Deposits When A Sale Falls Through | Property Investment South Africa

Subscribe for FREE property investment advice in South Africa Youtube: http://youtube.com/@propertycornerzaSpotify: https://shorturl.at/horJTApple Podcasts: https://shorturl.at/alFG7 A property deposit in the context of residential real estate refers to a lump sum of money paid by a buyer to the seller or their estate agent as part of the property purchase process. This deposit is a financial commitment from the buyer and is typically expressed as a percentage of the property's total purchase price. The purpose of the deposit is to demonstrate the buyer's serious intent to purchase the property and to secure the deal. But what happens to a property deposit when the sale of the house falls through? In this episode of the Property Corner, Rowan will be breaking down three scenarios that have lead to a contract being cancelled or not proceeding to understand who is responsible and how that would impact your deposit. 0:00 Introduction 0:34 The simple answer 0:51 Agreements of sale & suspensive conditions 02:04 Most common example of a suspensive condition: mortgage bond application 02:55 Being in breach of the agreement of sale 03:45 Scenario 1: Not remedying the breach within the prescribed time 04:40 What constitutes a breach in South African property contract law 05:57 Scenario 2: Not wanting to proceed with the transaction or failing to meet your obligations 07:55 Scenario 3: What happens when the seller is in breach 08:53 Am I still liable if I don’t pay a deposit? 09:32 The importance of a deposit 10:47 Outro Subscribe to be notified of our next episode where we will be talking about INSERT NEXT PODCAST TOPIC Find property for sale in Cape Town or explore property development on our website http://www.asproperty.co.za