glossary
A B C D E F G H I J L M N O P R S T U V W Z
A
Abandonment - The voluntary relinquishment of rights of ownership or interest by failure to use the property, couples with an intent to abandon or give up interest
Absentee Owner – an owner of property who does not occupy the said property
Acquisition Costs – costs of acquiring ownership title of a property other than the purchase price, conveyancing fees, insurance, lender fees, etcAddendum – is a supplementary or separately attached agreement to an original sale contract which specifies agreed terms which are in the attached contract.
Administration Fees – is a monthly charge which the bank charges bond holders to manage the home loan.Ad Valorem – means “according to value” and is a method of taxation using the value of the thing taxed to determine the amount of tax. Taxes can either be “Ad valorem” or “specific”.
Affidavit – is a written statement or declaration, sworn to before an officer who has authority to sign under oathAffordable Housing – also known as ‘inclusionary Housing’ which essentially is low – cost social housing aimed at the lower income sector of the market.
Agreement of Loan – is the contract which is drawn up between the bank and the owner until a home loan is granted. Details include interest rate, bank charges, insurance and monthly instalments.Agreement of Sale – is also known as the Offer to Purchase or Deed of Sale. It is a legal document which specifies the Agreement of Sale such as buyer and seller details, purchase price, conditions of sale. It is ultimately a legal and binding agreement of all verbal discussions between buyer and seller.
A-Grade Office Space – is essentially high quality office space that has air – conditioning, parking etc and is generally not older than 15 years or has had a major renovation. The rentals are near the top of the rental range.Alienate – ‘alienate’ means to sell, exchange or donate as related to immovable property.
Amortisation – is payment in debt in equal periodic instalments of principal and interest.Anchor Tenant – is usually the largest and most reliable tenant in a shopping centre. The strength of the anchor tenant normally draws the shoppers, get a favourable lease and greatly affects the availability of financing for the shopping centre.
Ante Nuptial Contract – is an agreement made by man and woman prior to getting married, setting forth the rights both during and after the marriage and in the event of death or divorce. The parties will be married out of community of property.Approaches to Value – is different methods used to estimate the value gathering of a property. Some of the approaches include, cost, comparison and income approach.
Arbitration – is the procedure whereby parties to a dispute appoint an arbitrator to settle the dispute. The arbitrator’s decision is final and the parties bound by it. Arbitration Clause – is a clause in a lease calling for the decision of a third party regarding disputes over future rents based on negotiation.Arbitration Tribunal – is the Tribunal which is an independent body that has been appointed to settle a rental or purchase dispute by way of arbitration.
Area – is the surface space of in square metres of land and/or building which can be work area, living area and play area.Asking Price – is the price at which the seller is offering property for sale. The eventual selling price may be less after negotiation with a buyer.
Assessment Fees – is also known as inspection or valuation fees. If the amount that the bank will charge an owner to make an assessment of a property’s condition and value prior to getting finance.Assessed value – is the value placed upon a property by the municipality for property tax purposes payable by the owner.
Asset – is the capital item such as the physical property that an individual or company has invested in or who owns which can be used for the payment of debts.Aesthetic Value – is the value of a property attributable to the beauty of the improvements or surroundings.
Attorney Allocation – is when banks appoint a specific attorney form who are then allocated to handle transfer registrations on behalf of the bank.Auction – is a method of selling a property by public sale to a person/company who makes the highest bid.
Auditor – a person registered as a public accountant and whose function is to audit property figures. Authority Forms – is a form signed by the borrower to authorise payments of the proceeds of a loan when the transfer of the property takes place. Guarantees are issued and authority forms are signed by the borrower before any guarantees can be furnished.