By Oupa Baloyi, Director | August 2026
When you buy a home, one of the first and largest payments you will make is the deposit on the purchase price. In South Africa, this is typically held in trust by the conveyancing attorney until the property is registered in your name at the Deeds Office. But what happens when that money disappears?
A recent case in Gauteng has brought this question into sharp focus. A widow who paid R500,000 as a deposit on a property almost a decade ago has finally been vindicated after a court ordered the law firm to repay her.
What Is a Property Deposit, and Who Holds It?
When you sign an Offer to Purchase, you will usually be asked to pay a deposit, typically between 5% and 10% of the purchase price. This deposit is not paid to the seller directly. Instead, it is held in the trust account of the conveyancing attorney appointed to handle the transfer. The money stays in the trust account until the transfer is registered at the Deeds Office. Only then is it released to the seller.
How Trust Accounts Are Supposed to Work
In South Africa, attorneys trust accounts are strictly regulated by the Legal Practice Council. Every cent must be accounted for. The key rules are: First, trust money must be kept entirely separate from business money. Second, trust funds must be deposited without delay. Third, every transaction must have a clear reference. Fourth, attorneys may not borrow from trust accounts under any circumstances.
Red Flags Every Buyer Should Know
1. Paying into a business account. A legitimate conveyancer will always instruct you to pay into their trust account. If the account name does not include the word trust, ask questions.
2. No trust receipt. Within days of paying, you should receive written confirmation. At OM Baloyi Inc, every deposit is acknowledged within 24 hours.
3. Vague progress updates. Conveyancing has clear stages. A competent conveyancer tells you exactly where your matter stands.
4. Disciplinary history. The Legal Practice Council maintains records of findings against attorneys. A pattern of trust account complaints is a serious red flag.
What to Do If Something Is Wrong
Request a trust account statement. You are entitled to see a record of your money. Contact the Legal Practice Council. Consult another attorney to check the Deeds Office. Do not wait. Delay makes recovery harder.
How OM Baloyi Inc Protects Your Deposit
At OM Baloyi Inc, our trust account is independently audited, every deposit acknowledged in writing, and clients receive regular updates throughout the conveyancing process. We offer free OTP drafting. By appointing us from the start, you gain peace of mind from a firm that takes compliance seriously.
How We Can Help
OM Baloyi Inc offers a full range of conveyancing services, from OTP drafting through to registration. Weekly updates, transparent billing, and secure handling of all deposits. Contact us at 087 265 1059, email info@ombaloyi.co.za, or visit www.ombaloyi.co.za.
Disclaimer: This article is for general information purposes only and does not constitute legal advice.