What protections exist under SA law for purchasers of off-the-plan properties if the developer becomes insolvent before completion?
Correct Answer
B) Deposits held in trust are protected from the developer's creditors, and the purchaser may have rights as an unsecured creditor and potential insurance or statutory protections
When deposits are properly held in trust (as required by law), they are protected from the developer's creditors in insolvency. Purchasers may also have rights as creditors in the insolvency process and may benefit from any applicable statutory protections or insurance.
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