Let’s face it — the world of real estate can feel like a whole new language. Whether you’re buying your first home, selling your current one, or stepping into the industry as an agent, the lingo can leave you scratching your head. What’s an OTP? Why does everyone keep talking about LTV, FICA, or a CMA?
Don’t worry — we’ve got you covered. Welcome to The Ultimate Jargon Buster — your go-to guide to understanding the terms you’ll hear on the property journey. No fluff, no fancy speak — just clear, helpful explanations to make you sound like a real estate pro.
Common Real Estate Terms (Demystified)
1. OTP (Offer to Purchase)
This is a binding agreement between a buyer and seller once signed. It outlines the purchase price, conditions, timelines, and more. It’s not just an offer — it’s a legal commitment.
2. Bond Originator
Think of them as your home loan matchmaker. They shop around different banks on your behalf to secure the best bond (home loan) deal — and it’s usually a free service!
3. Transfer Duty
A government tax paid by the buyer on properties over a certain value (currently R1.1 million in South Africa). It’s separate from your deposit or bond.
4. Sectional Title
Owning a property in a complex, townhouse, or apartment block where you own the unit but share common property like gardens, driveways, or pools.
5. Freehold
You own the land and the building on it. This is common for standalone houses.
6. CMA (Comparative Market Analysis)
This is how agents determine a fair market price for your home. It compares your property to similar ones in the area that have sold recently.
7. LTV (Loan-to-Value Ratio)
This refers to how much of the property’s value you’re borrowing from the bank. For example, if the house is R1 million and you’re borrowing R900,000, your LTV is 90%.
8. FICA
This is your financial documentation — banks and agents require it to verify your identity and legal standing. Usually includes your ID, proof of address, and income.
9. Mandate
This is the agreement between a seller and an estate agent. An exclusive mandate means only one agent may market and sell the property for a specific time.
10. Conveyancer
A specialist property attorney who manages the legal transfer of ownership from seller to buyer. The seller chooses the attorney and the buyer pays the fees.
Why Learning the Lingo Matters
Understanding the jargon empowers you to make better decisions. You’ll feel more confident at show days, bond meetings, or listing presentations — and less likely to miss important clauses or costs.
For aspiring agents, this knowledge boosts your credibility, improves client trust, and sets you apart in a competitive field.
Ask when you don’t know… Even seasoned buyers or sellers can get tripped up by new terms. Never feel shy to ask your agent or service provider to clarify — it’s your right to fully understand every document and decision.
Want to Learn More?
At ZA Prop, we believe real estate should be simple, smart, and accessible. Whether you’re a first-time buyer, seasoned investor, or future agent, we’re here to guide you every step of the way.
