When it comes to trust accounting, it can be difficult to ascertain the difference between real estate and strata trust accounting. To be fair, there is little distinguishing the two apart. This article aims to provide a brief look at their key characteristics to avoid the confusion of trying to ‘spot the difference’.
Real Estate Trust Accounts
- For real estate trust accounts, the account name is in the name of the Corporation license and contains the words, ‘trust account’.
- Each trust account is registered and has a UID number from Fair Trading.
- The account is subject to mandatory audits.
- Reconciliations must occur within set strict time frames; normally monthly.
- The account is held in the name of the Body Corporate or Owners Corporation and is managed by the agency and does not contain the words ‘trust account’.
- There is no monthly reconciliation requirement.
- Levies are typically sent on a quarterly basis to lot owners.
- Receipting occurs on a quarterly basis.
- The account is subject to mandatory audits where there are more than 100 lots or the annual budget is above $250,000.
- The agency may need to complete an audit on overall trust accounting practices.
- Accounts do not require a UID registration.
If you require further assistance with respect to trust accounting or auditing of strata accounts, you are welcome to contact our team of experienced accountants and auditors by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange conference or appointment.