Keeping of deposits and the notarial clients’ account

Abstract

Despite it being common for the purchaser to pay a deposit at Promise of Sale stage, the regulation of the Notarial Client’s Account is primarily based on custom rather than legislation. In recent years there has been a lot of discussion surrounding the responsibilities of Notaries with regard to keeping of deposits on behalf of their clients and the Notarial Clients’ Account. This study aims to discuss the Deposits’ force coming from custom and distinguishing between Deposits on Account of the Price and Deposits in earnest (Kapparra) as well as the pitfalls which ensue from keeping such deposits. Additionally, the liability of the Notary with regard to the keeping of said deposits is also discussed with reference to legislation and court judgements decided. This study provides a discussion of the remedies and drawbacks currently being proposed and discussed amongst Notaries in hope for the eventual establishment of the best way forward.