The only real estate glossary you'll need when buying or selling property
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Buying or selling property can be an overwhelming process, especially if you're doing it for the first time. Jawitz Properties simplifies the process by providing a real guide to some of the words and phrases you'll come across in your real estate journey. Discover the ins and outs of everything from access bonds to suspensive conditions here.
Access bond
An access bond is a home loan that allows you to withdraw any extra money that you've paid into your bond when you need it. Once your home loan has been granted, you can apply to the bank to have the access facility activated. Once this has been activated, your home loan can serve as your savings account. Over and above this, since the interest rate on your home loan is likely to be far more favourable than what a bank would offer you on a short-term loan or for car finance, your bond becomes a smart way to buy other big-ticket items.
Affordability
Affordability relates to how much you can afford to spend on your home loan each month and how much the banks will be likely to grant you. By inputting your gross monthly income and expenses into the Jawitz bond affordability calculator, you'll get an immediate answer as to what you can afford.
Home loan application
A home loan application is your request to the bank to finance your home purchase. The best way to do this is through a bond originator such as ooba, who will apply to all the banks on your behalf and leverage their positive relationships to assist you in getting the best possible interest rate offer on your home loan.
Market value assessment
A market value assessment is done by a property practitioner to determine the price at which you should put your property on the market. This involves far more than coming to your home and making some educated guesses. To provide you with the best possible market value assessment, your property practitioner will need to know your area and your specific neighbourhood well. They will also look at market trends and the selling prices of properties that have recently been sold in your area.
Occupational rent
When you buy a new home, you may want to move into it before the date of transfer. If this is the case, you may be able to negotiate an occupational rent agreement with the seller. This will form part of the offer to purchase agreement and will involve paying an agreed monthly rental amount to the current owner of your future home.
Offer to purchase
An offer to purchase is the first document you sign when you've found a home that you would like to make yours. It will include the amount of money that you are offering to pay for the property. It's important to understand that this is a legally binding document, so make sure the property meets all your needs before you sign on the dotted line.
Preapproval
Getting bond preapproval through ooba is the next step to take after you've crunched the numbers with our affordability calculator. This gives you an official assessment of what you can afford based on your income and expenses. Being preapproved can make your offer to purchase more promising in the eyes of a property seller.
Property Practitioners Regulatory Authority
The Property Practitioners Regulatory Authority is responsible for regulating, maintaining and promoting the conduct of property practitioners. Every property practitioner (formerly known as an estate agent) is required to be registered with the PPRA. You can quickly and easily check the status of a property practitioner who you're thinking of working with on the PPRA's website.
Sectional title
Sectional title refers to the separate ownership of a unit within a block of flats, complex or estate. As the owner of a unit in a sectional title, you become part of a body corporate that makes decisions about the complex. In most sectional titles, you'll have to follow various rules which are designed to ensure harmonious living. You'll also need to pay monthly levies which pay for property maintenance, staff and other expenses.
Suspensive condition
A suspensive condition is a clause in a contract that stipulates that something has to happen in order for the contract to be legally binding. In a nutshell, it introduces an "if" to the scenario. Typically, a suspensive condition in a real estate transaction will relate to finance. The deal will become binding if the buyer is granted a home loan or if they sell another property that they already own.
If you need help with buying or selling property, the Jawitz Properties team has you covered. Trust us to help you dot every i and cross every t in your next real estate transaction. Contact us for more information.
Author: Jawitz Properties
