A
Addendum
Document or information attached or added to clarify, modify, or support the information in the original document or written work.
Annexure
To add as an extra or subordinate part, especially to a document
B
Beetle Certificate
Beetles infest themselves in the timber of your home, especially in roof trusses. The Beetle infestation certificate guarantees the absence of beetles from any timber in the property. One of the major drawbacks of these certificates is that certain certificates only cover certain species of beetles, therefore, ensure that the exterminator will cover all species of beetles.
Body Corporate
A group to which all apartment or flats owners of a unit title property automatically belong. A common example of a unit title is an apartment block but body corporates are used in other situations such as a managed complex. The body corporate is responsible for the management of the property including maintenance and the insurance of the building. A secretary or body corporate committee normally manages the Body Corporate and an annual levy is payable by all owners to the body corporate to cover its expenses.
Body Corporate Financials
Prescribed management rule (PMR) 37(1) of the Sectional Titles Act is the rule that requires a body corporate to have annual audited financial statements prepared and reads as follows: 1) The trustees shall cause to be prepared, and shall lay before every annual general meeting, for consideration in terms of rule 56(a), a financial statement in conformity with generally accepted accounting practice, which statement shall fairly present the state of affairs of the body corporate and its finances and transaction as at the end of the financial year concerned
Body Corporate Rules
The rules that the unit owners have to comply with. The rules could include restrictions such as whether you are permitted to have pets. You should always review these rules before purchasing to ensure you are happy with them.
Bond Approval
The agreement of sale is, if subject to a bond, subject to the Purchaser being granted a loan by a bank or other similar financial institution on terms and conditions accpepted by said Financial Institution.
Bond Registration Attorney
The Bond Attorneys (appointed by the bank registering the bond) request the draft deed and guarantee requirements from the Transfer Attorney (appointed by the Seller to transfer the property to the Buyer’s name) who obtains this from the Cancellation Attorney (appointed by the bank cancelling the Seller’s bond). This information is forwarded to the Bond Attorneys to draft bond documents.
Breach
An act of breaking or failing to observe a law, agreement, or code of conduct
Building plans
Building plans are a graphical representation of what a building will look like after construction. They are used by builders and contractors to construct buildings of all kinds. Building plans are also useful when it comes to estimating how much a project will cost, and preparing project budgets.
Business Days/ Working days
Any day (other than Sunday or legal holiday) on which legal business can be conducted. Whether Saturday is a working day or not depends on the custom or usage of the trade or jurisdiction.
Building Inspector
He is governed by a number of regulations, including the National Building Regulations Act; the national building regulations promulgated under the act; the SANS 10400 codes of practice (A to XA); other relevant SABS codes; zoning schemes; and other applicable laws and by-laws.
If your inspector stops you from performing an on-site activity, ensure you know why he is stopping you and that it is because of one of the regulations mentioned above. http://www.capetown.gov.za/en/planningportal/pages/default.aspx
C
Cadastral
A public record, survey, or map of the value, extent, and ownership of land as a basis of taxation.
Capital gains tax
A tax levied on profit and the seller of property as an investment.
Chairman of the Body Corporate
Trustees of a Body Corporate are appointed by the owners in a Sectional Title Scheme. They act in a position of trust and manage the affairs of the scheme on behalf of the body corporate. Trustees appoint a chairman as their "leader" or manager of the group.
Chief surveyor-general's office duties in term of land survey act no. 8 of 1997
The Chief Surveyor-General shall be in charge of such CADASTRAL SURVEYING and LAND INFORMATION SERVICES in the Republic as the Minister may direct and, subject to this Act, shall:
Promote and control all matters connected with those surveys and services
Conduct such cadastral survey related research as may be required
Take charge of and preserve the records of all surveys and operations which do not form part of the records of an office of a Surveyor-General and which were carried out before the commencement of this Act or under this section
Prepare, compile and amend such maps and other documents as may be required
Supervise and control the survey and diagrammatic representation of land for purposes of registration in a deeds registry
Regulate the procedure in each Surveyor-General's office and determine the manner in which this Act shall be carried out
Any land surveyor employed in the office of the Chief Surveyor-General may, if authorized thereto by the Chief Surveyor-General, perform any specified act or task which may be performed in terms of this Act or any other law by the Chief Surveyor-General.
Cluster House
Residential units laced close together in order to maximize the usable exterior space of the surrounding area
Conveyancing Attorney
A lawyer who specializes in the business of conveying properties
Costs
All transfer costs, transfer duty, stamps, bond costs and costs incidental to transfer shall be paid by the Purchaser, who shall sign all necessary documents and settle all costs in connection with transfer immediately upon request of the Seller’s Conveyancers. Costs tables
D
Deeds Office
A copy of the title deed is kept at the Deeds Office. Anyone can check who the owner of a property is at the Deeds Office. http://www.westerncape.gov.za/eng/directories/services/11523/73721
Demolition Permit
A demolition permit is an official document from a regional government agency which allows someone to demolish a structure and clear the debris from the lot the structure is located on.
