Trust account

Discussion in 'The Buying & Selling Process' started by ATANG, 8th Jan, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    615
    Location:
    SA
    Does anyone know if trust account held by the agent incur any interests? If so, do the vendor get the interest?
     
    ATANG, 8th Jan, 2019
    #1
  2. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Trust accounts do not earn interest.

    If you want to earn interest then have a special condition written into the contract where your deposit is to be invested in the names of the vendor and the purchaser and the interest earned split 50-50 on settlement.
     
    Propertunity, 8th Jan, 2019
    #2
    Terry_w likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,247
    Location:
    Sydney or NSW or Australia
    In today's low interest environment, how much interest will you forgo in the 30 odd days between full payment of the deposit and settlement?

    Say $100k for 30 days @2.5% pa equates to $205.

    Both parties need to provide Tax File Numbers to open the account.

    It's really gonna make a big difference.
     
    Scott No Mates, 8th Jan, 2019
    #3