Author: James Phillipson – STBB
26 March 2019
INTEREST ON DEPOSIT IN ATTORNEY TRUST ACCOUNT
With effect from 1 March 2019, interest earned on moneys invested by your attorney in a designated trust account, must be dealt with in accordance with section 86(4) of the Legal Practice Act.
This section provides that the attorney firm must pay 5% of the interest earned to the Legal Practitioners Fidelity Fund.
As agreements for the sale of immovable property often have a provision requiring the purchaser to pay the deposit to the conveyancing firm’s trust account, to be invested for the benefit of the purchaser, this new provision will impact on such deposits.
Contact your STBB conveyancer for assistance on how to reflect this new provision in your sale agreement.
James Phillipson is a director based at STBB’s Cape Town office. He specialises in residential and commercial property. James joined STBB in 2005 after working in the Insolvency arena in the UK for several years. James serves on the firm’s Executive Committee.