Prime Kapital has placed the advances paid by residential customers into fiduciary accounts, which are kept separately from the developer’s accounts. Prime Kapital will not have access to customer deposits until a home is completed and delivered to the customer and the risk of losing the advance paid is eliminated in case the developer does not keep its promise to deliver the contracted home within the promised time.
“Prime Kapital is a company financed from its own sources and, for this reason, it does not need to use the amounts paid in advance by customers to develop its projects. Customer advances are a form of commitment from those who want a home and not a free source of financing for the developer,” said Maggie Kitshoff, residential and office managing director at Prime Kapital.
