What is the name of the relevant legislation

Answer the questions below:

Question 1

What is the name of the relevant legislation (including sections if applicable) in your state/territory that outlines the requirements for operating a real estate trust account?

Question 2

List 5 examples of transactions that would NOT be entered into a trust account accounting system. (e.g. payment of wages to office staff).

Question 3

Complete the following table.

Give (2) reasons that inaccuracies/discrepancies can occur in trust accounts and a treatment to address these.

Source of Discrepancy	Treatment Strategy to Address the Discrepancy
E.g. Dishonoured cheque	Ensure that a reversal is completed in the cashbook Do not accept cheques as method of payment

Question 4

List (4) transactions you are likely to be handling on behalf of your clients / Principals and group the transactions according to whether they are a receipt or a payment.

Receipts	Payments
e.g. Rent	e.g. Rent Settlement

Question 5

What is the purpose of trust accounts in real estate?

Question 6

What are the requirements under the legislation in relation to being able to operate a real estate trust account?

Question 7

What is the difference between a trust account and a general account?

Question 8

Explain the roles and responsibilities of the following real estate personnel regarding trust account activities.

Trust Account Activity	Personnel Responsible
Receipting rent from tenant
End of month disbursement of funds to the landlord
Receipting deposit from purchaser
Problem with trust account
Issue cheque for balance deposit at settlement

Question 9

Refer to the relevant legislation and outline the responsibilities of the licensee relating to account transactions and audits.  Refer to the correct section of legislation as part of your answer.

Question 10

Read the following case and explain the impacts of trust inaccuracies on clients and agency.

The OFT received a complaint in March 2018 alleging irregularities in the agency’s corporate trust account. The OFT undertook a compliance check at the agency’s business address in March 2018, which revealed the agency’s then Principal Licensee had withdrawn a total of $121,000 on eleven separate occasions without authorisation.
The then Principal Licensee of the agency cooperated with the OFT and admitted the funds transferred from the trust account were never intended for personal gain, but were used as a ‘short term loan’ to cover business expenses until money could be returned to the trust account.
The agency’s clients suffered no loss as a result of the trust account misappropriation.

In sentencing, the court stated the offending was of a very serious matter, but considered a number of mitigating circumstances including an early guilty plea, the cooperation with the OFT and no loss experienced by consumers.

Question 11

Outline the monthly trust accounting processes required to be undertaken by the real estate agency (including the applicable timeframes) in line with legislation requirements in your state or territory.

Question 12

List the name(s) and explain the different types trust account(s) that can be used in real estate in your state/territory?

Question 13

What processes need to be implemented and authorities notified of discrepancies in trust accounting?

Question 14

What security arrangements need to be in place for trust accounts?

Question 15

What are (3) examples of trust records?

Question 16

What are the requirements under the legislation relating to the electronic/computer based accounting systems.  As part of your answer identify the section of the legislation and the specific requirements.  Any information direction for the legislation can be copy and pasted as part of your answer.

Question 17

In 25-100 words, explain what role will you be going into and what are the legislative requirements/limitation regarding your involvement in trust account activities.

Question 18

What are the legislative requirements pertaining to;
a)Issuing receipts
b)Banking of trust money.

Question 19

What is the name of a software package that can be utilised for trust accounting and what is its function/purpose?

Question 20

In 50-100 words explain the reason behind conducting internal and external trust account audits.

Question 21

What are at least (2) methods in which trust moneys can be provided/deposited into the trust account?

Question 22

What are the (2) ways that trust monies can be disbursed out of the trust account?

Question 23

a)Explain in 50-100 words what is a Cashbook Receipts Journal.
b)In the table below write (2) examples of standard transactions into the cashbook receipts journal that you would expect to see in your day to day real estate activity.

Date money received	Date Receipt Issued	Name of person (Payee)	Code or client	Description of the matter	Amount received	Account Receipt Number	Date Banked
02/08/2013	02/08/2013	Ted Johnson	Ted Johnson	Advertising payment – 2 Second St, Byron Bay	$ 350.00	1206	02/0/2013

Question 24

a)Explain in 50-100 words what is a Cashbook Payments Journal.

b)In the table below write (2) examples of standard transactions into the cashbook payments journal that you would expect to see in your day to day real estate activity.

Date Payment made	Amount	Cheque number or EFT number	Payment made to	Identifier or name of payer	Description of matter	Ledger identifier debited
	paid
28/04/2013	$1900.00	1434	Aircold Airconditioning	John Jones	Airconditioning Repair at 47 Robert St, Byron Bay	JJ47

Question 25

a)Explain in 25-50 words what are trust account ledgers.

b)What are the standard trust account transactions you would expect to see in a ledger in your day to day real estate activity?

Question 26

In 25-100 words explain what is a trust account;

a)Trial balance
b)bank reconciliation

Question 27

Provide (1) example for each of the following which is generated using standard trust account transactions in day to day real estate operations and outline the types of information these contain.

a)Report
b)Statement

Question 28

What are source documents?

Question 29

What is a transfer journal and give 1 example of its use?

The post What is the name of the relevant legislation appeared first on Scholar Writers.