New South Wales Consolidated Acts
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CONVEYANCERS LICENSING ACT 2003 - SECT 53
Payment of trust money into trust account
(1) Money received for or on behalf of any person by a licensee in connection
with the licensee's conveyancing business:
(a) is to be held by the licensee
or (if the licensee is employed by a corporation) by the corporation,
exclusively for that person, and
(b) is to be paid to the person or disbursed
as the person directs, and
(c) until so paid or disbursed, is to be paid into
and retained in a trust account (whether general or separate) at an authorised
deposit-taking institution in New South Wales and approved by the Secretary
for the purposes of this Part.
(2) If the licence is held by a corporation,
the trust account is to be in the name of the corporation and in any other
case is to be in the name of the licensee or of the firm of licensees of which
the licensee is a member.
(3) Subsection (1) does not prevent a licensee
(a) withdrawing or receiving, from trust money, money due to the
licensee for costs so long as the procedure prescribed by the regulations is
(b) holding, or disposing of, a cheque or other negotiable
instrument payable to a third party if the licensee does so on behalf of a
client and in accordance with directions given by the client, and
exercising a general retaining lien for unpaid costs and disbursements in
respect of money in a trust account (other than money received subject to an
express direction by the client with respect to the purposes for which the
money is to be applied).
(4) A lien referred to in subsection (3) (c):
may not be exercised for an amount in excess of the sum of the costs and
disbursements unpaid, and
(b) may not be exercised unless:
(i) the licensee
has disclosed to the client, in accordance with Division 5 of Part 3, the
basis of the costs for the conveyancing work concerned, or
(ii) if such a
disclosure is not required to be made (as provided by sections 39 and 40 and
any relevant regulations)--the licensee has served a bill of costs on the
(5) The name of a trust account and the description of the
trust account in the books and records of the licensee and also on all cheques
drawn on the trust account:
(a) must include the name of the licensee
corporation, licensee or firm of licensees in whose name the trust account is
(b) must include the words "Trust Account", and
(c) may include, at the end
of the account's name, a name or other matter to identify the person on whose
behalf money in the account is held.
(6) When opening a trust account at an
authorised deposit-taking institution for the purpose of complying with this
section, the licensee concerned must ensure that the authorised deposit-taking
institution is notified in writing that the account is a trust account
required by this Act.
(7) A licensee must, within 14 days after closing a
trust account, notify the Secretary in writing of the closure.
penalty: 100 penalty units.
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