Making an impact with every transaction
The Real Estate Act states that all licensed brokers are required to maintain a general trust account to hold deposits on behalf of their client(s).
Section 25(1)(b) requires general trust accounts to be interest bearing and section 69(2) directs any interest earned on these trust accounts to be paid to the AREF.
We have compensation agreements with financial institutions concerning the calculation and payment of interest on these accounts. If interest has accrued during the quarter, transaction fees will be deducted before payment is made to us. AREF is not responsible for bank charges where the transaction fees exceed the interest accrued or for other fees such as certified cheques, statement preparation or audit confirmation.
Here’s how to notify your financial institution to direct the interest to AREF.
Review the instructions to financial institution from industry member form Instructions to Financial Institution from Industry Member.
Keep a copy of the remittance forms, acknowledged by the bank, for your records. We will monitor the remittances received from the bank to ensure we’re receiving the funds as directed.
Section 69(4) says you don’t have to remit interest to AREF where trust funds are deposited in a separate account for a client. In this case it must be noted on the contract at the time of signing.
If you have any questions about the remittance process, please contact us.