THOUGHT OF THE WEEK 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 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.
For assistance in all aspects of your agreement to buy or sell immovable property, contact KAPLAN BLUMBERG before you put pen to paper.