When buying or selling a property, large sums of money inevitably change hands. Deposits, purchase prices, transfer costs, commissions - the amounts are significant, and so are the risks. Unfortunately, property transactions are one of the biggest targets for fraud and misappropriation of funds in South Africa. That’s why it’s crucial to understand where your money should go, and why it should only ever be paid into the attorney’s trust account.

What is an Attorney’s Trust Account?

Every practising attorney in South Africa who handles client funds is legally required to operate a separate trust account, regulated by the Legal Practice Council. This account is strictly monitored, independently audited, and carries built-in safeguards to protect clients.

Funds held in a trust account are not the attorney’s property - they are held on behalf of the client until the money must be paid out, whether for transfer duty, purchase price settlement, or other transaction-related disbursements. Misuse of trust money is a serious criminal and professional offence.

Why Paying Anyone Else Is a Risk

1. Estate Agents & Developers
   While estate agents and developers may request deposits, the safest route is to insist that all payments go directly to the transferring attorney. Agents’ accounts do not carry the same level of legal oversight or insurance protections.

2. Private Accounts
   Fraudsters often intercept emails or send fake payment instructions. Paying into any account that isn’t clearly the attorney’s regulated trust account exposes you to theft with little recourse.

3. Other Service Providers
   Bond originators, inspectors, or consultants may be part of the transaction, but they should never receive funds that are meant for transfer, deposit, or purchase.

The Safeguards of the Attorney’s Trust Account

• Strict regulation by the Legal Practice Council

• Independent audits to confirm compliance

• Trust Interest: In many cases, money held in trust earns interest that is passed back to the client (subject to agreements and statutory requirements)

• Professional indemnity cover to safeguard clients in the rare case of misconduct

Protecting Yourself as a Buyer or Seller

• Always verify the attorney’s trust account details directly with the attorney’s office, preferably by phone

• Be alert to last-minute “updated banking details” emails - this is a common fraud tactic

• Ask your attorney for a Trust Account Confirmation Letter if you are uncertain

• Never allow pressure or convenience to sway you into paying outside of the attorney’s trust system

Final Word

Your property transaction is one of the largest financial commitments you’ll ever make. Protect it by ensuring that all payments go directly to the attorney’s trust account. It’s the safest, most regulated, and most accountable place for your money to be.

At VDM Attorneys, we take this responsibility seriously. Our trust accounts are strictly managed, fully compliant, and designed to give our clients peace of mind. If you’re buying or selling property, insist on doing it the safe way — through the attorney’s trust account.