When renting a property, tenants usually pay a deposit to cover potential damages. Traditionally, landlords hold this deposit, which can lead to disputes and mistrust. Escrow services like Paysho offer a solution by acting as a neutral third party to hold the deposit until the end of the tenancy.
Here’s how escrow works for rental deposits:
Agreement: The landlord and tenant agree to use an escrow service and outline the terms in their lease agreement.
Deposit Transfer: The tenant transfers the deposit to the escrow service’s secure account.
Holding the Deposit: The escrow service holds the deposit safely and impartially for the duration of the lease. Neither the landlord nor the tenant can access the funds during this time.
End of Tenancy: At the end of the tenancy, both parties inspect the property for damages.
Release of Funds:
If both parties agree on the condition of the property, the escrow service releases the deposit to the tenant.
If there are damages exceeding fair wear and tear, the landlord provides evidence, and the escrow service releases the appropriate amount to cover the repairs. Any remaining funds are returned to the tenant.
If a dispute arises regarding the deposit, the escrow service may facilitate a resolution or follow a predetermined process outlined in the lease agreement. This could involve mediation or arbitration.
Benefits of Using Escrow for Rental Deposits:
Protection for both parties: The tenant is protected from unfair deductions from their deposit, while the landlord is assured that funds are available to cover legitimate damages.
Transparency and Trust: The involvement of a neutral third party fosters transparency and trust between the landlord and tenant.
Reduced Disputes: The clear process and impartial handling of funds by the escrow service minimize the likelihood of disputes.
Peace of mind: Both parties have peace of mind knowing that the deposit is securely held and will be disbursed fairly according to the agreed terms.
The Seller registers on Paysho. After registration, they will create a New Transaction, detailing what they are selling, provide a brief description of the goods, the price and the details of the person they are selling it to. The Seller will have 1 day to complete the creation of the transaction and to notify the Buyer of it, after which the system will automatically cancel the transaction.
An email will be sent to the Buyer, inviting them to the transaction as created by the Seller via a link to the Paysho website. The Buyer will be required to register before they can access the transaction.
After registration, the Buyer will then have access to the transaction. If they are happy with its details and terms, they will approve it. If they do approve it, they will be directed to a page containing the details of Paysho’s audited trust account into which they will make the payment for the goods. An invoice for the transaction will also be emailed to them. The Buyer will have 1 day to either accept or decline the terms of the transaction after which the system will automatically cancel the transaction.
If the Buyer disagrees with or rejects the details and terms of the transaction that the Seller created on Paysho, they will be required to provide the reason(s) for doing so. The Seller will then be notified via email with the comments from the Buyer and be granted to the opportunity to respond and/or modify the terms of the transaction until both parties are satisfied with them. If the parties cannot reach an agreement on the terms of their transaction, it will be cancelled 1 day after the last communication between them.
When the Buyer’s payment appears and is verified in the Paysho account, the Seller will then be notified of that and be given the go-ahead to ship the goods to the Buyer. The funds will remain safely secured in the Paysho account until both the Buyer and Seller are happy that the terms of the transaction have been met. The Seller will have 2 days to ship the goods and to supply both Paysho and the Buyer with the shipping details (courier and tracking number).Should the Seller not ship the goods and also provide the tracking information to the Buyer and Paysho, the transaction will be cancelled and the Buyer refunded (minus the Paysho fee: See poinf 5 on the General Instructions).
When the Buyer receives the goods, they will have 1 day to accept and confirm whether they are happy with them or not. If they confirm that they are happy with the goods, Paysho will release the funds to the Seller and the transaction will be concluded. If the Buyer, for some reason, does not confirm whether they are happy with the goods or not, after 1 day, the Paysho system will automatically release the funds to the Seller and the transaction will be concluded.
If the Buyer rejects the goods, they will be required to provide reasons for that. The Seller will then receive notification of this and be granted an opportunity to respond. This process will go on until both parties are able to reach a resolution to the matter. If and when they do, the Buyer will be required to accept the goods after which Paysho will release the funds to the Seller and the transaction concluded.
In the event that the Buyer is not satisfied with the goods received from the Seller and no agreement can be reached between them as to how to proceed from there, the Buyer will be required to ship the goods back to the Seller and to supply both the Seller and Paysho with the tracking information (courier and tracking number) within 2 days of their decision to go that route. Failure to do that will result in Paysho releasing the funds to the Seller and the transaction deemed as being concluded.
When the Seller receives the goods, they will have 1 day to accept and confirm whether they are happy with them or not (ie. the goods are still in the condition in which they were sent by the Seller). If they confirm that they are happy with the goods, Paysho will release the funds back to the Buyer and the transaction will be concluded. If the Seller, for some reason, does not confirm whether they are happy with the goods or not, after 1 day, the Paysho system will automatically release the funds to the Buyer and the transaction will be concluded.
If the Seller rejects the goods (for not being in the condition in which they were sent), they will be required to provide reasons for that. The Buyer will then receive notification of this and be granted an opportunity to respond. This process will go on until both parties are able to reach a resolution to the matter. If and when they do, the Seller will be required to accept the goods after which Paysho will release the funds to the Buyer and the transaction concluded.
Should the parties not be able to resolve any dispute among themselves during the course of an active transaction, Paysho will not release any funds to neither the Buyer nor the Seller until both parties find a solution they are both happy with. If an agreement between the parties cannot be reached, Paysho will release any fees in our possession only on the instruction of a legal body.
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YOU CAN BE SURE WITH PAYSHO
Whether you're spoiling yourself or a loved one, you can now buy online with complete peace of mind. No matter whether you are shopping on Gumtree, OLX, Facebook Marketplace or any other classifieds platform, Paysho is taking the risk out of Buying or Selling goods online.
Paysho provides financial protection for both the buyer and seller and helps to eliminate the possibility of either party falling victim to fraud or scams.
Now, if that was not enough of an incentive, Paysho will also be selecting one transaction made using the platform each month for the next 3 months, and giving away R500 to BOTH the Buyer and the Seller - just to say thank you for choosing to use Paysho.T&C's Apply.
Either way, just by using Paysho, you're a winner.
So, if you are going to be buying or selling online, be sure to register today for FREE.
Winners will be announced on the Paysho Facebook Page at the start of each new month, so be sure to Follow Paysho for all promotional updates.
