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Take-Up Rates
The rate, expressed as a percentage, at which available space in the marketplace is leased during a predetermined period of time i.e. the speed with which the market in a specific area absorbs empty space, indicating demand. Also known as ‘absorption rate’.

Tax Certificate
A breakdown of the home loan account over a certain period, usually a year, which details the interest and insurance amounts paid, as well as the total repayments over the period, for tax purposes.

Timeshare
A form of ownership or right to the use of a property. Timeshare properties are typically holiday units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time in which they may use the property. Timeshares may be on a part-ownership or lease/’right to use’ basis, in which the sharer holds no claim to ownership of the property.

Title Deed
A legal document registered at the deeds office, which is proof of ownership of a property. It also contains details pertaining to a specific piece of land. These include: the names of the existing owner as well as the previous owner; a full description of the property, including its measured size; the purchase price of the property paid by the existing owner; conditions restricting the use or the sale of the property; limited real rights registered in respect of the property and their nature, for example, a mortgage bond in favour of a financial institution. When transfer of the property into a new owner’s name takes place, the existing title deed is superseded by the new title deed. This takes place in the deeds office by way of signature by the conveyancer and the Registrar of Deeds. The title deed is evidence of ownership and is held by the owner of the property, unless a bond is registered over the property, in which case the bank will hold the title deed until the bond is repaid in full.

Title Deed Restriction
A clause in a title deed that limits the use of the property in certain respects. Also known as a condition of title. See ‘Condition of title’.

Total Return
Normally measured over a year, in which case it is the income yield for the applicable year (net income in year 1 divided by the purchase price or value in year 0) plus the change in capital value over that year. Also known as the combined return because it combines the income yield and capital return in one measure.

Transfer
Ownership of a property is transferred to the buyer and registered in the Deeds Registry.

Transfer Costs
Consist of transfer duty or VAT, conveyancer fees and deeds office registration fees. A buyer may be able to obtain a bond that covers these costs in addition to the purchase price. A separate agreement has to be signed for the transfer costs, which have to be repaid within a much shorter period than the loan itself.
Related Topic: Acquisition Costs.

Transfer Duty
A tax payable to the Receiver of Revenue on the registration of transfer of immovable property. The amount of the transfer duty is determined according to the value of the property and the entity which buys the property, i.e. an individual, a company, a trust or a CC. If the purchase price includes VAT, that is, when the seller is a VAT vendor, no transfer duty is payable.
Related Topic: Acquisition Costs.

Transfer Fee
A fee payable to the transferring attorney for the transfer of the property from the seller’s name into the name of the buyer.
Related Topic: Acquisition Costs.

Transferring Attorney
The transferring attorney is nominated by the seller and handles the transfer of ownership of the property from the seller to the buyer.
Related Topic: Attorney.

Tripartite Agreement
A business agreement between three separate parties. This type of contract is commonly used to secure bridge loans for the construction of a home or other real estate.

Tripartite agreements extend credit for construction to the buyer from the construction provider. The provider in turn holds the property as collateral. The primary lender will then pay off the construction loan and assume full liability for the loan upon completion of the construction.
Related Topic: JBCC 2000 Contract.

Triple Bottom Line
A development project’s ability to generate benefits in the social, environmental and economic spheres.

Triple Net Lease
A fully repairing and insuring lease; Tenant pays all operating costs, including but not limited to, Rates & Taxes, Levies, Insurance and Internal & External Maintenance.
Related Topic: Basic Rental, 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, Turnover Rental.

Trust
a structure to which property is transferred, and is then administered by trustees on behalf of one or more beneficiaries, in accordance with the trust instrument (which could be a trust deed or a will)

Alternatively in the context of estate planning, a trust can be described as a legal relationship which has been created by a person (known as the founder, donor or settlor) through placing assets under the control of another person (known as the trustee) during the founder’s lifetime (an inter vivos trust) or on the founder’s death (will trust, testamentary trust or trust mortis causa) for the benefit of third persons (the beneficiaries).
Related Topic: Beneficiary, Deed of Trust, Inter Vivos Trust, Investment Trust, Trustee.

Trust Account
When attorneys and/ or estate agents hold money for people, it is deposited into a separate interest bearing trust account until it is paid out. Every estate agency business must have a trust account, which is audited by an auditor every year. The governing bodies of attorneys and estate agents have created a guarantee system to protect the public against the misappropriation of their funds by attorneys and estate agents.

Trustee
A trustee is a person appointed to manage the assets of the trust for the benefit of the beneficiaries.
Related Topic: Beneficiary, Deed of Trust, Inter Vivos Trust, Investment Trust, Trust.

Turnover Rental
A rent that is calculated as a percentage of the gross revenue or total sales of a lessee's business, usually in addition to a base rent and more commonly found in leases of supermarkets within a shopping centre.

A turnover rent is calculated by reference to the turnover generated by the tenant. It goes without saying that if the landlord is to be able to calculate the turnover rent, it must have access to accurate turnover information but tenants do not always provide the information or provide it on time. Careful drafting of the terms of the lease and early negotiations with the tenant can encourage tenants to produce the information and reduce the delay in receiving rent and potential litigation costs.

Turnover rent leases come in many shapes and sizes e.g.:

The “classic model” with a principal rent based on a percentage of open market rent (usually 75 per cent or 80 per cent) plus a fixed percentage of the tenant’s turnover to the extent it exceeds the principal rent;

A rent based solely on the tenant’s turnover but with the tenant guaranteeing a minimum amount of turnover although, in many cases, the landlord will receive no benefit from turnover above a certain figure;

A rent based on the tenant’s turnover, the tenant paying an agreed base rent with annual uplifts or “ratcheting” of the base rent payable. The uplifts will be based on any increase in turnover for the previous accounting period.

The classic model provides the landlord with a large degree of certainty as to the rent it will receive. Other forms of turnover rent leases provide less certainty. The lack of certainty can have knock on effects e.g. upon a valuation of the relevant property. The landlord will want to ensure that, so far as possible, lack of turnover information will not deprive it of the ability to demand and recover rent.
Related Topic: Basic Rental, 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.

 
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