Saturday 18 Nov 2017
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Guide to Property Termonology

Guide to Property Termonology

 

 

A

ddendum

A supplementary agreement to an original sales contract covering points agreed to afterwards.  It is a separate agreement in its own right and, if it contradicts the original in any way, it is presumed to overrule it.

 

 

A

greement of Sale

The basic contract of sale and purchase between a willing seller and buyer.  No matter what the parties have agreed to verbally no contract exists until an agreement of sale is completed and signed by both parties.

 

 

B

reach Clause

A condition in a contract obliging a seller to give a defaulting buyer written notice to remedy his breach of contract within a specific  period (usually seven days) before he can cancel the sale.

 

 

C

onditions of Title

These are the restrictive conditions limiting an owner’s rights which are recorded on his title deed to a property.  They cover matters such as mineral right reservations, servitudes and building limitations.

 

 

F

ixtures and Fittings

these are attachments to a home which are deemed to permanently belong to it.  They include light fittings, curtain rails, TV aerials and eye-level ovens and may not be removed by the seller when he vacates the property.

 

 

G

uarantees

Written undertakings issued by registered banks guaranteeing payment of part or all of the purchase price on registration of transfer.  They are furnished to the transferring attorney.

 

 

N

ull and void

A legal expression emphasizing a final cancellation or lapse of a sale agreement.  It puts both parties in the position they were in before the agreement was signed and leaves each without obligations to the other.

 

 

P

rior occupation

A buyer’s right to take personal occupation of a property before transfer takes place.  A rental agreed to in advance between the parties, will be payable by the buyer until registration of transfer.

 

 

O

ffer to purchase

A document setting out the proposed purchase price and conditions on which a buyer is prepared to purchase a property.  It will be submitted to the seller and, once he signs, it becomes a valid sale agreement.

 

 

P

ossession

A stronger right than occupation which usually only passes on registration.  It entitles the buyer to receive all rentals paid by the existing tenants while obliging him to pay all assessment rates.

 

 

S

ubject-to Sale

An expression used by estate agents to describe a sale of contract  which will only become unconditional between the parties if and when the buyer sells his own property.  A time period of sixty days is usually allowed.

 

 

S

uspensive Condition

A provision in a contract suspending its operation until a specific condition is fulfilled.  A clause stating that the sale will only be confirmed if a mortgage loan is granted is a typical suspensive condition.

 

 

V

oetstoots

A Dutch expression meaning that a property is bought “as is”, with all its patent and latent defects.  A seller can still be held liable for the latent defects known to him which he fails to disclose to the buyer.


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