- Buyers Trust can keep your deposit “in escrow”, meaning it holds the funds until the terms of the agreement have been met.
- This alleviates the concerns that come with exchanging large amounts of money, and protects you from the risks of having your deposit phished.
- Buyers Trust provides an account in your own name with one of the major banks, a great rate of return on interest, transparency and high-level security.
Buying a home usually requires a deposit, a substantial upfront investment that amounts to 10% to 20% of the property value. It’s understandable that home-buyers would be concerned about fraud and other factors that come into play when exchanging such large amounts of money.
Buyers Trust: How it mitigates the risks
Using an escrow account can alleviate your concerns. “In escrow” refers to funds and documents which have been transferred to a third-party that holds them “in escrow” until the conditions of the agreement between buyer and seller have been met.
Buyers Trust, a subsidiary of the ooba Group, is an example of a third-party that can provide safekeeping for your deposit. It offers a strong alternative to the transferring attorney and estate agency as a place to invest your deposit.
As well as providing a safebox, Buyers Trust also generates interest on the amount deposited.
How Buyers Trust works
This safe and secure service protects you from the risks of having your deposit phished. Buyer Trust creates a bank account with one of the major banks in your name, you transfer your deposit directly into that account, and Buyers Trust administers the account under a specific investment mandate provided by you. You can view the account at any time and receive statements, providing 100% transparency on your investment.
How do I sign up for Buyers Trust
When signing the Offer to Purchase, select Buyer’s Trust as the financial service provider with whom you wish to invest your deposit. You’ll gain the advantage of an account in your own name with one of the major banks, a great rate of return on interest, transparency and high-level security.
More benefits of Buyers Trust
- Before opening an account, the app enables you to be FICA’ed electronically, making the process seamless.
- They issue a guarantee to the transferring attorney that you have fulfilled your contractual obligations to the property seller.
- You will be sent regular statements, and you’ll be able to easily keep track of all interest you earn on the account.
- The Buyers Trust fee covers everything, including administration fees charged by the bank, so there will be no additional charges.
- Buyers Trust will transfer the funds to the transferring attorney when requested, so you can take ownership of the property.
- Once the property has been transferred, and the deposit paid to the seller’s attorneys, the account will be closed, and the net interest earnings calculated and delivered to you.
Buyers Trust is regulated by the Financial Sector Conduct Authority, and takes extensive measures to combat fraud and ensure the security of your deposit. You’ll be able to rely on the security measures of a major bank to keep your deposit safe, instead of exposing it to the risk of dangerous scams and phishing emails that target law firms and real estate deposits in particular.
Buying a home with confidence
With Buyers Trust, your deposit will be safe and secure, so you can go ahead with the home buying process with confidence.
Add to that, ooba Home Loans offers a range of tools that can make the home buying process easier. Start with their Bond Calculator, then use the ooba Home Loans Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.
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Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.