Real Estate Glossary – Buying & Selling Property in Sebokeng
Appraisal
A professional estimation of a property’s value, usually conducted by an estate agent or certified valuator. Appraisals help sellers determine a fair listing price.
Bond (Home Loan)
A loan from a bank or financial institution used to purchase a property. The buyer repays it monthly with interest.
Bond Approval
Official confirmation from a bank that a buyer qualifies for a home loan. This is a key step in finalizing a property purchase.
Bond Originator
A specialist who submits home-loan applications to multiple banks on behalf of a buyer to secure the best interest rate.
Buyer’s Market
A market condition where there are more properties for sale than buyers. Prices tend to be more competitive, benefiting buyers.
Conveyancer
A licensed attorney responsible for handling all legal documentation and transferring ownership of a property from seller to buyer.
Deed of Sale
A legally binding contract between buyer and seller that outlines the terms and conditions of the property transaction.
Deposit
An upfront payment made by the buyer when securing a property. Usually 5–20% of the purchase price, depending on the agreement.
Equity
The difference between the market value of a property and the outstanding amount on the home loan. As the loan decreases or property value increases, equity grows.
Estate Agent / Realtor
A licensed professional who assists with marketing, buying, and selling property. Agents guide clients through pricing, viewings, negotiations, and paperwork.
FICA Compliance
A legal requirement in South Africa where both buyer and seller must provide proof of address and identification before a property transaction is processed.
Interest Rate
The percentage charged by a bank on the outstanding balance of a home loan. Rates may be fixed or variable.
Market Value
The estimated price that a property is expected to sell for based on current market conditions, location, and comparable sales in Sebokeng.
Occupation Date
The date the buyer is allowed to move into the property—agreed upon by both buyer and seller in the Deed of Sale.
Offer to Purchase (OTP)
A formal written offer by a buyer to purchase a property. Once signed by both parties, it becomes a binding contract.
Registration
The final step in the transfer process where the property is officially registered in the buyer’s name at the Deeds Office.
Sectional Title
Ownership of a unit in a complex (e.g., townhouse or apartment), where owners share communal areas such as gardens or parking lots.
Selling Mandate
A contract between a property owner and an estate agent outlining the terms of the agent’s right to market and sell the property.
- Open Mandate: Multiple agents may market the property.
- Sole Mandate: Only one agency may handle the sale for a set period.
Stamp Duty / Transfer Duty
A tax paid by the buyer to the government when purchasing a property. Properties under a certain value may be exempt.
Title Deed
The official legal document proving ownership of a property.
Transfer Costs
Fees paid by the buyer for legal work, registration, and transfer of a property into their name.
Valuation
A bank-conducted assessment of a property to ensure it matches the value of the requested home loan amount.