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Vacancy Rate
Indicates the level of empty space in a specific area or building and is usually expressed as a percentage of the gross rentable area. It also refers to the period of time that a residential buy-to-let property is vacant during a year.

The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

This valuation basis represents the current exchange value of the property if placed on a similar market as exists today but was placed on that market long enough ago to be properly marketed and the best price obtained as at the valuation date.
Related Topic: Approaches to Value, Assessed Value, Assessment, Comparative Market Analysis (CMA), Income Capitalisation Approach.

Valuation Fees
The amount that the bank will charge you to assess the property prior to granting you the finance for which you have applied.
Related Topic: Acquisition Costs.

Variable Rate
A fluctuating interest rate, as opposed to a fixed rate, that is pegged for a certain period of time.

If the prime rate changed by the banks rise or drop in response to a change in the repo rate set by the Reserve Bank, the borrower’s home loan rate will rise or fall accordingly. You can protect yourself from these fluctuations in the interest rate by capping your interest rate.
Related Topic: Fixed Interest Rate.

Variation Agreement
States that the bank may change the interest rate at any time without giving its client notice and that the client may not appoint their own insurers.

VAT (Value Added Tax)
A government levy, charged by vendors who are VAT registered, on the supply of goods or services rendered. It is currently calculated at 14% of the cost of goods supplied or services rendered, and added to the value of these good or services. With immovable property, the purchase price is deemed to include VAT if the seller is a VAT vendor. If the seller is not a VAT vendor, transfer duty is levied.
Related Topic: Zero Rated.

Vendor Loan
In a property transaction, the seller is the Vendor and in some instances the purchaser requires a loan over and above what the Bank is prepared to lend. When such loan is granted by the seller to be settled with interest over a predetermined period, it is referred to as a ‘Vendor Loan’
Related Topic: Bond, Building Loan, Loan Agreement .

A standard clause in the agreement of sale, which stipulates that the property is sold “as is”, without any guarantees from the seller as to the condition of the property. If there are any defects in the property of which the seller was unaware, the buyer will acquire the property with such defects. The seller can therefore not be held responsible for defects at a later stage. However, all known defects must be mentioned to the buyer upfront. The voetstoots clause does not protect the seller if defects in the proper y are intentionally hidden to mislead the buyer. Purchasers should carefully inspect the property and not rely on any oral assurance which is not actually guaranteed.

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