Deposit
To give as security or in part payment.
Domicilium
This is the physical address a person gives for any legal documents and notices that might have to be served. It is the place where a person is deemed to be a permanent resident and may not be a PO Box or Private Bag Address. If you have been sent a document or notice to this address, you will be deemed to have received it, even if you did in fact not receive it.
E
Electrical Installation Certificate
An Electrical Certificate has to be submitted before the local authority will connect the electricity supply. This Certificate has to be completed by a qualified electrician and has to be obtained by the seller and made available to the purchaser. Take note that the certificate is only valid should there be no additions or changes to the electrical system of the property. This inspection is carried out in compliance with the Occupational Health and Safety Act No 85 of 1993
Entire Agreement
The complete and final agreement between the parties. It is often placed at or towards the end of the contract.
Erf number
Erf numbers identify property when it is bought and sold and registered at the Deeds Office. Giving the erf number and the township in which the property is situated - for example, Erf 343 in Camps Bay - will enable anyone to identify the property.
Estate Agency Affairs Board (EAAB)
F
Fixtures
The property is sold together with all fixtures and fittings of a permanent nature
Freehold title
Freehold title means the landowner (and any of their beneficiaries) owns the property outright in perpetuity
G
Gas Compliance Certificate
Gas has become a more popular commodity due to the rising cost of electricity. Gas is a very dangerous component so the Gas Certificate was introduced for safety reasons. This Certificate ensures that all gas fittings are safe and in proper working order.
Guarantees
A formal letter issued by a Financial Institution to the Transferring Attorney (Conveyancer), undertaking to pay the purchase price (or outstanding amount) on registration of transfer of the property into the name of the buyer.
I
Insurance
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured
J
Joint Mandate
Shared (joint) mandates are given to a more than one of selected agencies
L
Levy Clearance Certificate
Issued by the Body Corporate of a Sectional Title scheme stating that the levy has been paid to a future date in respect of the property.
Lien
The right to take and hold or sell the property of a debtor as security or payment for a debt or duty
M
Mandate
An official order or commission to do something; i.e. a seller mandates a real estate agent to sell his/her house.
Mortgage bonds
A bond secured by a mortgage on one or more assets. These bonds are typically backed by real estate holdings and/or real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default
Municipality (CCC)
Municipal Rates
Municipalities are responsible for providing basic services to everyone living inside their jurisdiction. These services include:
supplying water
collecting and disposing of sewage
refuse removal
supplying electricity and gas
building and maintaining municipal roads
stormwater drainage
street lighting
municipal parks and recreation.
In order to provide these services, the Municipality charges residents rates. There are different kinds of rates, including:
property rates
water
electricity.
N
Notice Period
Should either party commit a breach of any of the terms of an agreement, and fail to remedy same within a defined number of days of being called upon, in writing, to do so, the aggrieved party shall have the right to (without prejudice to his/her rights to claim any damages that he/she may have suffered as a result of such breach) cancel the agreement by written notice to the defaulting party, or claim specific performance by the defaulting party of his/her obligation in terms of the agreement.
O
Occupation Date
The date when the buyer is entitled to physcially occupy the new property.
Offer to Purchase
It is a legally binding document signed by both the buyer and the seller, whereby the buyer agrees to buy the property from the seller, who agrees to sell the property to the buyer for a proposed purchase price and conditions on which the sale will take place.
P
Participation Quota
A participation quota is the ‘share' in the common property allocated to each section. The sectional plan includes a 'Participation Quota Schedule' that allocates a particular share to each section. Generally, the participation quota for each section is determined by the following calculation:
Floor Area of Section X 100 / Total Floor Areas of all Sections.
So, for example, if a sectional plan shows that the measured floor area of section number 1 is 94 square metres and the total floor areas of all sections is 1853 square metres, the participation quota for section 1 would be calculated as: 94 X 100/ 1853 = 5,0728%.
The participation quota allocated to a section is usually used to calculate an owner's share of the scheme's common expenses and the value of each owner's vote.
Plumbing Certificate
With rising water costs and the water shortage that our country is experiencing, as well as the fact that your home is vulnerable to major damage due to leaks and potential pipe bursts, makes this certificate one of the most valuable. The Plumbing/Water Certificate must be done by a certified plumber and guarantees that all plumbing in the property complies with the correct standards.
You should check that:
the water installation conform to the National Building Regulations
there are no defects
the water meter is registered
there is no discharge of storm water into the sewerage system?
