2 thoughts on “Who gets the interest if money is paid into a trust account?”

  1. I bought a property and paid the whole amount in November 2022, being 2 Million Rand. My attorney explained she would deposit this amount in a trust interest bearing account. The seller had aoutstanding amount at the municipality, that coursed a delay. In February my attorney asked me to pay the account being her fees, transfer costs etc. A total amount of R. 82000. She was aware that there was some trouble at the sellers side, resulting in the fact that the transfer only took place in July this year. 2 weeks ago I reminded my attorney to forward me a recap of interest earned in her trust account, and she did not even replied. I am a pensioner, don’t know how to approach the attorney in a professional way. It’ feels so bad to approach another attorney for advice. Can you please advice? Regards Frans Welten

    1. Dear Frans

      Thank you for your comment. Usually, the interest on the invested purchase price accrues to the Purchaser who paid it. It does sometime happen that the Offer provides that the interest on the funds paid to the Estate Agent or Conveyancer to secure the Purchase Price accrues to the Seller, but this is not common. The costs of the transfer are not usually invested though – they are held by the Conveyancer until registration and then accounted for. There are circumstances when a Conveyancer can debit part of their costs before registration but that is a separate discussion. I would suggest you email the Conveyancer and advise that she still owes you an accounting of the interest on the purchase price. If you have no response, try phoning the Conveyancer. If you still have no response, then the Conveyancer has no reason to object if you report them to the Legal Practice Council. The website of the Legal Practice Council has guidelines on filing a complaint against a practitioner. We would be surprised if you need to go so far though. All the best Andrew Smith | Director

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