A strata manager, David, manages funds held in a trust account for Strata Plan KAS1122 in Kamloops. Which of the following is NOT an acceptable practice for managing these trust funds under BC regulations?

Question: A strata manager, David, manages funds held in a trust account for Strata Plan KAS1122 in Kamloops. Which of the following is NOT an acceptable practice for managing these trust funds under BC regulations?

Answer options:

• Depositing the strata corporation's operating funds into an interest-bearing trust account. ✅ Using funds from one strata corporation's trust account to cover a temporary shortfall in another strata corporation's operating account.
• Ensuring all disbursements from the trust account are authorized by the strata council.
• Maintaining separate ledgers for each strata corporation's trust funds.

Correct answer: Using funds from one strata corporation's trust account to cover a temporary shortfall in another strata corporation's operating account.

Explanation: BCFSA Real Estate Services Rules (e.g., 7-7) strictly prohibit the commingling of trust funds or using funds from one client's trust account to pay expenses or cover shortfalls for another client.