Sale of 15 Jefferey Road: Fund Disbursement Details

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Question:

Robert Commons Sale of 15 Jefferey Road, Camberwell VIC 3124 Sold to James Zhou and Bronwyn Zhou for $1,020,500.00 Contract exchanges on 11/01/2024 Settlement on 15/05/2024 Tax Invoice 15 May 2024 Money In $106,068.00 Money Out $16,264.00 You Received $89,804.00 Details for Account SAL00241 Money Out Money In $4,018.00 $4,018.00 $1,000.00 $100,000.00 Advertising * 15 Jeffery Road * Initial Deposit Balance of Deposit Part Bal of Deposit $1,050.00 Commission for 15 Jeffery Road, Camberwell * $12,246.00 Payment Withdrawal by EFT to sale Brightstone Law Practice Trust Account $89,804.00 [EFT Transfer to: Brightstone Law Practice Trust Account, (777000) - ***770] Balance remaining $0.00 Total Tax on income $365.27 Total Tax on attached expenses $365.28 Total Tax on agency fees $1,113.27 Would this amount be disbursed to the general business account or the trust account

Answer:

The amount of $89,804.00 that you received from the sale of 15 Jeffery Road would typically be disbursed to the general business account, as it represents the net proceeds from the sale after deducting expenses and commissions.

In real estate transactions, funds received from a sale are often held in a trust account until the settlement is complete. After settlement, the net amount (after all deductions) is transferred to the general business account for operational use.

In this case, since the withdrawal by EFT is made to the Brightstone Law Practice Trust Account, it indicates that the funds were initially held in trust and then disbursed to your general business account.

Always ensure to follow your firm's policies and legal requirements regarding the handling of trust funds