Dunbar Property Group

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Balance Sheet
An accounting document that sets out the financial position of a private individual, company, CC or trust at a specific date, detailing assets, liabilities and net worth.

A financial institution registered in terms of the Banks Act 94 of 1990 to offer consumers financial services such as bank accounts and loans.

Basic Rental
Called base rental in the US. A set amount used as a minimum rent in a lease which also employs a percentage of turnover or other allocation for additional rent.
Related Topic: Escalation Rate, Gross Lease, Huur Gaat Voor Koop, Lease, Lease with Option to Purchase, Leasehold, Long Lease, Natural Vacancy Rate, Net Lease, Notarial Deed of Lease, Occupation, Percentage Lease, Renewal Option, Rental Types, Rent-Free Period, Resolutive Condition, Right of Pre-Emption, Sale & Leaseback, Triple Net Lease, Turnover Rental.

The recipient of specific benefits or proceeds from a trust.
Related Topic: Deed of Trust, Inter Vivos Trust, Investment Trust, Trust, Trustee.

Body Corporate
The controlling body of a sectional title scheme represented by the aggregate of all owners, who together own the common property.

Bona Fide
In good faith.

Also called home loan or mortgage loan. A loan made to an owner of a property where the property is the security for the loan. The bond is registered in the Deeds Office against the title deed of the property. This establishes the right of the lender to have first call on the money realised on sale of the property. The mortgagee (lender) can foreclose on the mortgagor the (borrower) if he/she defaults on debt or repayment, and force the sale of property.
Related Topic: Access Bond, Loan Agreement.

Bond Assurance
Also known as home loan insurance or mortgage protection insurance taken out on the life of the borrower in the bank’s favour to cover the amount owing n the home loan in the event of death or disability, as an alternative for life assurance.
Related Topic: Life Insurance.

Bond Costs
The bond costs include conveyancing (attorney’s) fees and VAT, as well as property inspection fees. The buyer must pay these fees to the registering or bond attorney when the bond is registered. The conveyancing fees are calculated according to a sliding scale based on the amount of the bond registered.
Related Topic: Acquisition Costs.

Bond Originator
An independent company which assists homebuyers in applying for a home loan or building loan, approaching all the banks on the homebuyer’s behalf, free of charge.

Bond Term
The repayment period of the mortgage or home loan, normally 20 or 30 years.

Book Value
The value of an asset as contained in the financial statements of an entity which incorporates the original cost of the asset plus additions to value less any depreciation.

The upswing in a cycle, whether a business, property or investment cycle, which signifies growing demand , increasing investments, rising prices and high confidence levels.

Breach Clause
A condition in a contract which obliges one party to a contract to give the defaulting party written notice to remedy his breach of contract within a specific period (usually 7 days) before he can summarily cancel the contract.

Breach of Contract
A breach of contract occurs when one of the parties to a contract fails to keep to the terms and conditions of the agreement.

Breakeven Point
The moment in time when the income from the property reaches a level where it equals the expenses related to that property.

Bridging Finance
A short-term loan for an amount a person is going to receive at the end of a period of time while a transaction in progress is concluded, such as the proceeds from a property sale while registration is taking place.

Occurs when the market demand pushes beyond the usual fundamentals.

Building Construction
The construction of buildings like houses, office blocks, factories, shopping centres, schools, hospitals.
Related Topic: Civil Construction.

Building Cost
The amount of money needed to construct a building, usually measured by the Quantity Surveyor.

Building Loan
A loan granted to a person who buys or owns a vacant plot of land where such a loan will be applied to the construction costs associated with the building of a structure on the land.

The market value of office and shopping-centre land is generally expressed as the value per bulk square metre. Bulk square metres refer to the gross building area (GBA) of a building. According to The Sapoa Method for Measuring Floor Areas in Commercial and Industrial Buildings, GBA covers: “The entire building area, but it excludes patios, plant boxes, sunscreening, escape stairs, machine rooms, parking (basements or above ground), lift motor rooms, service rooms, caretakers’ flats, etc. GBA is mainly used by planning consultants in order to plan and execute a building in accordance with the permissible Floor Area Ratio (F.A.R) as derived from the zoning of the property. GBA is fixed for the life of the building but it should be noted that different local authorities may interpret the National Building Regulations which regulated the F.A.R definition in a slightly different manner.”

Bundle of Rights
Refers to all rights that accrue to the owner of a specific property and specifically include the right to possession, control, exclusion, enjoyment and the right of disposition.

Buyer's Market
Market conditions that favour buyers. For example, when there are more sellers than buyers in the market, sellers may be forced to lower their prices in order to sell their properties.

Buying a property to be rented out to generate passive income.

Rules and regulations which govern land use and application in a specific area and include restrictions as to what an owner or tenant can and can’t do with or on a property. For example, municipal by-laws may prohibit certain activities on a property or a Body Corporate may prohibit animals within the complex.

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