What kind of document is a cheque in relation to a trust account?

A cheque, in relation to a trust account, serves as a payment from that account. Trust accounts are specially designated accounts where funds are held on behalf of clients in a fiduciary capacity, often involving transactions related to real estate. When a cheque is issued from a trust account, it reflects a disbursement of those funds for a specific purpose, such as paying a contractor, settling fees, or transferring funds to the client.

This is fundamental in understanding the role of trust accounts in real estate practices, as they involve managing and protecting client funds responsibly. The cheque functions as a direct transfer of money from the trust account, ensuring that recorded transactions are transparent and properly authorized, thus maintaining compliance with fiduciary duties and legal obligations.