Trust account

Discussion in 'Property Information Resources & Tools' started by Baileyrose, 4th Mar, 2020.

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  1. Baileyrose

    Baileyrose Member

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    Hi
    Looking for some advice.
    If my agency is based on advertising and market research, do I need to operated a trust account.
    Owners do their own open house and I don't hold any deposits. No Commission.
    Thanks in advance
     
    Baileyrose, 4th Mar, 2020
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Do you receive money from tenants or buyers? If no (as in the landlord or seller gets money directly), then you don’t.
     
    D.T., 4th Mar, 2020
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    If you are running a business of marketing/research & you not acting as an agent, not taking buyers' deposits, then you wouldn't need a statutory trust account. Money expended on marketing goes to the agent's business account not the trust account, the vendor is snow unsecured creditor.

    No different to other business transactions not a real estate transaction
     
    Scott No Mates, 4th Mar, 2020
    #3
  4. Baileyrose

    Baileyrose Member

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    Hi only money received will be for consulting,advertisingcosts and market research. Iam advising on using a conveyancer for legal advice and handling deposits and other legal costs
     
    Baileyrose, 4th Mar, 2020
    #4
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    You will need to ensure that the solicitor or conveyancer are the deposit holder on the contract of sale.
     
    Scott No Mates, 4th Mar, 2020
    #5
  6. Propertunity

    Propertunity Well-Known Member

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    Really? I hope you have PI insurance.
     
    Propertunity, 5th Mar, 2020
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Nah! Why bother? it's only a requirement if you operate a trust fund.
     
    Last edited: 5th Mar, 2020
    Scott No Mates, 5th Mar, 2020
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  8. Propertunity

    Propertunity Well-Known Member

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    Please tell @Baileyrose you are being sarcastic.....
     
    Propertunity, 5th Mar, 2020
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  9. Baileyrose

    Baileyrose Member

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    Thankyou for all your advice. I want to make sure I get everything right before I venture into this. What determines if it's a real estate agency or a marketing consulting agency. Where the line?
    I could open a real estate agency as Iam fully licensed but I wanted to save on up front costs and help people sell their own homes.
     
    Baileyrose, 5th Mar, 2020
    #9
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Talk to one of the licensing bods at Office of Fair Trading, they're usually up with all of the requirements.
     
    Scott No Mates, 5th Mar, 2020
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  11. Propertunity

    Propertunity Well-Known Member

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    Yes, either that or the SA real estate institute - REISA
     
    Propertunity, 5th Mar, 2020
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  12. balwoges

    balwoges Well-Known Member

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    Sounds messy to me ... :(
     
    balwoges, 5th Mar, 2020
    #12
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    Assuming its in SA (says Adelaide Hills on profile?) , then the equivalent is Consumer and Business Services, they deal with all occupational licensing.
     
    D.T., 5th Mar, 2020
    #13
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