In Kenya whether you plan to apply for a loan, or buy a piece of land, or sell your apartment – you’ll hear realtors and banks use some unfamiliar lingo . If you correctly understand these technical terms, you’ll be able to clinch better deals.Let us demystify some of these real estate jargons.
Agreement of sale:Also referred to as a purchase or sale agreement, it is a written contract between the seller and the buyer for the sale of property. Terms and conditions under which the seller agrees to sell and the buyer agrees to buy are clearly spelled out in the contract and signed by both parties.
Amendment:A slight alteration or correction to an agreement without changing its basic essence.
Amortisation:A loan repayment plan which enables the borrower to reduce his debt, through monthly payment of both principal and interest due.
Appraisal:A realistic estimate of the value of the real estate on a given date.
Commission:Money paid by the seller (and in some cases even by the buyer) for finding a suitable buyer and completing the sale of property.
Cloud on title:An irregularity or claim, that if proved valid would adversely affect the title.
Depreciation:A fall in the value of the property is known as depreciation.This term doesn’t particularly apply to buying or selling land as a piece of land will always appreciate in value.Thats why you hear sayings like, “buy land they’re not making it anymore” , “Buy land and Wait”
Encroachment:Any wall, fence, fixture, obstruction or part of a building that crosses its legal limits and protrudes into the property of a neighbour.
Easement rights:A right granted to a person or company authorising access to or over another’s land is easement rights. For instance, electric company drawing wires, placing poles or pipelines is a common example.
Lien:A claim by one person over the property of another as a security for money owed.
Mortgage:A lien or claim against the property, given by a buyer to the lender as a security for the money borrowed.
Public domain:Government land belonging to the public at large.
Refinancing:Paying off one loan with proceeds from another loan.
Lease:An agreement under which the owner of a property gives the rights of possession to a lessee for a specified term and for a specified rent.
Survey:The measurement of plot by a surveyor that delineates its boundaries.
Power of attorney:A document by which you can authorise and empower another person to act on your behalf in specific manner in specific transactions.
Title:The rights to ownership , possession, usage and disposal of a property.
Waive: Voluntary relinquishment of one’s rights or privilege.