Interest On Deposit In Attorney Trust Account
Category Property Thought Of The Week
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.