Stakeholding included
Our fixed fee includes taking the deposit paid by the purchaser and paying it into our trust account. The funds are held in trust for both the purchaser and the vendor until such time as they become payable to one or the other.
What is the deposit?
Basically, the deposit is an amount of money paid by the purchaser to give the vendor security that the purchaser will honour their obligations under the contract. If
the purchaser fails to fulfil those obligations the deposit paid by the purchaser may be forfeited to the vendor.
If the contract allows the purchaser to cancel for a legitimate reason, the deposit will be refunded to the purchaser.
It is our role to determine, and to advise on, when the deposit should be released, when it may be forfeited and when the purchaser is entitled to a refund.
The commission/deposit dilemma
The average estate agent has come to see the deposit as the source of their commission, and this has led to some rather unsavoury practices in the industry.
The agent's reliance on the deposit for their commission can lead to commission rage, and creates conflict between the vendor and the estate agent.
Because we do not operate on a commission basis and we do not deduct our costs from the deposit, the commission/deposit problem is eliminated entirely.
Our trust account
We operate a secure, audited trust account pursuant to the Legal Profession Act. A deposit paid by a purchaser is held in our trust account according to law until it is released to the appropriate stakeholder.
As lawyers, we have a full understanding of the concept of stakeholding, the legal position of the stakeholder, and the role of the stakeholder in ensuring that the interests of all parties are protected.
Release of the deposit
Because we are a law firm, we can deal with the legal complexities associated with the release of deposits (a source of frustration for many vendors), and we can advise you on the options
available to you if the purchaser's lawyers object to the release of the deposit.
Costs
There are no additional costs charged for use of our trust account.
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