When you are investing in property, whether you are doing it solo or with AIN, you should be aware of the terminology of the role-players in the processes. Allow us to help you out here…
The Conveyancer is an attorney who passed an additional exam to specialise in property law
An OTP or offer to purchase is the document where the purchaser makes an offer in writing that is fully signed to the seller to purchase the property. It contains all the conditions related to the purchase.
A purchase agreement is the document where, once a seller accepts the OTP and signs the offer, becomes the purchase agreement. It might also be referred to as the deed of sale or the contract.
An estate agent is the person who accepted the mandate and is then instructed and authorised to market a property, advising on all aspects of the transaction to facilitate the successful sale of the property.
The estate agency is the business that the estate agent works for.
A candidate estate agent is a person who is not yet fully qualified as an estate agent but must operate under the supervision of a fully qualified estate agent.
FFC or Fidelity Fund Certificate is a certificate issued by the PPRA or Property Practitioners Regulatory Authority, to every estate agent and estate agency, which certifies they comply with all legal and training requirements set by the PPRA. Each and every estate agent and agency have to hold a valid FFC. As a purchaser or seller, you have the right to request the agent to verify his/her FFC.
A typical agreement of sale of immovable property contains a rouwkoop clause. Rouwkoop is an amount payable by a party who wishes to withdraw from the agreement of sale.
The rouwkoop clause must be distinguished from the penalty clause which entails that a party, in most cases the purchaser in a property transaction, who is in default of obligations imposed upon him, shall forfeit any amount paid in respect of that transaction as damages.
Take note, that in terms of the Conventional Penalties Act and case law, the forfeiture of a deposit as a penalty, or any amount already paid in respect of a transaction, cannot be a random amount, but should represent the damages actually suffered by the seller.
