The most common Property terms used in the industry: |
| Mortgagee |
The person or financial institution lending money
to someone else against registration of a mortgage bond
over the latter’s property. The mortagee then
holds a mortgage bond over the property.
Also referred to as a bondholder. |
| Mortgagor |
| The person who borrows money and who allows registration
of a mortgage bond over his property to secure repayment
of the loan. |
| Nominee |
| The person nominated or appointed by another for a
specific purpose. Sale agreements are sometimes drawn
up on the basis that the property is sold to the purchaser
‘or his nominee’. |
| Null
and Void |
| Without any legal effect. An agreement of sale or
lease which is null and void is not valid in any respect
and cannot be enforced by either party. |
| Occupational
Interest |
| A purchaser who has taken occupation of a property
before it is registered in his name, is usually required
by the seller to pay a monthly amount for such occupation.
This amount is referred to as occupational interest
(sometimes called occupational rent). |
| Offeree |
| Person to whom an offer is made. In sale transactions,
a purchaser usually makes an offer to a seller of a
property. The seller is then the offeree, and the purchaser
the offeror. See also ‘Offeror”. |
| Offeror |
| Person who makes an offer. In sale transactions, the
purchaser is usually the offeror i.e. the person who
makes an offer to the seller of a property (the offeree)
to buy the Property. See also ‘Offeree’. |
| Option |
| An offer made to a person, coupled with an undertaking
by the person making the offer (the offeror) not to
revoke his offer for a specified period. The person
to whom the offer is made (the offeree) is then said
to have an option. The option is exercised when the
offer is accepted timeously. An option falls away if
the offer is not accepted by the offeree before the
expiry date. |
| Partnership |
A contract between two or more persons (maximum 20)
to carry on business in common.
A partnership is not a legal entity as such, and terminates
if one partner retires or dies. Partners are personally
liable for partnership debts. |
| Person |
| A natural person or a legal person (such as a company,
close corporation, local authority, etc). |
| Real
Right |
| A right over or in respect of property. Real Rights
over or in respect of immovable property are registered
against the title deed of the property. |
| Registered
Right |
A right over property registered in a deeds office
against the title deed of the property.
The purchaser of immovable property is bound by the
rights registered over the property whether or not he
knew of their existence at the time of the sale. |
| Registation
Against Title Deeds |
| A right is registered against the title deed of a
property when details concerning such right are stipulated
on the title deed by the Registrar of Deeds in terms
of the Deeds Registries Act 47 of 1937. |
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