All funds held or received from, for or on behalf of a principal, and all money held or received on account of remuneration in relation to real estate services are trust funds.
Section 27 of RESA requires the prompt payment of all trust funds into a brokerage trust account.
Brokerages should be aware that funds received in advance from a principal for marketing and other expenses are trust funds.
Section 28 of RESA establishes that money held or received by a brokerage in respect of a trade in real estate for which there is an agreement between the parties for the acquisition or disposition of real estate is held by the brokerage as a stakeholder, unless otherwise agreed to in writing by the parties. The stakeholder provisions do not apply to rents or payments under an option to purchase, or security or other damage deposits paid by a tenant under the Residential Tenancy Act — will open in a new tab.