Is it possible to deposit compensation amounts in a trust account?

This question was raised at the OACIQ Annual General Meeting of May 13, 2015. The answer is yes.

Indeed, nothing prevents compensation amounts from being deposited in a trust account according to one of the two options described below.

However, regardless of the option selected, the OACIQ cannot decide on what would happen to compensation amounts if an agency goes bankrupt.

Option 1 - Deposit in a general trust account subject to the provisions of the Real Estate Brokerage Act

This is the general trust account that was the subject of a Declaration related to the opening of a general trust account form duly completed and sent to the OACIQ.

When compensation is deposited into the general trust account governed by the Real Estate Brokerage Act, sums are handled in the same way as deposits. The only difference is that no trust receipt has to be submitted since the depositor is the account holder. Entries in the register are made with a reference to the transaction number and all documents must be kept for verification.

The monthly trust account reconciliation and the generation of an annual report, i.e., the Trust transaction report, must take into account all activities (deposits and withdrawals) that took place during the period in question. 

When the agency chooses to deposit compensation amounts in the general trust account, it is possible to make the account management easier by compiling compensation information in a register separate from that of other collected amounts.

Option 2 - Deposit in a trust account other than the one governed by the Real Estate Brokerage Act

Nothing prevents an agency from opening a second trust account that would be used for depositing compensation amounts received pending payment to brokers and to those with a right to share, if any. 

The opening and management of a second trust account are not governed by the Real Estate Brokerage Act and its regulations. However, this trust account can be verified by the Organization, as well as all accounts of the agency. Therefore, the agency executive officer shall communicate the existence of a second trust account, if any, and shall allow us to examine it, especially during an inspection of the OACIQ Inspection Department.