Author: Maryna Botha – STBB
23 October 2018
DEPOSITS IN SALE AGREEMENTS OF IMMOVABLE PROPERTY
To bring about a valid and binding agreement, it is not a legal requirement that a purchaser pays a deposit. However, where a purchaser puts down an amount as a deposit, it generally signals financial ability and a commitment to purchasing the property.
The agreement should clearly stipulate whether the deposit is to be paid to the appointed conveyancers or the estate agent. The agreement must also clearly stipulate that the deposit must be held in a separate interest-bearing account and that, pending registration of transfer, interest on the amount accrues for the benefit of the purchaser. Failure to do this will oblige the conveyancers or estate agent to pay the interest to their respective fidelity funds.
Speak to your STBB conveyancer for assistance in all your property transactions, before putting pen to paper.
Contact STBB for assistance on www.stbb.co.za/contact.