Handling Clients Money Flashcards
cWhat is a Client Money account?
An account in the name of an RICS-regulated firm, holding client money.
What types of Client Money Account are there?
- A discrete client money account (single client of the firm)
- A general client money account (more than one client of the firm)
What is a discrete client money account?
- A pooled account where client funds are held collectively.
- Used when a firm manages money for multiple clients in a single account.
- Must be clearly labelled as a client account and separate from the firm’s own funds.
What is a general client money account?
- A separate account opened in the name of an individual client.
- Used when a client requires their funds to be kept apart from other clients’ money.
- Often used for large sums, ongoing projects, or specific agreements requiring segregation.
What are the categories of money?
All money held or received in the course of practice can be categorised as either client money or office money.
What is Client Money?
Money of any currency that:
* an RICS-regulated firm holds for or receives on behalf of another person and;
* is not immediately due and payable on demand to the RICS-regulated firm for its own account
Are fees paid in advance for professional work considered to be client money?
No.
Unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents.
What are client ledgers?
Records of all payments and receipts relating to a client account.
What is meant by the term mixed monies?
Receipts that combine client money and office money in a single amount
What is office money?
Money belonging to the RICS regulated firm or its principals.
