Real estate and business agents' trust account handbook
All real estate agents and real estate business agents who hold or receive money on behalf of others relating to a real estate transaction in Western Australia are required to open and maintain trust accounts. The Real Estate and Business Agents Act 1978 (the Act) and the Real Estate and Business Agents (General) Regulations 1979 (the Regulations) require the strict maintenance of a formal set of trust account records that show at any time the state of a real estate agent’s trust account. Section 70 of the Act requires persons who carry on business as a real estate agent to have their trust accounts audited according to the requirements determined by the Commissioner for Consumer Protection and in accordance with accepted auditing practice.
This publication is not a comprehensive accounting text for agents. Familiarity with the content of this publication does not satisfy the requirement that agents have a sound working knowledge of the Act, the Regulations and the Real Estate and Business Agents and Sales Representatives Code of Conduct 2016 (the Code).
It is the view of the Department of Mines, Industry Regulation and Safety (the Department) that section 87 of the Act can be interpreted as meaning that, if the trading body corporate or firm has failed to comply with the requirements of Part VI of the Act, then the directors/partners and/or person in bona fide control of the trading entity have also failed to comply with Part VI of the Act.
Reference material and the latest Department requirements can be found on its website. Visit: Real estate agents and sales representatives
Real Estate Industry bulletins are used to inform industry about policy and best practice, and may be used to convey information about the Commissioner’s auditing requirements. Archived issues of the bulletin are also available.
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