How Does Buyers Trust Work?
PUBLISHED 8 SEP 2021
Trust is fundamentally important to every business transaction and in the case of a property sale it becomes absolutely crucial.
When you buy or sell your Cape Town home, you’ll need to know that your deposit is in good hands. This will also prevent unexpected delays from cropping up due to payment issues from the buyer’s side.
To facilitate the smooth transfer of property, Buyers Trust offers buyers and sellers an escrow transfer service that’s convenient, easy to use and could help you save significantly on costs during the sale.
Here’s a brief introduction to this innovative service which is highly recommended for anyone thinking of selling or purchasing residential property.
What is Buyers Trust?
Buyers Trust is a third-party escrow service that was recently launched by Ooba, a bond provider that is making a splash in the South African market.
During a sale, the 10% to 20% deposit typically associated with a property transaction is placed in a third-party account at a major bank.
The funds will remain in the account, which is in the buyer’s name, accruing interest until the terms and conditions of the sale are met.
At this stage, the deposit will be remitted to the seller and any interest that has accrued will be refunded to the buyer.
The bonus of Buyers Trust is that you can view the account or request statements at any time, there is 100% transparency on the account and top-end security on the app.
The benefits of using an escrow service
The neutrality and security offered by a third-party bank account allows both buyer and seller to proceed with the property transaction in good faith, knowing that the funds will be transferred automatically by Buyers Trust.
In addition, the following specific benefits apply to buyers and sellers using the service:
Automatic FICA approval
Competitive interest rates
Guaranteed payment to the transferring attorney
A single, low fee covering the entire process
Ready to invest in a Cape Town home?
With services like Buyers Trust making it even easier to take advantage of the current low interest rate environment, this year could be the ideal time to purchase a residential property in Cape Town.
Knowing that your deposit will be safe when you are ready to make that offer means that you can buy with confidence. Contact the Cape Realty team today to view our portfolio of homes across the Cape Peninsula.
Image Credit: https://pixabay.com/photos/approval-computer-conference-4849109/