Legal Glossary
A plain-language guide to common property law and conveyancing terms used in South Africa.
Accrual System
A provision in an antenuptial contract that provides for sharing of the growth in each spouse’s estate upon dissolution of the marriage.
Antenuptial Contract (ANC)
A contract entered into before marriage that regulates the matrimonial property regime of the spouses. It must be executed before a notary and registered at the Deeds Office.
Body Corporate
The entity responsible for managing the common property in a sectional title scheme. All unit owners are automatically members.
Bond (Mortgage Bond)
A legal document registered at the Deeds Office that pledges immovable property as security for a loan, typically a home loan from a bank.
Bond Cancellation
The legal process of removing a registered mortgage bond from the title deed of a property, usually when the property is sold or the loan is paid off.
Bond Cancellation Figures
The amount a bond-holder bank requires to cancel an existing mortgage bond, including the outstanding capital, accrued interest, and any early-settlement penalty. Figures are usually only valid for a limited period.
Caveat
A formal notice entered in the Deeds Office records warning that a particular party has an interest in a property, preventing certain transactions from proceeding without notice.
Community of Property
The default matrimonial property regime in South Africa when no antenuptial contract is signed. All assets and liabilities form part of a single joint estate.
Compliance Certificate
A certificate confirming that a property’s installations (electrical, plumbing, gas, beetle, electric fence) meet the required safety standards. Required before transfer.
Conveyancer
An attorney who has passed additional examinations and been admitted to practise as a conveyancer, specialising in the transfer of immovable property.
Deed of Transfer
The legal document registered at the Deeds Office that transfers ownership of immovable property from the seller to the buyer.
Deeds Office
The government office responsible for the registration of rights in immovable property in South Africa. All transfers, bonds, and servitudes are registered here.
Encumbrance
Any right or restriction registered against a property that may affect its value or use, such as a mortgage bond, servitude, or restrictive condition.
Erf
A surveyed plot of land in a township or suburb, identified by an erf number. The Afrikaans equivalent of a "stand" or "plot".
Estate Duty Abatement
Section 4A of the Estate Duty Act exempts the first R3.5 million of a deceased estate from estate duty. The abatement can be rolled over to a surviving spouse’s estate where the first-dying spouse did not use it.
Executor's Fee
The fee payable to the executor of a deceased estate. The statutory tariff is 3.5% of the gross value of the assets plus 6% of the income collected during administration, plus VAT.
FICA (Financial Intelligence Centre Act)
Legislation requiring attorneys and other accountable institutions to verify the identity and address of their clients and report suspicious transactions.
Fidelity Fund Certificate
Issued annually by the Legal Practitioners' Fidelity Fund, this certificate confirms an attorney is entitled to practise and to handle trust monies. The Fund provides cover to clients in the event of theft of trust funds by a practitioner, subject to the Fund’s rules.
Freehold (Full Title)
A form of property ownership where the owner holds full title to both the land and the buildings on it, as opposed to sectional title or leasehold.
Guarantee (Bank Guarantee)
A written undertaking by a bank to pay the purchase price to the seller’s conveyancer upon registration of the transfer and bond at the Deeds Office.
Levy
A monthly contribution paid by sectional title unit owners to the body corporate to cover the maintenance and management of common property.
Lodgement
The act of submitting documents at the Deeds Office for examination and registration. Transfer and bond documents are typically lodged simultaneously.
Notary Public
An attorney who has passed additional examinations and been admitted to practise as a notary, authorised to execute notarial deeds and authenticate documents.
Offer to Purchase (OTP)
A written agreement between buyer and seller setting out the terms and conditions of a property sale. Once signed by both parties, it becomes a binding contract.
PAIA
The Promotion of Access to Information Act 2 of 2000. Every private body (including a law firm) must maintain a PAIA manual setting out the records it holds and how the public can request access to them.
POPIA
The Protection of Personal Information Act 4 of 2013, regulating how responsible parties (including attorneys) may process personal information in South Africa.
Power of Attorney
A legal document authorising one person to act on behalf of another. In conveyancing, it allows the conveyancer to sign transfer documents on behalf of a party.
Rates Clearance Certificate
A certificate issued by the local municipality confirming that all rates and taxes on a property are paid up. Required before a transfer can be registered.
Section 118 Clearance Certificate
A certificate issued by the municipality under section 118 of the Municipal Systems Act confirming that all rates, taxes and service charges owed on the property for the two years preceding transfer have been paid. The Registrar of Deeds cannot register a transfer without it.
Sectional Title
A form of property ownership in which the owner holds title to a specific section (unit) of a building, together with an undivided share in the common property.
Servitude
A registered right that one property (the dominant tenement) has over another property (the servient tenement), such as a right of way or water servitude.
Suspensive Condition
A condition in an offer to purchase that must be fulfilled before the sale becomes binding — most commonly, the buyer obtaining a bond within a specified period.
Title Deed
The registered document that serves as proof of ownership of immovable property. The original is kept at the Deeds Office.
Transfer Duty
A tax imposed by SARS on the acquisition of immovable property in South Africa. It is calculated on a sliding scale based on the value of the property.
Trust
A legal arrangement in which a trustee holds and manages property on behalf of beneficiaries. Trusts are commonly used in South Africa for estate planning and asset protection.
Voetstoots
An Afrikaans term meaning "as is". When property is sold voetstoots, the buyer accepts the property with all its defects, whether visible or hidden, subject to the Consumer Protection Act.
Zoning
The classification of land by the local municipality that determines how the property may be used (residential, commercial, industrial, agricultural, etc.).
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