Property Questions (common FAQ)
Category Property Investment
Q: What is a Title Deed?
A: A legal document used to prove ownership of property. A typical title deed has a description of the property so that it cannot be confused with another property, along with the name of the person who legally holds the property
Q: What is Rezoning?
A: When a property owner wants to use land/property in a way that is not permitted by the zoning of his/her property, the owner must request to rezone the property to a classification which permits the desired use. A rezoning is a legislative action which is considered through a complex process.
Q: What is a Conveyancer?
A: A conveyancer deals with all matters related to property law and deeds office transactions. Once property has been sold, a conveyancer will be required to transfer the property from the Seller to the Purchaser and if necessary register a mortgage bond so that the Purchaser can pay for the property. The conveyancer will draw up the documents that are needed to transfer a property or property right from one person to another and will make sure that the laws related to property transfers are complied with. The conveyancer will ensure that the agreement of sale is followed by both parties. Conveyancing can only be carried out by a licensed attorney that has passed the National Conveyancing Examination. Governed by the Law Society of SA.
Q: What is a sole mandate?
A: A Sole Mandate is a contractual agreement between the Seller and the Estate Agent detailing and giving exclusive right to that Estate Agent to market the property. This means that no other Estate Agent unless stipulated can market the property for the duration of the Sole Mandate.
Q: What is the difference between a latent and patent defect?
A: A latent defect is one that would not be easily discovered with the naked eye.
Generally speaking, these defects would only be discovered by an expert and not during a normal inspection eg Rusted internal pipes, faulty geyser and pool pumps and leaking roofs.
A Patent defect is one that should be easily identified upon inspection of the property.
Examples are cracks, broken gutters and windows etc.
Q: What is a Bond Originator?
A: A Bond Originator is a person or business that facilitates the process of applying for property finance for property buyers. They collate and present the necessary paperwork based on your current financial standing in application to the various finance institutions and attempt to secure the best possible rate for you.
Q: What is Homeowners insurance?
A: Homeowners' insurance provides cover for any damage to the structure of your home that is caused, for example, by a fire, a storm, snow or water. It generally also provides cover for a burst geyser and accidental glass damage. You should carefully consult your policy to confirm what your specific insurance company covers.
Q: What is an Instalment Sale?
A: An Instalment Sale Agreement (ISA) is contract agreement between seller and purchaser where the seller allows purchaser to pay off the property in instalments therefore not requiring a bond to be registered. The sellers attorney registers the ISA at the Deeds Office against the Title Deed over the property. Importantly the Title Deed remains in the sellers name until such time as full amount agreed has been paid as well as transfer and attorney costs at end of the term.
Q: What is Escalation Rate?
A: In commercial property leases, you will see reference made to escalation rate.
This is the rate, usually indicated by means of a percentage, by which the monthly rental escalates on a yearly basis.
Author: Cesar Alexandre