymnttoprocssdifthclintldgrrflctsanovrdrawn
situation.
Thprsoninbona fidecontrolshouldconvrsantwithallcomputrsystms
usdtomaintainrcordsandaccountingsystmsfortrustfundsandnotrlyon
onortwostaffmmrs.Alsothprsoninbona fidecontrolisrsponsil
formaintainingackupcopisofcomputrrcordsandforthirscurstorag
off-sitasthsrcordsarinvalual,particularlyifthrisathftorfirat
thagncysprmiss.
4:3 Bank reconciliations
Thtrustaccountisrquirdtoalancdcorrctlyandthaccounting
rcordshldwithinthagncyshouldalancwiththrconcildalanchld
ythankatlastatthclosofusinssachmonth.Incorrctalancs
fromthankstatmnthavnusdtofalsifymonthlyrconciliationsand
ffctarconciliationtwnthcashook,ankaccountandclinttrust
ldgralancs.
Thprsoninbona fidecontrolndsto:
(a)xamindailyrciptsagainstdailyankingstodtctshortankings
inwhichcashrcivdtodayisusdtocovrupmonymisappropriatd
ystrday;
()makpriodicalchcksofthankingandthprocdurforcorrctly
alancingthaccounts;
(c)chckforfalsinvoicsynsuringthatthfontandothraspctsofth
invoicsarconsistnt;and
(d)followupanywarningsproviddythcomputrsystmimmdiatly.
4:4 Transfer journal
Alladjustmntsandvariationstwnthcashookandankstatmntshouldvrifidythprsoninbona fidecontrol.
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4:5 Receipt books
Thprsoninbona fidecontrolmustmaintainstrictcontrolofallrciptooks,
particularlywiththosnotinus.Thiswillmakitasdifficultaspossilforany
prsontoissuarciptimproprlyandmzzlaclintsmony.Squnc
chckdpositsagainstrciptsachmonthandstalishrciptcancllation
procdurs.
4:6 Agency management
Thmploywhomanagsthaccountsshouldnotrsponsilforanking
thmony.Inlargroffics,dutisshouldrotatdtwnmploysso
thatthiractivitisarmonitordyothrsinthagncy.Thprsoninbona
fidecontrolmustnsurthatmploystakholidaysandthatothrstafftak
ovrthirdutiswhilthmployisasnt.Priodicallyrviwworkofan
mploywhohassolrsponsiilityforthcomputrsystm.
Whrpossilthprsonrcivingtrustfundsandissuingrciptsshouldnot
thprsonchargdwiththprparationandankingoftrustfunds.Prohiit
thusofIOUsymploysandalsostalishprocdursforthfollowupof
outstandingmony,withattntiontothdivisionofdutistwnmploys
handlingqurisfromclintsandthosinvolvdinthcashtransactions.As
partofthpolicisofthagncy,thprsoninbona fidecontrolistoinstructnwmploysthatmisappropriatdfundswillrportdtothpolic
immdiatlyandthatintrnalcontrolsystms,includingotainingcopisof
chqusthathavnprsntdtothank,arinplac.
4:7 Cash payments or cheque payments
Allpaymntsfromthtrustaccountshouldmadychquorauthorisd
lctronictransfr.Allchqusthatardrawnshouldhavasupportinginvoicordocumntation.Thprsoninbona fidecontrolistonsurthatchqus
arcrossd'accountpayonly-notngotial'orrplac'arronly'with
'ordr'.
Thprsoninbona fidecontrolshouldacompulsorysignatorytothtrust
account.Ifnot,thnasystmshouldputinplactorviwchqusthatar
issudonthtrustaccount.Thprsonin bona fidecontrolistorstrictaccss
tothtrustaccountchquook.Printoutsofthchqusissudshouldotaindtonsurthatthchqunumrsarconscutiv(somtimsthft
occurswhnanmployissusortakschqusfromthottomofth
chquook).
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Ifthagncyopratsmorthanontrustaccountandthrformorthanon
chquook,achchquookshouldradilyidntifialtothaccountto
whichitrlats.Thprsoninbona fidecontrolistoattaincopisofprsntd
chqusonapriodicasistonsurthatnochqushavnforgd.
4:8 Trust account management
Trustaccountsshouldnottratdasthagncysgnralankaccount.
Trustfundsndtopaidouttothrightfulownrassoonaspossilaftr
thcompltionofatransaction.Commissionsonsalsartopaidintoth
agncysgnralaccountassoonassttlmnthasoccurrd.Disursmnts
shouldnotmadfromthtrustaccountcontainingunclaimdcommissions.
Agntsndtodrawcommissionsfromthtrustaccountaftrsttlmntand
paythmintothagncysaccountfromwhichdisursmntscanmad.
