Property Seekers

Comprehensive Guide To Real Estate In South Africa

Comprehensive Guide To Real Estate Terminology

TermDescription
Access BondA home loan that allows the borrower to access additional funds over the original bond amount.
Agreement of SaleA legal contract outlining the terms and conditions of a property sale between buyer and seller.
AmortizationThe gradual repayment of a home loan through regular installments covering both principal and interest.
AppraisalAn evaluation of a property's value conducted by a certified appraiser.
Asset AppreciationThe increase in a property's value over time due to market conditions or improvements.
BondA formal agreement and legal contract for a home loan between a borrower and a lender.
Bond AttorneyA lawyer responsible for handling the legal aspects of registering a bond on a property.
Bond OriginatorAn intermediary between a borrower and various lenders to secure the best home loan terms.
Buyer's AgentA real estate agent representing the interests of the buyer in a property transaction.
Capital Gains Tax (CGT)A tax on the profit earned from selling a property or asset at a higher value than its purchase price.
ConveyancingThe legal process of transferring property ownership from the seller to the buyer.
Deed of SaleA legal document outlining the terms and conditions of a property sale, signed by both buyer and seller.
DepositThe initial payment made by the buyer to secure a property purchase.
DevaluationA decrease in a property's value over time due to various factors.
Dual MandateWhen a seller instructs multiple estate agents to sell their property, potentially leading to confusion and conflicts of interest.
Earnest MoneyA deposit made by the buyer to show serious intent to purchase a property.
Estate AgentA licensed professional facilitating the sale, purchase, or rental of properties on behalf of clients.
Exclusive MandateA formal agreement giving one estate agent exclusive rights to market and sell a property for a specified period.
First-Time BuyerAn individual purchasing a property for the first time, often eligible for certain benefits or incentives.
Fixed-Rate MortgageA home loan with a constant interest rate and fixed monthly payments throughout the loan term.
Freehold PropertyOwnership of both the land and any structures on it, granting full control and rights to the owner.
Home LoanA loan provided by a financial institution to finance the purchase of a property or home.
Homeowners Association (HOA)An organization managing and enforcing rules and regulations within a community or development.
Interest RateThe percentage charged by a lender on the principal loan amount, determining the cost of borrowing.
Leasehold PropertyOwnership of a property for a specific duration, usually subject to a lease agreement with a landowner.
Listing AgreementA contract between a property owner and a real estate agent, outlining terms for marketing and selling the property.
MortgageA loan secured by a property, enabling the purchase or refinancing of real estate.
Offer to PurchaseA formal proposal made by a buyer to purchase a property at a specified price and under certain conditions.
PrincipalThe initial amount of money borrowed in a loan, excluding interest.
Private PropertyReal estate owned by individuals or entities, not the government or public entities.
Property TitleThe legal document proving ownership and rights to a property.
Real Estate Investment Trust (REIT)A company that owns, operates, or finances income-generating real estate in various sectors.
RepossessionThe process of reclaiming a property by a lender due to the borrower's failure to meet loan obligations.
Sectional TitleA form of property ownership in a multi-unit development, where each unit owner has a separate title for their unit.
Seller's MarketA real estate market where demand from buyers exceeds the available supply of properties, giving sellers an advantage.
ServitudesLegal rights or restrictions on the use of a property, often granted to a third party.
Title DeedA legal document providing proof of ownership and property rights.
Title InsuranceInsurance protecting against losses due to defects in the property title or ownership disputes.
Transfer AttorneyA lawyer responsible for overseeing the legal transfer of property ownership during a sale.
Transfer DutyA tax paid to the government upon the transfer of property ownership from seller to buyer.
Trust PropertyReal estate held in a trust and managed for the benefit of designated beneficiaries.
ValuationAn assessment of a property's value conducted by a professional appraiser.
Variable-Rate MortgageA home loan with an interest rate that can fluctuate based on market conditions.
Voetstoots ClauseA clause in a property sale agreement indicating the property is sold 'as is,' without warranties or guarantees.
ZoningThe legal designation of how land can be used or developed within specific areas, regulated by local authorities.
Real PropertyTangible assets such as land, buildings, and improvements attached to the land.
Rental YieldThe return on investment generated from a property through rental income, expressed as a percentage.
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