If you're new to the industry or just need a refresher course, you've come to the right page. The Property.CoZa Real Estate glossary is your ultimate guide to commonly used jargon, terms, and words that every real estate professional should know. So grab your favorite drink and start scrolling.
By comparing two properties in the same property market, this method is used to estimate the value of a property.
An additional section added to an original sale contract including specific points agreed to by relevant parties.
A property professional who has completed a qualification with the Institute of Estate Agents of South Africa. Agents receive a certificate annually that confirms their compliance with the code of conduct. Find out more about selecting an estate agent.
A percentage of the selling price paid by the seller to the agent for services performed in selling a property.
An addition or appendix to a legal document.
A tax charged on the profit earned from appreciation of a property from the time of purchase. This article may provide more details on CGT.
The amount of money it takes to maintain a property over time
A caveat is simply a warning that is acquired by a person or organisation through a statutory injunction to protect their ownership of a property and registering this on a Title Deed in terms of the Real Property Act 1900. A caveat can prevent the registration or changes to a Title Deed unless the person or organisation who registered the caveat is made aware and agrees to these changes, e.g. a mortgage bond.
A percentage of a property transaction amount that a property professional is owed for their service surrounding a completed property transaction.
Undivided parts of a commonly owed property, such as stairwells, passages and walkways, parking areas, gardens, swimming pools, etc. These common use areas are maintained at a cost to all the owners of a complex via levies.
The Conveyancing process has several steps starting with a signed Offer to Purchase through to transfer of the property from the seller to the buyer via registration at the Deeds Office. This article may provide more information on the conveyancing process.
A tenant will be required to provide information to an agent or landlord for them to conduct a thorough credit check to provide comfort that the rental will be paid on time and that the applicant has the financial resources to conclude the rental agreement.
Renters of property are normally required to provide for a damage deposit amounting to one to two month’s rental which is kept in a Trust Account by the agency or landlord to pay for any damages that may occur during their residency.
A given address of a party to a contract which will serve as the address for written legal notice.
Permission given by a seller to two different agencies to market and sell their property.
Permission given by a seller to one agency to market and sell their property exclusively and foregoing their own right to sell their own property.
Relating to Sectional Title where specific areas of the common property, which is co-owned by all owners, but may only be used by the owner/owners of a given section with full usage rights, for instance, a parking bay or a balcony.
This is the common terms for the Financial Intelligence Centre Act 38 of 2001, which requires any institution that is party to a financial transaction to gather specific information to keep on record relating to the parties, i.e. a buyer and seller are required to provide a copy of the National Identity Document or Passport and proof of residence in the form of a rate account or rental agreement.
‘Lease Goes Before Sale’ principle, which dictates that tenants may remain in occupation of a property after sale until such time as the lease expires.
When renting a property, a full inspection is usually conducted by the property professional or landlord and the tenant, to identify any defects that will not be repaired. At the end of the rental term, and outgoing inspection will be conducted to identify any further defects that the tenant will be required to repair at their own cost.
Any deposit paid by a buyer will be put into a saving account, which accrues interest over time. A short-term investment can also be made. This is done by an attorney or real estate agent.
An agent who is registered at the Estate Agency Affairs Board who is in the process of qualifying and therefore assigned to a Mentor Agent, who is fully qualified.
A defect that is not clearly apparent when inspecting a property, and may only be discoverable at a later stage, for instance, a leak in a pool pipe or electrical issues.
The retention of property until a debt has been repaid where a tenant has incurred expenses from or made improvements to a property.
A Living Standard Measure (LSM) is used to identity the profile of people living in specific neighbourhoods in South Africa. The population is segmented into categories from 1 to 10 where 10 is the most wealth and 1 represents no measurable wealth.
In terms of a Sectional Title properties, a person or company appointed to provide scheme management services to a Body Corporate for reward, including specific services to maintain the well-being of the property, the collection of levies and arranging required meetings.