Whrlandlordsarovrsasorintrstat,arrangmntsshouldmadto
transfranyfundsowdtothlandlordsankaccount.Iflargamountsof
monyarallowdtoaccruinatrustaccount,thriskofthftandthscal
ofthpotntialthftisincrasd.Thrfor,transactionpaymntsandrcipts
shouldchckddailyandtrustchqusshouldnotusdtopaygnral
agncycosts.
4:9 What must an agent do on becoming aware of fraudor theft?
Ifanagntcomsawarthatmonyhasnstolnfromthtrustaccount,
thagntshould:
notifythboard,advisingthdatonwhichththftoccurrd,thamount
involvd,howththftoccurrdandanyactiontakntorctifythloss;
contactthauditortoconductaspcialtrustaudittoattmpttoquantifythamountofthmisappropriationandpossilyidntifythculprit;
contactthPolicandadvisofthmisappropriationoftrustmonyand
thataspcialauditisingconductd;
ifpossil,rplacthmisappropriatdamountimmdiatly;
alrtthprofssionalindmnityinsurr;and
informthfranchisor,ifopratingundrafranchisagrmnt.
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GLOSSARY
AccountMansthboardIntrstAccountstalishdundrsction125(1)ofthAct.
Act(the)ThRalestatandbusinssAgntsAct198.
AgentAprsonwhoisaralstatagntorausinssagnt,orotharalstatagntandausinssagnt.
Approved
MansapprovdyRebA.
AuditorAprsonappointdundrthActtoauditthtrustaccountsofanagnt.
Authorisedfinancialinstitution
Mansaank,asocity,oranyothrodythatisprscridorthatlongstoaclassofodisthatisprscridythAct.
Bank
AankasdfindinsctionfivofthbankingAct1959ofthCommonwalth,oraankconstitutdyorundrlawofthStat.
Bankaccount
Anaccountkptwithaank,socityorothrsimilarody.
Board(the)
ThRalestatandbusinssAgntsSuprvisoryboard.
Businessagent
Aprsonwhosusinssithralonoraspartoforinconnctionwithanyothrusinss,istoactasanagntforconsidrationinmonyormonysworth,ascommission,rward,orrmunration,inrspctofausinsstransactionasdfindythissction,
utdosincludaprsonwhosusinssistoactyrasonthat;
a)h/shisappointdyacourtasarcivrorrcivrandmanagrofthusinssofanothr;or
)h/shisanofficialrcivroftrustwithinthmaningof
thbankruptcyAct1966,ofthCommonwalthoranyActinamndmntorsustitutionofthatAct.
Businessday
AdayothrthanSaturday,Sunday,orapulicholiday.
Businesstransaction
Mans:
a)asal,xchangorothrdisposalandapurchas,xchangorothracquisitionofausinssandanysharorintrstinausinssorthgoodwill,throf;and
)includsanysal,xchang,orothrdisposalandanypurchas,xchangandothracquisitionofgoods,chattlsorothrproprtyrlatingtoausinsstransactionof
thkindspcifidinparagraph(a);and
c)alsoincludsanoptiontontrintoausinsstransaction;ut
d)dosnotincludthsal;xchang,oracquisitionofasharinthcapitalofaodycorporatcarryingonausinssoranoptioninrspctthrof.
DOCEPThDpartmntofConsumrandemploymntProtction.
Licensedagent
AralstatagntisaprsonwhoholdsaralstatlicncandcurrnttrinnialcrtificatundrthAct.
Licensee
Mansanaturalprson,firmorody
corporatlicnsdundrthAct.
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Personinbonafidecontrol
Somtimsdscridasagntinbonafidecontrol.Alicnsdprsoninaralstatusinsswhoisrsponsilforthadministrationofralstattransactions
andthsuprvisionofprsonsinvolvdinthostransactions.
Principal
Thtrmprincipalinthralstatindustryrfrstothclintofthagnt.Thtrmdosnotrfrtousinssownrsofdirctorsasisthcasformostothrindustris.
REBA
ThRalestatandbusinssAgntsSuprvisoryboard.
Realestateagent
Aprsonwhosusinss,ithralonoraspartofaninconnctionwithanyothrusinss,istoactasanagntforconsidrationinmonyormonysworth,ascommission,rwardorrmunration,inrspctoraralstattransactionasdfindythAct,utdosnotinclud
aprsonwhosusinssistosoactyrasonthat
a)hisappointdyacourtasarcivrorrcivrandmanagrofthusinssoranothrprson;or
)hisanofficialrcivrortrustwithinthmaningofthbankruptcyAct1966ofthCommonwalthoranyActinamndmntorsustitutionofthatAct.
