What is a trust account?
Posted on Dec 01 2015, in Resources for buyers
A trust account is a bank account that an authorised individual opens in the name of his company or organisation in order to receive funds and hold it on behalf of the person depositing such funds.
With an estate agency, all funds in its trust account are protected under the Estate Agency Affairs Board Act. This basically stipulates that the funds in the account are not the ownership of the agency nor any agent or the seller until such time as it is due and payable. This means that any interest received on funds in a trust account will accrue to the purchaser – individual making the deposit.
An estate agency must have a valid Fidelity Fund Certificate issued by the Estate Board in order to operate a trust account.