Question

Case study 13

Caroline is working as an agent's representative with SLS Real Estate. She lives in an apartment block in which there are a number of apartments managed by SLS Real Estate. Caroline has become friends with one of the tenants, Elena. One Friday as Caroline is heading to work, Elena asks her to take her rent money to save her a trip. Caroline takes the money but when she arrives at the office she has to deal with an emergency situation and forgets to hand the money over to Scott in Accounts. Over the weekend, Caroline remembers the money and realises that she has made a mistake. On Monday, she leaves the money on Scott's desk with a note. However, when Scott arrives he doesn't see the note and is unsure what

the money is for. As it is end of month, he doesn't have time to look into it, so he decides to deposit the money into the business account until he has time to sort it out.

a) Identify the relevant sections of the requirements that relate to the management of trust money.

b) Which sections have been breached in the case study above?

c) Is the principal agent responsible for Caroline's actions?

d) Discuss the ethical and conduct standards that Caroline has breached in the case study.