RealestatetransactionMans:
a)asal,xchang,orothrdisposalandapurchas,xchang,orothracquisitionofralstatandanyxclusivrightwhthrdrivingfromthownrshipofasharorintrstinaodycorporatorpartnrship,orothrwis,tothusoforoccupationofralstatincludingthlasing,and
ltting,andthacquisitionundrlasorlttingoftnancyoroccupationofralstat:and
)includsanysal,xchang,orothrdisposalandanypurchas,xchang,orothracquisitionofgoods,chattlsorothrproprtyrlatingtoaralstattransactionofakindspcifidin
paragraph(a);andc)includsthcollctionofrntsorothrpaymntsforusofoccupation;and
d)alsoincludsanoptiontontraralstattransaction.
TC
Dnotstrinnialcrtificat.Usdintitlsoftrustaccountsfollowdythcrtificatnumrofthagnt.
TransactionAralstattransactionorausinsstransaction.
Triennialcertificate
AcrtificatgrantdundrthActtoalicnstocarryonausinssasagnt.
Trustaccount
Accountswhrmonyisrcivdorhldyanagntoranymmrof
anagncysstaffonhalfofanothrprsoninrlationtoaralstatorusinsssalstransactionorproprtymanagmnttransaction.
Workingday
AdaythatisnotaSaturday,Sundayorpulicholiday.
Year
Apriodof12monthsndingon31
Dcmr.
GLOSSARY continued
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Auditor4,5,,8,10,11,16,18,23,28,29,30,31,32,34,35,38
balancing23,36
bankchargs4,21
bankfs4,21
banking/ankd11,16,18,36,3
banks3,4,14,16,1,22,23,25,26,36,3
bondAdministrator3,6
buildingsocitis3,14
buffrfunds21
Cashpaymnts18,23,24,25,3
Cashrcipts14,18,23,24,25
Changofauditor30
Chqupaymnts3
Commission(Includsfs)8,9,11,21,22,23,38
Computrsystms10,13,15,35,36,3
Conflictofintrst28
Corporationslaw28
Crditunions3
DpartmntofConsumrandemploymntProtction(DOCeP)3,4,33
DOCeP(sthDpartmntofConsumrandemploymntProtction)
Fs(sCommission)
Fraud1,9,16,21,34,35,38
Gnralaccountant28
Gnralaccounts21,38
Gnraltrustaccounts3,4,5,,14
Intrst3,4
Intrstaringtrustaccounts4,5,,29
Intrimrcipts15
Journal,11,14,18,20,21,22,23,24,25,2,35,36
Licnsdagnt2,9,14
Managmntlttr30
Misappropriation34,38
Prsoninbona fidecontrol10,1,21,22,23,34,35,36,3
Rcipts4,6,,12,13,14,15,16,1,18,20,22,23,24,25,2,29,35,36,3,38
Rciptooks,35,36
INDEX
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Rciptjournal24
Rconciliations,18,23,24,25,2,34,35,36
Rgistrofscuritis,12
RsidntialTnancisAct1983,4,6,14,15,33
RsidntialTnancisRgulations198915,33
Statutorydclaration28,29
Stratamanagmnt2,3,4
TC(sTrinnialcrtificatnumr)
Tnancyonds2,3,4,6,,14,15,19,29
Tnancyondtrustaccounts3,4,6,,29
Trminationaudit31,32
Thft1,9,16,1,22,34,35,36,3,38
Titlingoftrustaccounts5
Transfrjournals35,36
Trinnialcrtificat2,3,5,6,9,13,28,31
Trinnialcrtificatnumr5,6
Trustdpositforms15
Trustldgr,15,1,18,19,21,22,2,35,36
Trustmony2,3,6,,8,11,18,19,22,2,28,32
Trustrcipts,13,14,15
Unclaimdtrustmony32
Varialoutgoings2
Varialoutgoingtrustaccounts3,4
INDEX continued
-
7/30/2019 Real Estate Accounting
47/47
Real Estate and Settlement Advice Line 1300 30 40 64
(for the cost of a local call statewide)
8.30am - 5.00pm weekdays
Forrest Centre
219 St Georges Terrace, Perth
Western Australia 6000
Administration: 9282 0843 Facsimile: 9282 0861
Locked Bag 14, Cloisters Square WA 6850
Translating and Interpreting Service: 131 450 and
ask for a connection to 1300 30 40 64
Website: www.reba.wa.gov.au
Email: [email protected]
Regional ofces:
Great Southern 9842 8366
South-West 9722 2888
Mid-West 9964 5644
This publication was issued by the Real Estate
and Business Agents Supervisory Board
15734/Dec05/