Housing Terminology Flashcards
1
Q
What is a full title property?
A
- when the person who buys the property becomes the legal owner of the entire property
- including the land and structures on it
2
Q
What is a sectional title property?
A
- when the buyer becomes the legal owner of a section of the housing complex
- this unit belongs to the individual homeowners but common areas are jointly owned
3
Q
What is a tenant/lessee?
A
- a person who rents accommodation
4
Q
What is a landlord/lessor?
A
- a property owner who is letting a property
5
Q
What is rent?
A
- the amount a tenant pays every month to the landlord
- to acquire the right to live in the property they are renting
6
Q
What is a lease?
A
- the agreement between a landlord and a tenant
- a legal document
- once signed, grants the tenant certain legal rights and responsibilities regarding the property
- for however long the lease lasts
7
Q
What is a building contract?
A
- a written agreement between a landowner and builder
- lists all the terms and conditions
- where the builder undertakes to build a house according to an agreed plan and specifications for a specific price on the stand
8
Q
What is a mandate?
A
- permission given to an estate agent when they have agreed to sell a property on behalf of the seller
9
Q
What is an offer to purchase?
A
- an offer to buy a property in writing
- states the terms being offered
10
Q
What is a deed of sale/sale agreement?
A
- once accepted and signed, the offer to purchase becomes a legal contract between the buyer and seller
- describes legally binding terms and conditions regarding the sale of the property
11
Q
What is a conveyancer?
A
- an attorney responsible for compiling the deed of sale and overseeing the transfer process
12
Q
What are transfer costs?
A
- legal fees payable when a property is purchased
- for the transfer from of the property from the seller’s name into the buyer’s name
- fee determined by selling price
- regulated by the government
- paid to conveyancer
- includes transfer fees, deeds office fees and VAT
13
Q
What is a transfer duty?
A
- government tax that needs to be paid when the ownership of the property to the buyer
- conveyancer pays the amount to the Receiver of Revenue (SARS) after they have collected it from the buyer
- amount depends on property’s purchase price
14
Q
What is a deed of transfer?
A
- a document compiled but the conveyancer
- that is submitted to the Deeds Office
- to transfer the ownership of the property from the seller to the buyer
15
Q
What is the deeds office?
A
- the property registration office
- where the transfer of the property is registered in the buyer’s name
16
Q
What are Deeds Office fees?
A
- amount payable to the Deeds Office to register the property into the buyers name
- based on the purchase price
- regulated by the government
17
Q
What is a title deed?
A
- legal documents issues by the Registrar of Deeds
- proves that the buyer is now the legal owner of the property
- filed at the Deeds Office
- must be reflected in the National Property Registry
18
Q
What is a rates clearance certificate?
A
- a certificate indicating that rates and taxes have been paid to the local municipality
- no transfer is possible until the buyer, seller or both have paid this proportionally
19
Q
What is an electrical compliance certificate?
A
- confirms that the property’s electrical system complies with the set safety regulations
- must be obtained before transfer can be registered
20
Q
What is a mortgage bond/home loan?
A
- loan from the bank to buy property
0 registered as security for the repayment of the home loan - registered at the Deeds Office
- paid back in monthly instalments with interest
21
Q
What are bond registration costs?
A
- include conveyancer’s fee, tax payable to the government (stamp duty), Deeds Office Fee
- determined according to prescribed tariff
- depends on size of home loan
22
Q
What is a loan agreement?
A
- legally binding agreement where the borrower undertakes to pay back the borrowed money with interest over an agreed period of time
23
Q
What is a valuation fee?
A
- fee paid for the valuation carried out by bank assessors of the property offered
- or which is held as security for the loan when applying for a home loan
24
Q
What is an initiation fee?
A
- once-off fee for setting up the home loan account
25
Q
What is an occupation certificate?
A
- certificate certifying the date of occupation of a house by a beneficiary
- that the house is to their satisfaction
- subject to terms listed therein
26
Q
What is a warranty?
A
- an undertaking that goes to the heart of the agreement
- if breached, entitles the homeowner to cancel the agreement and sure for damages
