» Different Types of Trust Accounts in Real Estate

Different Types of Trust Accounts in Real Estate

Managing money in real estate is a big responsibility. Buyers, sellers, landlords, and tenants all have funds at stake—and that’s where trust accounts come in.

These accounts keep client money safe, organised, and separate from an agency’s own funds. Real estate agents across Australia must follow strict rules on how trust accounts are set up, used, and reported.

But here’s the catch—there’s more than one type. Knowing the difference is key to staying compliant (and out of trouble). Let’s break them down in simple terms—no legal jargon here.

Types of Trust Accounts in Real Estate

Now, let’s get to the heart of it: the types of trust accounts you’ll find in real estate.

There are two main trust accounts in real estate:

1. General Trust Accounts

This is the most common type. Think of it as a shared holding area.

Real estate agents use a general trust account to hold funds from multiple clients. That might include:

Rental bonds
Holding deposits for sales
Rent payments
Strata fees
Commercial leasing deposits

The money sits in one account, but the agency must keep records showing who owns what.

Important to note: any interest earned on this account usually doesn’t go to the agent or the client. It’s typically paid to a government-managed fund that supports industry regulation or consumer protection (varies by state).

2. Interest-Bearing Trust Accounts (Section 68A Accounts)

These are a bit more specific—and not always used.

An interest-bearing trust account is opened for just one person or transaction. The key difference? The interest earned goes to the person who deposited the money, not the government. But agents can’t just open these accounts anytime. They need:

A written request from the client (before settlement), and

Either:

The amount deposited is over $20,000, or
Settlement is more than 60 days away

This is covered under Section 68A of the Property and Stock Agents Act (NSW) and similar regulations in other states.

Also, if a client wants one of these accounts, they should give the bank their tax file number—otherwise, tax might be withheld at the top marginal rate. Ouch.

Do All States Have the Same Rules?

Not quite. While the idea is the same across Australia, each state and territory has its own legislation and trust account rules.

Here’s a quick snapshot:

State/Territory	Governing Law	Trust Account Oversight
NSW	Property and Stock Agents Act 2002	NSW Fair Trading
VIC	Estate Agents Act 1980	Consumer Affairs Victoria
QLD	Agents Financial Administration Act 2014	Office of Fair Trading
WA	Real Estate and Business Agents Act 1978	DMIRS
SA	Land Agents Act 1994	Consumer and Business Services
TAS	Property Agents and Land Transactions Act 2016	Property Agents Board
ACT	Agents Act 2003	Access Canberra
NT	Agents Licensing Act 1979	NT Consumer Affairs