There is no legal requirement that a purchaser must pay a deposit to bring about a valid and binding Sale Agreement in the case of immovable property. However, putting down a deposit is generally encouraged as it signals financial ability as well as a real commitment to purchasing the property.
In the event then where a deposit is to be paid, the agreement should clearly stipulate whether the deposit is to be paid to the appointed conveyancers or the estate agency. Additionally, the agreement should 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.
It is important to note that failure to do this, will oblige the conveyancers or estate agency to pay the interest to their respective fidelity funds.
This is just one of the many complexities in today’s world of buying and selling property. There are many legislative and transactional nuances and this is where the assistance of a team of skilled and experienced local area agents can make the difference to ensuring a smooth and efficient sale and transfer process.
There have been many shifts in the Cape Town property market this year, and if you need to chat about your next property move, be sure to call us today.
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