The property process comes with its own language. Whether you are buying, selling, or renting, understanding key property terms upfront helps you make informed decisions and avoid unnecessary delays later on.
Core transaction terms
These are the terms that usually come up first and shape how a transaction is structured.
Asking price
The amount a seller lists a property for. This figure is typically informed by recent comparable sales and current market conditions. Buyers may offer above or below the asking price depending on demand.
Conveyancer
Also known as the transferring attorney. This legal professional manages the transfer process, prepares the required documentation, ensures compliance, and oversees registration at the Deeds Office.
Sole mandate
A written agreement appointing one agent to market and sell a property for a specified period. Sole mandates often result in more focused marketing, clearer pricing strategies, and simpler communication for sellers.
Unconditional offer
An offer to purchase with no suspensive conditions. The buyer is not waiting for bond approval, the sale of another property, inspections, or other approvals. While this makes the offer stronger, it also carries greater risk for the buyer.
FICA and property transactions in South Africa
FICA compliance is a mandatory early step in buying, selling, or renting property and must be completed before key stages of a transaction can proceed.
What FICA means
FICA refers to the Financial Intelligence Centre Act, which aims to prevent money laundering, fraud, and other financial crime. Property practitioners are classified as accountable institutions and are legally required to verify clients.
Who must be verified
FICA applies to all parties involved in a property transaction, including buyers, sellers, landlords, and tenants.
Documents typically required
Clients are usually asked to provide:
- A valid identity document
- Proof of residential address
- A tax reference number
- Marital status documentation where applicable
These checks must be completed before finance applications, transfer, or lease registration can move forward.
Why FICA matters
FICA compliance protects buyers, sellers, agents, and the wider economy. It reduces the risk of fraud, ensures lawful transactions, and supports South Africa’s participation in international financial systems.
Finance and approvals
Once compliance is in place, finance-related terms become relevant.
Bond originator
An independent professional who submits a buyer’s home loan application to multiple banks at no cost. Bond originators compare interest rates, negotiate terms, and manage the application process through to approval.
Pre-approval
A provisional home loan approval based on affordability checks. It confirms a buyer’s budget range, but the loan only becomes final once a signed offer to purchase is submitted and a bank valuation is completed.
Interest rates
The cost of borrowing money from a bank. Home loans are linked to the prime lending rate, with individual rates set above or below prime depending on a buyer’s credit profile.
Costs, values and long-term performance
These terms relate to upfront payments, municipal charges, and how property values perform over time.
Deposit
An upfront amount paid by the buyer once an offer to purchase is accepted. A deposit is not legally required, but it can strengthen an offer and may improve bond approval terms. A common guideline is around 10% of the purchase price.
General valuation roll
A municipal record that assigns values to properties for rates and taxes. Property owners should review this when it is released, as incorrect valuations can result in inflated municipal charges.
House price appreciation
The rate at which property values increase over time, expressed as a percentage. This helps buyers assess long-term growth and gives landlords and tenants a reference point for reasonable rental escalations.
How properties are sold
These terms influence marketing strategies and sale outcomes.
Off-market sale
A property that is available for sale but not advertised publicly. These transactions are typically handled through agent databases or private buyer networks.
Reserve price
The minimum price a seller will accept when selling via auction. If bidding does not reach this amount, the seller is not obliged to sell.
Turnkey property
A property that is ready for immediate occupation, with no major repairs, renovations, or upgrades required before moving in.
Land use and permissions
Zoning
The classification that determines how land may be used or developed. Zoning controls residential, commercial, agricultural, and mixed-use rights and is managed by local authorities.
Frequently asked questions
Do I need a deposit to buy a property?
No. A deposit is not legally required, but it can make an offer more attractive and may improve bond approval terms.
What is the difference between pre-approval and final bond approval?
Pre-approval is based on affordability only. Final bond approval is granted after a signed offer to purchase and a bank valuation.
Can I buy a property without a bond originator?
Yes. Buyers may apply directly to banks, but a bond originator compares multiple banks and negotiates rates at no cost to the buyer.
What does FICA mean in a property transaction?
FICA requires identity and address verification before a transaction can proceed. It applies to buyers, sellers, landlords, and tenants.
What happens if a property does not reach its reserve price at auction?
The seller is not required to sell, and further negotiations may take place after the auction.
Final thoughts
Property transactions involve multiple stages, and unfamiliar terminology can create unnecessary stress. A good property professional will explain each step clearly and guide you through the process from compliance and finance through to transfer and registration.
You can view current residential properties for sale through R&R Real Estate here:
https://www.rrealestate.co.za/results/residential/
