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Interest Bearing Real Estate Trust Account Agreement

Detailed information about fiduciary accounts can be found in the Brokerage Standards Manual or directly in the Real Estate Services Act. If you have any questions about creating a trust account, please contact Christian Hansen by email or phone (604-343-2627). Consolidated trust accounts used as debit accounts are subject to Section 29 of the Real Estate Services Act and a financial institution must be responsible for paying all interest on the debit account to the Real Estate Foundation bc. In order for these funds to be not subject to Section 29, a brokerage firm must close a separate security escurgating account and make purchases of pets. When domestic security and insignia are deposited into the real estate agent`s global receiver account (an account containing any other type of deposit outside the pet guarantee and insensions), these funds are then required to transfer interest to the BC Real Estate Foundation. We strongly recommend to brokers who hold money for security and insensitivity to ensure that these funds are not held in the general receiver account of brokers. The Real Estate Services Act is the legislation that governs real estate agents, the real estate foundation and much more. The Real Estate Services Act was passed in 2005 and replaced the Real Estate Act and parts of the Real Estate Development Act. Pet warranties and applications under the Residential Tenancy Act, for which the broker must pay a regulated interest rate, are not subject to Section 29 of the Real Estate Services Act. A pooled fiduciary account can be used by a broker for electronic deposits and/or payments. Although the Commission`s Regulations require brokers to have separate fiduciary accounts for each company posted, consolidated fiduciary accounts are authorized for electronic collection of postage and payment of invoices on behalf of strata companies. These bundled trust accounts are called Flow Through accounts. The Foundation has indemnity agreements with all major financial institutions in British Columbia.

These agreements include the calculation and payment of interest on the consolidated trust accounts, as well as service and transaction fees deducted before payment to the Foundation. The form authorizes your financial institution to pay interest to the Foundation in accordance with the current compensation agreement (see below). REFBC is not responsible for bank charges for which transaction fees exceed accrued interest, or other expenses such as certified cheques, preparation of the statement of account or confirmation of examination. This page contains an authorisation form for brokers, an overview of the legislation governing the Foundation and guidance on compensation agreements and specific enforcement cases. Prior to the creation of the real estate foundation in 1985, all interest from the brokers` trust accounts was paid to financial institutions. All service charges paid on these fiduciary accounts were borne by the brokers. Because of the brokers` position as agents of these funds, they were prohibited from earning interest on their trust accounts. It was essentially lost money. Forms filled out by e-mail at info@refbc.com or fax at 604-688-3669. Note: If you are a member of a credit union, you must use another form available through your agency. Brokerages must complete and submit a copy of the REFBC authorization form if: The Bc Law Foundation and the Notary of BC Foundation have similar funding mechanisms.