The most common Property terms used in the industry: |
| Resolutive
Condition |
A clause in an agreement of sale or lease which has
the effect that the agreement will terminate on the
occurrence of an event specified in the clause. Contrast
this with a suspensive condition: see below. A typical
example of a resolutive condition is a condition in
an agreement of sale of a
proposed sectional title unit stating that the agreement
will terminate if the sectional title plan is not registered
before or on a certain date. |
| Restrictive
Conditions of Title |
| Conditions stipulated in the title deed of a property
prohibiting the building of certain improvements on
the property or limiting the use to which the property
may be put. A typical example is a condition in a title
deed starting that a house must have a tile roof. |
| Right
of Pre-emption |
A contractual right entitling a person to make the
first offer to purchase a particular property.
Also known as a right of first refusal. Lease agreements
sometimes provide that, should the lessor wish to sell
the property, the lessee has a right of pre-emption
to purchase it. |
| Servitude |
| A registered right which a person has over the immovable
property of another. It usually entitles the holder
of the servitude to do something on the property. A
common example is a registered right of way to travel
over property owned by another. |
| Subdivision |
| When land is subdivided, it is divided into two or
more portions. A specific legal and technical procedure
must be followed. |
| Suspensive
Condition |
| A clause in agreement of sale or lease in terms of
which the agreement will become enforceable only if
the event stipulated in the clause occurs. A typical
example is a clause in an agreement is subject to the
suspensive condition that the purchaser obtains a loan
from financial institution before or on a certain date. |
| Title
Deed |
A document filed in a deeds office containing details
of a property and its owner. A title deed is proof of
a person’s ownership of a defined property; if
other persons have rights over the property (for
Example where a financial institution holds a mortgage
bond over the land), details thereof are also endorsed
(recorder) on the title deed. |
| Trust
Account |
A bank account in which the account holder holds
money in trust for another person until the occurrence
of a certain event. The money in such an account is
referred to as trust money.
Every estate agency business must have a trust account
which must be auditor every year. |
| Unrehabilitated
Insolvent |
An insolvent whose estate is controlled in terms of
the Insolvency Act 24 of 1936.
Generally stated, an insolvent automatically becomes
rehabilitated (ie. ceases to be an insolvent)
10 years after he has been declared insolvent. |
| Voetstoots |
‘As is’. If a voetstoot clause is included
in an agreement of sale of immovable property, it means
that the seller cannot be held liable for latent defects
in the property, ie. defects which are not visible
upon a reasonable inspection of the property, such as
a leaking roof. A voetstoots clause does not, however,
protect a seller who knows about a latent defect but
fails to disclose this in order to defraud
the purchaser. |
| Zoning |
| Zoning limits the purpose for which a property may
be used, eg. residential, commercial, industrial, educational,
etc. |
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