The most common Property terms used in the industry: |
| Franchise |
| Some estate agencies carry on business in terms of
a franchise, ie. they have an agreement with another
party (usually a well- known company) to carry on business
in a particular area under the latter’s name. |
| Huur
Gaat Voor Koop |
| ‘Lease goes before sale’. Where leased
premises are sold before the lease has expired, the
tenant may in terms of the huur gaat voor koop rule
remain in occupation of the premises until the lease
expires. In the case of a long lease (ie a lease for
a period of 10 years or longer), this applies only if
the lease is in writing and registered against the title
deed of the leased premises, or if the purchaser at
the time of conclusion of the sale knew that the lease
was a long lease. |
| Hypothec |
Right of security over movables. In the case of a
lease the lessor has hypothec (right of security)
over the lessee’s movable goods on the leased
premises in order to secure payment of rent. |
| Immovable
Property |
| Land and everything permanently attached to it. |
| Improper
Conduct |
| See ‘Conduct deserving of sanction’. |
| Industrial
Property |
| Property used for industrial purposes, eg. factory
premises. |
| Insolvent |
| A person who is unable to pay his debts and whose
estate is declared insolvent in terms of the Insolvency
Act 24 of 1936. See also ‘Liquidation’ below. |
| Installment
Sale |
| Sale where the purchaser pays the purchase price (or
a portion thereof) to the seller in installments (usually
monthly). See ‘Contract (2)'. |
| Lien |
| Right of retention. Where a person has improved someone
else’s property or has incurred certain expenses
in respect thereof he may retain possession of such
property until the debt due to him has been discharged.
The right to retain possession is called a lien. |
| Limited
Real Right |
| A registered right over someone else’s property.
Servitudes and mortgage bonds are limited real rights. |
| Liquidation |
| The legal process leading to the dissolution of a
company or close corporation. A company or close corporation
declared insolvent is said to be ‘in liquidation’.
A company or close corporation can, however, also be
liquidated (wound-up) on grounds other than insolvency. |
| Long
Lease |
| A lease for a period of not less than 10 years; or
for the natural life of the lessee or any other mentioned
in the lease; or renewable from time to time indefinitely
at the will of the lessee, or for periods that, Together
with the first period of the lease, Amount to not less
than 10 years. |
| Mandate |
| An instruction or authority given to an estate agent
to render a particular estate agency service for a client
(the person conferring the mandate). |
| Market
Value |
| The price which a willing buyer will pay, to willing
seller, for a property on a specific date. |
| Mortgage
Bond |
| A limited real right held by a moneylender (such as
a financial institution) over the Immovable property
of a borrowed to secure repayment of a loan owed by
the borrower to the moneylender. A mortgage bond is
registered against the title deed of a property. |
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