Scope

Updated: 27 Apr 2020

Range of services

The scheme covers the following categories under relevant legislation:

  • accounts examiner
  • manager
  • receiver.

Initially the scheme will seek prequalification of service providers for appointments under the Property Stock and Business Agents Act 2002 (PSBA Act) and the Conveyancers Licensing Act 2003 (CL Act).

Scheme categories

Accounts examiner

An appropriately qualified appointee appointed under Part 10, Division 4 of the PSBA Act.

For the purposes of safeguarding the Property Services Compensation Fund in relation to the affairs of a licensee:

  • conduct a preliminary review of the accounts (trust and operating accounts) of the licensee’s business
  • conduct a reconciliation of the trust accounts
  • compare available records of the licensee with the records of the financial institution used by the licensee
  • no reconstruction of books/records is required to be undertaken.
  • prepare a confidential report within 20 business days of examining the accounts of the licensee’s business indicating whether there is any irregularity or alleged or suspected irregularity in the accounts, or any other matter that in the accounts examiner’s opinion should be further investigated.

Manager

An appropriately qualified person appointed under Part 8, Division 2 of the CL Act. There are 3 tiered categories for which managers can be appointed depending on the total of fees and costs expected.

All managers regardless of the tier category they are under need to undertake a preliminary assessment (20 business days):

  • take control, and supervise the conduct, of the licensee’s conveyancing business, including all employees and operational and trust accounts in accordance with the requirements of the CL Act
  • notify the principal of the employment of any disqualified person employed by the Licensee’s conveyancing business and terminate their employment
  • become sole signatory to operational and trust accounts
  • conduct a preliminary review of the trust accounts of the licensee’s conveyancing business (no reconstruction of books (forensic or otherwise) required to be undertaken)
  • conduct a reconciliation of the trust accounts of the licensee’s conveyancing business
  • notify the principal of any identified legislative or regulatory breaches.
  • prepare a preliminary assessment report within 20 business days of entering into management of the licensee’s conveyancing business to provide a summary analysis of the affairs of the licensee’s conveyancing business

Additional requirements of work to be undertaken relating to the specific tier category will be detailed in the appointment.

Receiver

An appropriately qualified appointee appointed by the NSW South Wales Supreme Court under s.138 of the PSBA Act or s.105 of the CL Act.

There are 3 tiered categories for which receivers can be appointed depending on the total of fees and costs expected.

Note: before undertaking this type of appointment pursuant to the scheme, the service provider must ensure it is capable of undertaking, and agree to undertake, the following actions at no cost to the principal:

  • appearing before the NSW Supreme Court
  • following the directions of the court
  • providing all required evidence/exhibits to the court
  • filing an affidavit and consent form in connection with the appointment with the court to the satisfaction of the court
  • seeking guidance from the court where required.

Where the receiver has not previously been appointed as the manager for the nominated licensee’s business regardless of the tier category all receivers must undertake a preliminary assessment (20 business days):

  • conduct a preliminary review of the accounts (trust and operating accounts) of the licensee’s business, and take an inventory of the assets of the licensee’s business
    • conduct a reconciliation of the trust accounts
    • compare available records of the licensee with the records of the financial institution used by the licensee
    • no reconstruction of books/records is required to be undertaken.
  • prepare a preliminary assessment report within 20 business days of examining the accounts of the licensee’s business to provide a summary analysis of those accounts.

Additional requirements of work to be undertaken relating to the specific tier category will be detailed in the appointment.