1) What is Trust Account?
Money received from real estate transactions must be deposited into a trust account by law.
Any money received in connection with a real estate transaction must be deposited in a designated trust account by every agency.
These trust accounts must be audited, and trust account auditors have specific responsibilities in accordance with Australian Standards on Assurance Engagements, in particular, ASAE 3000 and ASAE 3100.
2) Operating a Trust Account
You are allowed to use a third-party trust account
Money must be held for 10 working days
Every agency must keep trust account records
Trust accounts must be audited
You must pay out (including any interest) to the person entitled to it
You must provide a written summary of the money held
3) Trust Account Audit
Under the Act, the records of conveyancers' handling of trust money must be audited. A trust account audit should be performed in accordance with the Standard on Assurance Engagements 3100 (SAE 3100).
Auditors must be registered with the Australian Securities and Investments Commission (ASIC) or be qualified under section 79 of the Conveyancers Licensing Act 2003. The auditor is required to form an opinion on whether the agent has complied with the relevant acts and regulations, in all material respects. Results of trust account audits need to be lodged via the Auditors Report Online portal.
If the audit is not completed by the 30th of September of each year, licensees may be disqualified from holding a licence and may be barred from renewing a licence.
4) Why Graphite Business Advisors?
We are qualified estate agent trust account auditors and can provide independent assurance on the operation of your trust accounts. Our professional teams provide auditing service in a timely and effective manner allowing your agency to fully comply with Victorian, NSW and QLD regulations without unnecessary hindrance to your staff. Our experienced audit teams will:
Review your practices and procedures
Identify potential issues with your trust accounts
Provide you with the necessary assurance report
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