These new regulations have made the sale of a property a bit more complicated but it enables you as buyer to rest assured that the property is in good condition and has no hidden defects or costs when it comes to plumbing, electrical, gas or even beetle infestation.
Power of Attorney
A legal document authorizing one person to act on behalf of another.
Purchase Off Plan
Buying 'off plan' means buying a property before it has been built, and basing your purchasing decision on the developer’s ‘vision’ as reflected in the artist’s impression and the architectural plans. You will be required, in most cases, to pay a deposit, sign all the contracts, and pay the balance of the purchase price once the construction has been completed.
R
Rates Clearance Certificate
Issued by the local authority stating that the rates and taxes have been paid to a future date in respect of the property.
Right of First Refusal
A contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party
Risk
All benefits and risk in the property shall pass to the Purchaser on transfer from which date the Purchaser shall be liable for all rates, taxes and/or levies which pertain to the property.
S
SARS
South African Revenue Service. http://www.sars.gov.za/Pages/default.aspx
Sale of Purchaser’s Property
This condition can allow for the marketing and sale of the purchaser’s property. Alternatively if the property it sold, the parties would generally expect simultaneous transfer
Sectional title
A Sectional Title Unit consists of a section of a building or various buildings on a piece of land Demarcated on a sectional plan drawn by a land surveyor, together with an undivided share in the common property. All the sections together with common property comprise "the Scheme"
Servitude
A right that grants use or benefits of another's property
Share block
In a share block scheme an individual owns a block of shares in the company. This block of shares is allocated to a specific part or parts of the building, the apartment, parking bay, garden and so on. Owning the block of shares entitles the individual to the permanent and exclusive use of those parts of the building. But it is the company, not the individual, that owns the immovable property, the land, buildings and improvements.
Sole Mandate
This is an agreement between the seller and the estate agent allowing the estate agent to exclusively market the property.
Special Conditions
One can add extra clauses to an Offer & Acceptance as special conditions. These conditions must be precisely worded to avoid disputes later on. All amendments and any extra conditions should be signed and dated by both parties. It is advisable to seek expert advice to ensure that the special conditions are drawn up correctly.
Special Conditions can cover a range of matters such as the need for repairs to be made to the property, to allow for a building inspection or perhaps a termite inspection. A buyer may insert a special condition that requires the Offer and Acceptance form be either accepted or rejected by the seller by a certain date.
Regardless of their type, special conditions need to be in writing.
Special Levies
If essential emergency repairs or maintenance are required within a scheme for which there are no reserves, the trustees are able to raise a special levy to finance such repairs.
This form of levy is often seen negatively by the owners and mainly comes about from deferred maintenance, lack of proper financial planning, inadequate budgeting or poor general levy collection.
Subject To
Being dependent or conditional upon something, as in subject to the sale of another property.
Suspensive Condition
Conditions written into the Offer to Purchase by either party that must be fulfilled for the agreement to become unconditional and legally binding.
T
Tenancy
Possession or occupancy of lands, buildings, or other property by title, under a lease, or on payment of rent.
Title Deed
When you buy a property, you need to get the title deed transferred into your name. This deed constitutes proof that you are the owner of the property. You will need the assistance of a conveyancer to help you transfer the Title Deed into your name.You will only become the owner of the property when the Registrar of Deeds signs the transfer. http://www.westerncape.gov.za/eng/directories/services/11523/7372
Title Deed Condition
Many Title Deeds contain detailed conditions that set out and regulate the way and extent to which a property may be used or developed by it’s owner.
Town house
A townhouse, or town house, is a type of medium-density housing in cities, usually but not necessarily terraced (row housing) or semi-detached. A modern town house is often one with a small footprint on multiple floors
Transfer Date
The date upon which the property is transferred from the seller, name transfers to the buyer’s name.
V
Validity of Offer
A contract is considered valid when two or more parties with capacity make an agreement involving valid consideration to do or to refrain from doing some lawful act. If these elements exist, the contract is valid. If one or more or these necessary elements is missing, the contract is void or voidable. In other words, it is not a true contract and therefore cannot be enforced.
Voetstoots
To sell it as it stands without any guarantees given by the seller as to the condition of the property. The seller therefore cannot be held responsible for latent or patent defects. The property is sold “as is”.
W
Warrant
The parties warrant that the information contained in the agreement, and in the personal details supplied by them, relating to them or which should reasonably be within their knowledge, is true and correct.
Withholding Tax
A tax levied on income (interest and dividends) from securities owned by a non-resident.
Z
Zoning Scheme
A zoning scheme is a legal document that records all land-use rights on properties in its area of jurisdiction. It includes regulations and restrictions on such rights and how they can be exercised. All municipalities have such a scheme, and they usually serve to manage urban growth and development, as well as conserve the natural and cultural environment within their area of jurisdiction.