A mandate is a contract between a seller and a real estate agency to list, market and sell/rent their property for an agreed commission. There are different types of mandates, e.g. Exclusive, Sole, Joint/Dual and Open and each type of mandate is a commitment to pay commission to the agent in the event that they conclude a contract with a buyer/tenant.
A fully qualified agent, registered with the Estate Agency Affairs Boards, who oversees the training and support of an Intern Agent who is in the process of qualifying.
An illegal act of moving large amounts of money acquired from criminal activity and using legitimate sources to ‘clean’ the money, for instance, paying cash for high value assets.
A statute used to oversee the standards and acceptable norms of consumer credit.
Where one party’s use of land interferes with a neighbour’ s use and enjoyment of his or her land.
A legal term meaning the final cancellation or lapse of a contractual agreement. All parties involved return to the positions they were in before they signed the agreement without any further legal obligations to each other.
The occupation date stated on a contract of sale by be different to the registration date, i.e. a new owner may take up residence before ownership of a property. In this instance, a market related occupation rental will be agreed to be paid by the prospective owner to the owner until registration takes place at the Deeds Office.
A listing where the commission is only payable if the agent produces a buyer before the seller or another agent.
A calculation, based on floor area of a section against the full floor area of the scheme, used to allocate levies in Sectional Title property. The PQ is used to calculate the levies and the owner’s voting value, e.g. the larger the section the higher the levy and voting value.
A defect that is clearly apparent when inspecting a property, for instance, a cracked window or a broken tile.
Permission granted by a legal party for another party to act and make legal decisions on their behalf. This can either be comprehensive or restricted to certain acts and/or lasting only for a certain amount of time.
A duly qualified estate agent registered with the Estate Agency Affairs Board as the responsible agent required to abide by all applicable laws and regulations.
When title in the property legally changes from the seller to the buyer, upon registration at the Deeds Office.
The amounts calculated by the municipality in terms of a property using the municipal valuation, as well as services to the property.
Legal aid and advice is provided for landlords and tenants who raise complains with the RHT and their cases are investigated. Mediation and arbitration are offered and the ruling of the RHT is final.
The rate at which the Reserve Bank lends money to private banks which, in turn, affects the rate of interest charged to consumers on credit agreements. Read more about the Repo Rate.
If a clause refers to the terms being null and void, terminate on a given date, etc. the clause will only be in effect until the time given has expired. If the requirement is not met by the given time and date, the contract will be considered terminated.
The rules that the owners of units and occupiers of sections must follow as set out the Body Corporate or the Trustees.
In Sectional Title, each owner is given ownership of a specific Section within a complex and this Section is registered on the Title Deeds, which will also have a copy of the sectional plans attached. These sections can be separately owned from the rest of the property under a separate Title Deed.
The plans that shows the division of the land and building(s) into sections and common property. A copy of the scheme’s sectional plan will be available from the Deeds Office and should always be attached to the Title Deed of the property.
Sectional Title is separate ownership of individual units, e.g. flats, apartments, townhouses, etc, in a complex or estate, governed by the Section Title Schemes Management Act 8 or 2021.
Is a piece of land with a building(s) where individual owners own portions of the building(s) and co-own the common property. A scheme can be a vertical block of apartments or a one level row of townhouses which may be attached or detached. A scheme must have a minimum of two sections and can be used for residential or commercial purposes or a mixture of both.
A limited real right over immovable property which is registered on the Title Deed and can be transferrable. A servitude gives rights to the holder of the servitude over another person’s property, which may include access right or water rights.
A sole mandate is granted by a seller to only one agent or agency to market and sell their property for commission. The seller retains the right to sell their own property with a sole mandate. Find out more about the benefits of sole mandates.
The persons elected by the body corporate or homeowner’s association at each AGM to represent all the owners in the complex. The trustees are responsible for the management, administration and maintenance of the common property and they must ensure that all the body corporate or homeowner’s association duties are carried out.
The right to use a property.
A legal document whereby the signer voluntarily surrenders or relinquishes certain contractual rights and privileges.
