In most Estate Agents deeds of sale it refers to the purchaser’s deposit being paid to the conveyancers and invested in a trust bank account in terms of Section 78 (2A) of the Attorneys Act. The interest accrued from this deposit would then be for the benefit of the purchaser.
With effect from 1 November 2018, the Attorneys Act (53 of 1979) was replaced by the Legal Practice Act (28 of 2014). In the new act, the old section 78 (2A) which dealt with this trust banking account has been replaced by section 86(4).
The reference to Section 78 (2A) in your deeds of sale is therefore now incorrect. The clause should now refer to “Section 86(4) of the Legal Practice Act (No.28 of 2014)” as opposed to “Section 78 (2A) of the Attorneys Act (No.53 of 1979)”.
If this applies to you and if have any doubt about how to change your deed of sale, do not hesitate to contact one of our attorneys.
Deon Welz & Cheryleen Naidoo