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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationUnder section 12 of the Practice Regulation, which of the following does an estate agent holding client money have to do? (i) Issue a written receipt immediately and keep a copy for at least 3 years. (ii) Pay the money into a trust account with an authorised institution. (iii) Withdraw it only on the client's instructions, by cheque or electronic transfer. (iv) Pay interest earned on it to the EAA.
Answer: (i), (ii) and (iii) only. (i) True. An immediate written receipt is required and copies kept for at least 3 years. (ii) True. Client money goes into a trust account at an authorised institution. (iii) True. Withdrawals must follow the client's instructions, by cheque or electronic transfer. (iv) False. There is no requirement to pay interest to the EAA. Rule: Section 12 requires proper accounts of client money, immediate written receipts, use of a trust account at an authorised institution, withdrawals only on instructions, and release of deposits only in accordance with the agreement or the client's instructions. Source: Practice Regulation (Cap. 511C), section 12; as at Oct 2026
Inventing a duty to account to the EAA for interest.
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Start practising →An original question written to the published EAQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.