The South African Property Dictionary...
Have you ever stared at a piece of paper, which you know contains vital information, in complete disillusionment?
Have you have looked wide-eyed at a word that you have no idea what it means, and had that sinking feeling in your stomach that you are in for a joy ride that is going to be extremely confusing?
Well, I know how you feel, so here is some of that vital information, that you don’t understand, explained in “human terms”. Please note that this is not a full comprehensive list and that well be updating this list on a contstant basis.
Alienation of Land Act: This law is usually applicable to people who do not qualify for a home loan. It describes a property sale when the property is transferred into the buyer’s name at a later date.
Borehole certificate: This is generally needed on agricultural holdings, and you need a specialist borehole contractor to give you the certificate, it states that the borehole yields a certain amount of litres per hour.
Cession: This is a customer’s policy that is ceded to the bank. For example, Standard Bank would hold the cession, while Charter or Liberty Life would retain the policy document.
Domicile branch: The branch of the customer, where his/her home loan is.
Domicilium Citandi et Executandi: This is the physical address where the delivery of a legal notice will be accepted by a party to a written agreement.
Expropriation: This is when the local authority needs a portion or the entire property for its use. The bank needs a letter from the customer and the local authority, and an assessment has to be done on the remaining security.
Further advance: This is when you need more funds; you would register a further bond over the property.
Home Owner’s Comprehensive Insurance: This policy provides cover for certain loss or damages to the property.
Interim interest: Once funds are paid out of the home loan account, interest is calculated on a daily basis on the outstanding balance. The interest is debited to the home loan account at the end of the month.
Latent defect: This is a fault or flaw that is not immediately detected, or is hidden from view on inspection of the property.
Mandate: This is an agreement between the seller and the estate agent to market the property.
NHBRC: The National Home Builders Registration Council ensures that builders extend their commitment to customers by providing a five-year warranty. Make sure you use NHBRC certified builders.
Progress Payment Form: This is a form signed and completed by the customer as building work progresses. The assessor does an inspection and releases the retention accordingly.
Readvance: When you have repaid a portion of your home loan, you may borrow all or part of the loan amount.
Sole mandate: This is an agreement between the seller and the estate agent to exclusively market the property. Once the agent is allowed to market the property, he has sole rights.
Transfer fees: These comprise transfer duty, conveyancer’s 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.
Voetstoots: This clause is always found in a sale document and means “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 your property may be used, for example, residential or business. If your property is granted business rights, talk to your local authority as it may affect its saleability.
I hope this helps you to understand just a few of those difficult words that you may encounter in your journey in property or building.
CopyWriting By: Laiken Cullen