INVESTING
Watch out for bad actors Unfortunately , crime is rife in South Africa and the legal industry is no exception .
Smith references the recent case of disgraced Cape Town conveyancing attorney Rugaya van der Schyff , who was given a hefty prison sentence , after being found guilty of misappropriating over R4.8 million in client funds that were meant to cover property transfer costs .
“ She was disbarred in 2017 but continued to facilitate the offer to purchase for multiple properties from 2019 to date , despite knowing full well that she was banned from practising as an attorney by the Western
Cape High Court . Her clients paid money into her company ’ s trust account , which she then stole for her personal use . These victims still haven ’ t been able to recover their funds ,” Smith explains .
Verification of attorneys from Law society “ Buyers can visit the Law Society of South Africa website ( https :// www . lssa . org . za /) to confirm that the attorney is on the practising roll and in possession of a valid Fidelity Fund Certificate , which is a requirement of operating a trust account ,” says Smith
Protecting buyers from harm An additional risk that buyers should be aware of when paying large sums of money over to attorneys is
65 APRIL / MAY 2023 SA Real Estate Investor Magazine