The most common Property terms used in the industry: |
| Code
of Conduct |
| A set of ethical rules drawn up by the Estate Agency
Affairs Board to regulate estate agents’ ethical
conduct. The code is enforceable by law through disciplinary
committees appointed by the Board. |
| Commercial
Property |
| A property used for business or office purpose, not
for residential purpose. |
| Commission |
| Remuneration paid to an estate agent by his client. |
| Common
law |
| The law which applies automatically unless excluded
or amended by legislation or in terms of an agreement
concluded between the parties to the agreement. The
South African common law is the Roman Dutch Law. |
| Company |
| A business entity registered in terms of the Companies
Act 61 of 1973. A company may enter into agreements
of sale or lease in its own name. |
| Conduct
Deserving of Sanction |
Unethical or improper conduct on the part of an estate
agent is referred to as ‘conduct deserving of
sanction’. The grounds constituting conduct deserving
of sanction by an estate agent are set out in the Estste
Agency Affairs Act 112 of 1976. Disciplinary Steps can
be taken by the Estate Agency
Affairs Board against an Estate agent found Guilty of
conduct deserving of sanction. |
| Contract |
(1) A legally enforceable agreement, for Example an
of lease or sale.
(2) In terms of the Alienation of Land Act 68 of 1981,
a ‘contract’ refers to a sale land on instalments
where the purchase price is payable by the purchaser
to the seller in more than two instalments over a period
exceeding one year. |
| Conveyancer |
| An attorney who qualified to attend to deeds office
transactions, such as the transfer of a property from
a seller to a purchaser, or the registration of mortgage
bonds and servitudes. |
| Cooling
Off Right |
In terms of the Alienatin of Land Act 68 of 1981
certain purchasers of immovable property have
the right to revoke an offer to purchase or terminate
a sale agreement within 5 days after the offer or sale
agreement was signed by the purchaser. This is generally
referred to a ‘cooling off right’. The right
to cool off applies only in respect of properties which
are used (or intended to be used) mainly for residential
purpose an only if the purchase price is R250 000 or
less (a higher amount may be
prescribed by the Minister of Trade and Industry from
time to time). The right does not apply in
certain instances, for example where the buyer is a
company, close corporation or a trust. |
| Defects |
| A patent defect is a defect which clearly visible.
For the meaning of latent defects, see ‘Voetstoots’. |
| Domicile |
| The place where a person is deemed to be permanenty
resident. |
| Endorsement |
| Endorsement on a title deed: a note made on the title
deed of a property by the Registrar of Deeds. |
| Exporiation |
| Procedure in terms of which a property is taken over
(usually by local authorities or the State) for specific
purposes in the public interest. Compensation must be
paid as Provided for in terms of the Expropriation Act
63 of 1975. |
| Finance |
| Money. Loan finance: money borrowed to pay for the
acquisition of a property. |
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