1.

According to commerce of Western Australia sales trust account is a specified bank account
which is to help to receive the money including members of organization and staff and the
money has been received on the behalf of another person connected with real estate transaction
and business settlement. Management trust account is an efficient financial account that holds an
organizational fund for beneficial perspective. Real estate business brokers have become
essential for State law in order to maintain these management trust accounts for keeping funds of
clients separated from organizational and personal funding. For example sale trust accounts can
include residential bonds and rent; management trust account money can be defined by an
example of if parents of children can open a savings bank account regarding the beneficial
perspective of their children and maintain rules to access the fund and assets.
2. Certification of trustees can be discussed as holders of determining trust having proper power
for moving assets within a certified trust. Certification has helped trustees in order to sell assets
to other third parties. Sites that certificate application of trustee have included identification of
trust person for moving and selling property, creation of trust for waiting any types of changes
and explanation of revoking person.
3. According to the estate agents act, section 12 has employed a maximum penalty of 500 units
for individuals and 1000 units for cooperation. Moreover, 16.2 and 29 section has implied that
there will be 500 penalty minutes as well as cancellation of license and temporary
disqualification of the organization. Besides that due to bridges of obligation there will be 128
units and the broker should pay the trust money to the instructions and if it should not be kept
separated from the current trust and financial institution there will be a penalty of 25 units.
4. It can be stated that mishandling trust funds can impact consumer relationships as trust funds
of real estate agencies are holding the fund from clients and customers. Real estate agencies are
responsible to keep our clients' funding secure by managing strict procedures outlined through
agent registration. Moreover the trust money should be kept separated from the operational
account as this should be utilized for making payment to the debtors. Formatting a good
reputation it is essential to to security handle the important assets and relationship with all
stakeholders.
5. Residential, commercial and sales deposit types of transaction are acceptable to make to an
authorized person for a trust account.
6. It can be stated that when a tenant pays by direct deposit they should be provided a receipt of
the payment it is going with the demand of the person and by whom it has been received.
7. Book of prime entry is a record book which has included all types of transactions before
becoming a segment of double entry book and this record of transaction should be kept separated
from ledger account. An example of a book of prime entry is the cash book of a tenant.
8. Entry is another accounting book for secondary entrance as a transaction in the ledger account
has been recorded after execution of journal entries. Example of a book of secondary entry is a
sales return book.
9. The word trust account has appeared under the consequence of property and stock and agents
act 2002. Trust account has included essential records such as Bank check disbursements
journals ledger balances and Bank reconciliation.
10.
11. When a licensee draws a cheque from a trust account to process and expenses deduction FY
aur commission you should follow civil procedure and make a proper record for further
utilization. The person should record the machine number, the payments should be marked as not
negotiable and payable to cash a similar. The payment should contain the name of the real estate
organization agent for utilizing the trust account and signed by the estate agent. The payment
should be followed by serial number of cheque, date of batches of cheques from financial
institution, name of employees return of paid cheque.
12. Internal control report, formal data security policies and documentation proving SOX
compliance is essential to be regularly reviewed to ensure compliance with legislative
requirements in the state or theory of operation and maintenance security of trust account
records.
13. Trustee recipients control if the trust account is overdrawn and he should be notified for
keeping legal control of assets in the trust account. The notification should be provided to the
trustee regarding the date of the trust account overdrawn, amount in the trust account and details
of taken action.
14. According to law practice the maintenance of reconciling trust accounts should be done for
the records of trust accounts. Statement of reconciliation should be prepared within 15 working
days at the end of concerning month.
15. The agent of the trust account receives the money on the behalf of another person and should
keep a written record of the received amount from the Bank. Besides that, all relevant records of
the trust account and documents should be returned for a minimum of 6 years from the receiving
date of money from the trust account.
16. Considering the auditors for inspecting trust records it is essential to qualify the section of
115 from property and stock agents act 2002. The basic requirements in order to become
authorized for inspection of trust records are needed to obtain registered audit companies,
authorized company auditors and members of professional bodies by holding public certificates
from public practice auditing.
17. It is essential to conduct backup of computer records once in every 24 hours for ensuring
information security and the copies of backup files should be secured in an external hard disk
under a separated folder in the computer.
18. The deadline of external audit for all trust accounts is 13th September or or within three
months of any particular order period. Internal audit should be conducted at least one in a year
and cover all the internal activities which are relevant to the organizational management system.
External and internal auditing procedure history changes have been undertaken for development
of the organization.
19.
20. Money from a trust account can be withdrawn with the help of direction provided by the
trustee. The trust money can be withdrawn by electronic fund transfer method and checked under
the legislation by paying a legal cost of 65 to governance.
21. Considering the contract and legislation of real estate, the penalties should be applied based
on section 55 there is a penalty of $37200 and two years of imprisonment.
22. Based on criminal bridging and fraudulent activities in the trust account there will be a fine
for 3 years of imprisonment. If the criminal which of the trust account has occurred by broker
Bank aurora public servant there will be a life imprisonment for 10 years imprisonment with a
high amount of fine.
23. The requirements are to follow preparation of unclaimed money statements under 62.1 of
licensing act 2003. Additionally after holding unclaimed money by licenses, a trust account in
the first month of the year can be received more than 2 years after preparation of unclaimed
money statement. The unclaimed money has become 2 years and one day old, the organization
will forwarded the unclaimed amount of money to the office of state revenue and other
correspondence for finding the owner of unclaimed money.
24. Disbursement can be stated as the payment of funds of debit through manual for electronic
methods. Amount of disbursement can be paid in manual method through cheque or from the
bank.
25. The agency principle should take the responsibility of contractual duties and his
responsibilities include compensating agents and identifying the production of agents against
particular claims, liabilities and incurred expenses. The agent should take the responsibility to
pay his principal amount of money to his account and he has the right to retain the amount of
money to his personal account for conducting agency business.
26. If the cheque has been dishonored, the dry bank should raise issues in the cheque returning
memo issue to the bankers of payment Bank by mentioning the particular reason for not
completing the issued payment. The paper bankers should provide the dishonored cheque and
memo to the payee person.
27. For resolving the principal agent problem, it is essential to craft the incentives for their agents
and the incentives should be aligned with principles and rewarded for impacting on human
behavior. Agency principals should play the role of resolving conflicts by prioritizing control of
assets and making changes in contractual clauses.
28. For handling dishonored cheques, it should be kept in mind the insufficiency of cleared funds
in the account. Considering dishonored cheques of 15 dollar rashtriya should follow name and
business address of license, name and the number of trust account, out of dishonored and the date
of dishonor of cheque.
29. Ms Leanne Smith should inform and notify financial institutions and the Bank of accidental
deposits from any other person in her amount. Bank will enormously deposit the amount to Mr
Leslie Smith account.
30.

Date Description PR Amount Date Description PR Amount

1st day 1st day

of Negotiate of Initial
month sale 101 1000000 month deposit 102 2500
8th Payment
day of under
month negotiation 103 50000

4th of
next settlement
month payment 104 100000

6th of
next Order on
month agent 105 22000

174500