Trust accounting by computer or manual operation must be carried out in accordance with Part VI of the Real Estate and Business Agents Act 1978 - Agents' Trust Accounts.
Trust accounts under Section 67 of the Act are defined as 'accounts relating to moneys received or held by an agent for or on behalf of any other person in respect of transactions'.
Section 68A of the Act states that 'A person may request that moneys paid by that person to an agent in respect of a transaction be deposited to the credit of a separate interest bearing trust account maintained in accordance with Section 68'.
Requests for separate interest bearing deposits 'shall be in writing' and an agent shall comply with a request so long as it meets the following requirements as regulated
|•||Only when the deposit exceeds $20,000 or|
|•||The transaction will not be settled within 60 days.|
It is the duty of every agent to have each approved trust account audited by a qualified auditor, in accordance with auditing practices, each year. Duties of an agent with respect to audit under Section 77 are to produce to the auditor his/her books and all papers, accounts, documents and securities in his/her possession for examination by the auditor.
Trust accounting records must always be kept up to date and properly recorded/written up in such a way as to disclose every transaction in such a manner that it will allow the agent to make a statement, certified under his hand, to the auditor, with details that show moneys held on the last day of the period to which the audit relates.
To comply with the Act the computerised system contemplated must be able to produce 'hard copy' records of every transaction entered into between the agent and the client, as well as record external interest bearing deposits made under the Regulations.
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