Question: I can’t seem to find any information on how to set up the trust account at the bank. What should we be aware of?
I am a lot owner (block of 3) and we are looking at managing the strata ourselves.
I can’t seem to find any information on how to set up the trust account at the bank and what we should be aware of – requirements etc.
Answer: Generally speaking, the role of opening the trust account would be the Treasurer’s responsibility
Generally speaking, the role of opening the trust account would be the Treasurer’s responsibility – please see extract of the strata legislation below (emphasis added on 1b):
- General functions The functions of a treasurer of an owners corporation include the following:
- to receive, acknowledge, bank and account for any money paid to the owners corporation,
The rules for operating and maintaining the trust account for you being self-managed would be different from licenced managing agents as they have obligations under the Property Stock & Business Agents Act and regulations.
Bank account requirements can vary from bank to bank and branch to branch but they are usually very helpful in providing their specific requirements.
We recommend that you have 2 joint signatories (for additional protection and transparency) on the account and pass a resolution authorising such persons to be the signatories (one of whom should be the Treasurer) – the bank will likely want evidence of minutes of meeting in this regard. Alternatively, you could make contact with your preferred bank first and then once they list their requirements, you could prepare motions/resolutions/authorise signatories based on such list.
For the full question and our detailed response, visit the original publication at Look Up Strata.
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