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Cancellation Attorney
The cancellation attorney attends to the cancellation of the bond for the bank and is a conveyancing attorney appointed by the financial institution that holds the seller’s bond. The fees for the cancellation attorney will be included in the seller’s bond cancellation fees.
Related Topic: Attorney, Registering Attorney (Bond), Transferring Attorney.

Capital Gain
The increase in the capital value of an asset over time which is realised when the asset is disposed of.

Capital Gains Tax (CGT)
The tax payable on the capital gains made on a property when the property is sold. Certain exceptions apply to a primary residence.

Capitalisation Rate
A ratio representing the relationship between the future cash flow that an asset can generate and its current market value, normally determined by estimating the present value of the future cash f lows. It is the rate at which the future cash flow of the building is capitalised to derive market value of the property taking into account the amounts, security and timing of the future income.
Related Topic: Income Capitalisation Approach, Net Operating Income (NOI), Yield (Initial).

Capped Rate
The interest rate on a home loan can be capped at a certain rate and the interest on the home loan will not exceed the capped rate regardless of interest rate increases. However, if the interest rates drop below the capped rate, the borrower will still pay the higher capped rate.
Related Topic: Interest Rate, Interest Rate Cap.

Cash Flow
Is a schedule or net amount of the cash inflows generated by an asset less all cash outf lows pertaining to the same asset.

Cash-on-Cash Return
Is a ratio expressing the total amount of cash generated by an asset compared to the amount of cash invested to acquire such an asset.

Caveat Emptor
Is a ratio expressing the total amount of cash generated by an asset compared to the amount of cash invested to acquire such an asset.
Related Topic: Return on Equity (ROE).

CBD
Central business district or downtown. This is an area of concentrated high economic activity. The user can differentiate between the metropolitan CBD (e.g. the Johannesburg CBD) and a decentralized CBD (like the Sandton CBD).

Ceiling
The maximum allowable interest rate of a variable rate mortgage.

Certificate of Occupancy
A certificate issued by the local municipality or housing authority indicating that the new dwelling is suitable for occupation and complies with local building, safety and health bylaws. Required by Law for the property to be transferred to the buyer’s name.

Cession
The transfer of any contractual or other rights to another person, for example, the transfer of rights of ownership of a property or land transferred by treaty.

Civil Construction
the construction of physical infrastructure like roads, bridges, dams, the laying of stormwater pipes, electricity and water reticulation.
Related Topic: Building Construction.

Close Corporation
A business entity registered in terms of the Close Corporations Act 69 of 1984, which can, for example, conclude agreements of sale or leases in its name.

Collateral
Assets, such as a property, shares, fixed deposits, bank, company or government guarantees, debt free immovable property and life insurance policies, which are pledged as security for a loan.

Commercial Property
Property used in the production of goods and services, often categorised as retail, office and industrial, depending upon its primary current or potential use.

Commission
Remuneration paid to professionals for their services, for example, a negotiable commission is paid to an estate agent for leasing or selling a property.

Common Area
The area in a sectional title development owned by and for the use of all unit owners, such as swimming pools, gyms, passages, etc.

Common Law
The law which applies automatically, unless excluded by legislation or in terms of an agreement concluded between the parties to an agreement. The South African common law is Roman Dutch law.

Company
A business entity registered in terms of the Companies Act 61 of 1973 which can, for example, conclude agreements of sale or leases in its name.

Comparative Grading of Industrial & Office Space

   Industrial Offices
   Prime + A
   Prime B
   Prime - C
   Secondary D

Comparative Market Analysis (CMA)
Appraising the value of a property by comparing the prices of similar properties in the area that have been sold recently.
Related Topic: Approaches to Value, Assessed Value, Income Capitalisation Approach, Net Operating Income (NOI), Valuation.

Conditional Offer
An offer conditional upon the occurrence, or non-occurrence, of a specified, uncertain future event, such as the buyer obtaining a loan or an appraisal above a certain amount.

Conditions Precedent
Related Topic Suspensive Condition

Conditions of Loan
The terms specified by the bank, which governs and regulates the granting of the bond amount, which must be agreed to in writing.
Related Topic: Bond, Loan Agreement

Conditions of Title
Restrictive conditions limiting an owner’s rights over his/her property which is recorded on the title deed such as servitudes, building limitations, mineral rights, etc.

Consolidation of Debt
Combining different loans into one consolidated loan, with the objective of achieving a lower monthly repayment.

Contract
A legally enforceable agreement, such as an Agreement of Sale.
Related Topic Addendum, Agreement of Sale.

Conveyancer
A conveyancer is a lawyer or attorney who is qualified to attend to the transfer and registration of property transactions at the deeds office.
Related Topic: Attorney, Transferring Attorney.

Cooling Off Right
In terms of the Alienation of Land Act 68 of 1981 certain purchasers of immovable property have the right to revoke an offer to purchase or terminate a sale agreement within 5 days after the offer or sale agreement was signed by the purchaser. This is generally referred to a 'cooling off right'. The right to cool off applies only in respect of properties which are used (or intended to be used) mainly for residential purposes and only if the purchase price is R250 000 or less (a higher amount may be prescribed by the Minister of Trade and Industry from time to time). The right does not apply in certain instances, for example where the buyer is a company, close corporation or a trust.
Related Topic Addendum, Agreement of Sale, Contract.

Costs/Cover Clause
Provision in a home loan document securing an amount over and above the purchase price of the property, to cover additional costs such as legal fees, penalties, interest, repossession costs, and fire premiums.
Related Topic Agreement of Sale, Agreement of Loan, Contract, Loan Agreement.

Credit Report/Profile
A report detailing the credit history of a person, used by lenders to verify the borrower’s creditworthiness.

Credit Score
Creditworthiness can be calculated through a statistical method using credit-scoring models which take into account credit history; the amount of outstanding debt; the type of credit used; bankruptcies or late payments; collection accounts and judgements, etc.

Cyclical Trend
A short-term growth path of an economic variable. Normally refers to the business cycle, as distinct from a secular trend.

 
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