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« Key Glossary of terms for Property Acquisition part 3 | Main | Maintain the value of your Property Investment »

Key Glossary of terms for Property Acquisition part 4

By arlene | August 28, 2008

Sectional title

This is an entire complex (flats and townhouses) divided into individual units which are then sold separately

Sole mandate

A signed agreement between the seller and the estate agent to market a property exclusively. Once the agent is allowed to market the property, he has sole rights.

Real Estate AwareSubject-to sale

An expression used by estate agents to describe a sale contract which will only become unconditional between the parties if and when the buyer sells his own property.

Suspensive condition

A provision in a contract suspending its operation until a specific condition is fulfilled. A clause stating that the sale will only be confirmed if a mortgage loan is granted is a typical suspensive condition.

Title deed

A legal document, registered at the Deeds Office as proof of ownership of property.

Transfer fees

These comprise transfer duty, conveyance fees and VAT. Transfer duty is a tax levied by the government on the purchase of immovable property and is calculated on the purchase price.

Valuator

Or Assessor. The person appointed by the bank to determine the value of the property being purchased.

Variable interest rate

The official interest rate charged by the bank fluctuates according to the repo rate (as determined by the Reserve Bank).

Voetstoots

A Dutch expression meaning that a property is bought “as is” with all its patent and latent defects. This clause is always found in a sale document, and therefore: “let the buyer beware”. All defects must be mentioned to the buyer upfront. If there are any defects in the property of which the seller was unaware, the buyer will acquire the property with such defects.

Zoning

The local authority determines the purpose for which a property may be used, for example, residential or business.

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Key Glossary of terms for Property Acquisition part 4

Topics: Agent, Contract, Market, Property, Residential, Sale |

5 Responses to “Key Glossary of terms for Property Acquisition part 4”

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