Questions in this section Status Action 1 1. Define what sales trust and management trust account monies are and provide two examples.

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2 2. What certification is required to handle trust funds?

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3 3. What are some of the penalties that apply to those who mishandle trust funds?

new 4 4. List two reasons how mishandling trust funds can impact consumer relationships. new 5 5. What forms of payment are acceptable to made to an authorised person/s or trust account?

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6 6. When a tenant pays by direct deposit, do they need to be provided with a receipt?

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7 7. Define "books of prime entry" and give one example.

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8 8. Define "books of secondary entry" and give one example.

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9 9. Where should the words 'Trust Account' appear?

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10 10. According to legislation and organisational policy and procedures, when should banking be processed?

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11 11. When a licensee draws a cheque from a trust account to process either an expense, deduction, fee, or commission, what process needs to be followed and what records need to be kept?

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12 12. List three documents that need to be regularly reviewed to ensure compliance with legislative requirements in the state or territory of operation and to maintain security of trust account records.

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13 13. If a trust account is overdrawn how is this handled and who must be notified?

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14 14. How often must trust accounts be balanced and reconciled?

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15 15. How long must trust records be held and where should they be stored?

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16 16. Who is authorised to inspect the trust records, if required?

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17 17. How often should a back-up of computer records be made and where should they be kept?

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18 18. When is the external audit deadline for all trust accounts and how are they lodged? How often should agencies conduct internal audits?

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19 19. What are the requirements of the legal regulatory framework for the handling of real estate trust accounts in the state or territory of operation?

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20 20. Who can authorise a withdrawal, disbursement, or payment from a trust account?

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21 21. What are the penalties that apply for licensees who do not follow their legal obligation to ensure proper supervision of their business?

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22 22. Outline the consequences for the agency and their brand should breaches of trust account practices or fraudulent activities occur?

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23 23. What is the requirement for lodging unclaimed trust monies under your state legislation? What is the process in your state for this?

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24 24. Define the term disbursement and provide three examples of types of disbursements that are processed on accounts.

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25 25. What are the personal obligations, responsibilities, and legislative requirements of the agency Principal regarding trust accounts?

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26 26. What procedure should be followed when a cheque is dishonoured?

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27 27. As the agency principal you have received several complaints from different landlords that tenants are in arrears. The landlords have advised they did not receive the due rent. Tenants have also complained they have received arrears letters even though they have paid their rent. The property manager has given a variety of reasons why some tenants may not have paid but cannot explain why this is happening for others. As the principal what would you do to investigate and correct the error?

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28 28. You have received a bank statement for the Management Trust Account which shows a debit of $15.00 for a dishonoured rent cheque.

What is the procedure for dealing with this? new 29 29. Mr Smith has complained that he received an arrears letter. You discover that Mr Leslie Smith's direct deposit rent payments have been incorrectly credited to Ms Leanne Smith's ledger several times. Upon correction, Ms Leanne Smith's