How long should a trust receipt be kept at the licensee's premises before it is archived?
The trust receipt must be kept for a period of seven years and must be kept at the licensee's premises for a period of three years before it is archived.
In the case of real estate in the United States, trust receipts refer to a practice commonly known as hypothecation, in which an asset is pledged as collateral against a loan. The borrower himself/herself can pledge his/her own asset as collateral or someone else (family, friend, etc.) can pledge their asset so that a person can obtain a loan. The asset holder still retains the ownership of the asset and is free to benefit from it. The lender has the right to seize the collateral and use it to recover the amount it has lent to the borrower, in case the borrower defaults.
In the case of Australia, trust receipt also refers to the rental trust receipt used for rental purposes between the homeowner or property manager and a tenant.
Hope this helps.