Wylde Attorneys Inc. - Plettenberg Bay

21/02/2024

07/12/2023

06/12/2023

WHAT DOES IN ESCROW MEAN?

“In Escrow” is a type of legal agreement which serves as a type of payment instrument, almost a guarantee or security for payment. This agreement enables a third party to temporarily hold money on behalf of contracting parties-usually in a trust account. This money is then released to the relevant party (the recipient) when the conditions of the contractual agreement have been met.

The escrow process always begins when contracting parties agree to make use of an “escrow agent” The money, which is the subject of the escrow agreement, is then paid into the escrow agent’s trust account. The agent will then release these funds to the recipient when the trigger event as agreed to in the escrow agreement has occurred. This trigger event could be anything the parties have agreed to. Once the funds have been released to the recipient, the interest earned on the held amount is then transferred back to the individual who deposited the money.

In practical terms, if you decide to buy a car from a seller you may enter into an escrow agreement with the seller, whereby delivery of the vehicle is the trigger event. This means that instead of paying the purchase price to the seller, it is paid to an attorney acting as the escrow agent. The agent will then hold the funds until such a time that you receive delivery of the car. The agent will transfer the money to the seller as payment for the vehicle.

WHAT ARE THE BENEFITS OF ESCROW:

1. Escrow ensures that both parties to the transaction are protected. The buyer is afforded an opportunity to inspect the goods before their money is released. The seller is safeguarded from fund reversals or dishonoured cheques.

2. It reduces the possibility of fraud in sales agreements.

3. It safeguards the buyer’s money until they receive what was promised in the agreement.

4. it provides the seller with peace of mind, as they are guaranteed to receive payment.

5. It removes uncertainty for sales agreements.

Please contact Wylde Attorneys Inc. at [email protected] or phone 044 050 5517 or WhatsApp 082 316 2461. We are situated at office no 5, 82 Longships Drive

21/11/2023

DID YOU KNOW?

A will is a document that sets out the wishes of the testator. A properly executed, valid will gives you the power to express your wishes regarding your estate after your death.

Freedom of testation allows you to bequeath certain assets in your estate to anyone, including people, charities or welfare organizations.

Your Will may not contain any terms that are:
Unlawful;
Against public policy;
Too vague; or
Impossible to perform

Legislation and the common law may also limit, to some extent, what you can do with your estate. For instance, minor children will have a claim to maintenance against a parent’s estate. Pension funds, trust property and spousal maintenance are controlled by Legislation limits how certain aspects such pension funds and trust property are dealt with. Anything contained in a will which contradicts the law will not be given effect to.

You can draft a new will at any time. You should always date your will in order to determine which is your most recent one. Drafting a new will is especially important after life changing events such as marriage, divorce or the birth of a child.

You have 3 months after your divorce to draft a new will and exclude your former spouse from inheriting from your estate. If you do not change your will during this three-month period and pass away, it will be assumed that you intended for your ex-spouse to inherit in accordance with your wishes as expressed in your will.

If you do not have a will, your estate will be distributed according to the rules as set out in the Intestate Succession Act.

If you would like assistance or advice in preparing your Will please contact [email protected] or Whatsapp 082 316 2461 to arrange a free consultation.