Typically many people struggle with terminologies associated with the real estate industry. Such technical jargon can prove to be a roadblock for many house-hunters who are in the process of striking an agreement for a property deal.

Jumia House Ghana has identified a few terminologies and offered explanations to enlighten house-hunters and first-time property sellers.

Advance Fee

A fee paid prior to the rendering of service, usually covering a stipulated duration. Many landlords in Ghana charge advance fees when renting out their properties. According to Ghana Law, this fee should not be more than 6 months cover. However, due to the lax nature of the real estate laws, landlords typically charge their tenants a minimum of two years advance fees. Property sellers also may charge advance fees when selling homes on installment basis, usually demanding a lump sum for initial payment.

Aesthetic Value

The additional value that a property enjoys based on subjective criteria such as look or appeal. A property may be valued at a particular price, however, depending on variables such as the location, company’s brand equity and the availability of community infrastructure, property owners may choose to add a premium to the evaluated property.

Affidavit

A statement or declaration reduced to writing and sworn to or affirmed before a public official who has authority to administer an oath or affirmation. An affidavit is usually required to provide proof of property ownership. Banks and money lenders are usual institutions that may require an affidavit in order to finance a business venture.

Bequeath

The act of giving general property by will. A property owner needs to state in a document, known as a will, that he or she is readily giving out such property to a beneficiary upon his or her death in order to make the process legal and avoid litigation.

Bona Fide

The concept of good faith and being authentic without fraud or deceit. A bona fide purchaser describes one who is innocent and has no knowledge of any defects that may accompany the title of a property.

Buyers’ Market

The situation which exists when a buyer is in a better position to influence the price and terms of property because the property market is in great supply in relation to demand. This was a situation was evident in the United States during the global financial crises, when demand for homes went down and led to major price cuts by real estate developers.

Caveat Emptor

A Common Law concept derived from Latin which means ‘Buyer Beware’. This expresses the general concept that in the absence of any misrepresentation, the buyer must examine the property adequately. It goes to suggest that a buyer, upon buying a home, cannot rescind on his or her decision to buy property in the hope that he or she would recover the money.

Collateral

Any real or personal property having marketable value that a borrower pledges as security in order to obtain a loan. In mortgage transactions, specific land is a collateral.