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JET

JET stands for Johannesburg Equities Trading system. This trading system, managed by the JSE, automatically matches, buys and sells orders of JSE member companies.

JIBAR

The JIBAR, Johannesburg Interbank Agreed Rate, is the money market rate that is used in South Africa. JIBAR is calculated as an average of the respective rates of various local and international banking institutions.

Joint liability

Joint liability refers to a legal obligation or debt, the fulfilment or repayment of which is the responsibility of two or more individuals, with each being liable for his/her pro rata share of the entire obligation or debt. 

JSE

JSE is short for Johannesburg Securities Exchange.

JSE member firm

A JSE member firm is a company that is registered with the JSE, and is therefore permitted to trade as a principal or agent in any transaction. 

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L

Latent defect

Latent defects are flaws or faults in a property, such as cracks, damp, rot or subsidence, that are hidden from view on initial inspection of a property or are not picked up when a property is inspected prior to purchase. 

Lease

A lease is an agreement between a property owner and a tenant. It stipulates the conditions for property rental, and includes details such as maintenance obligations, the monthly rental rate and the deposit payable. Lease agreements are usually effective for one year, with a mutual notice period of usually approximately one or two calendar months. A lease can also be used when an individual finances the purchase of a vehicle by leasing it instead of buying it. In this scenario the owner of the vehicle (known as the lessor) permits the use of the vehicle by a lessee for a specified period of time. During this period the lessee retains the vehicle and pays a rental fee for its use. At the end of the lease term the lessee must extend the lease period or, alternatively, purchase the vehicle. The lessee also has the option of purchasing the vehicle before the end of the lease, in which case the contract will be terminated early. 

Levy

A levy is a fee payable by property tenants in a sectional title scheme as contribution to the upkeep of common areas such as gardens and quads, as well as other communal facilities. Levies are proportionately calculated, ie the bigger your sectional title property, the higher your levy would be in relation to that of your neighbours. 

Liability

Liability refers to the legal obligation or debt of one party towards another party. Life coverLife cover is a form of insurance taken against the life of the policyholder to ensure that his or her financial obligations can be met. Beyond such obligations, life cover is often taken out by people with young dependants. As the policyholder gets older, the cost of life cover generally increases, making this a financial solution best suited to young adults or parents. 

Loan amount

This is the amount the client requires from Nedbank to finance the purchase of a property.

Line of credit

Line of credit is an agreement between a lender and a borrower, stipulating the maximum sum of credit a borrower may have access to. This agreement also clarifies various conditions, such as when the money must be repaid, and how (e.g. in monthly instalments). 

Loan to value

Loan to value, also referred to as the loan-to-value ratio of property, refers to the ratio between the home loan amount required to buy a property and the market value of the property as estimated by the bank or lending institution that grants the loan. 

Lock-in

A lock-in is a written agreement that guarantees a homebuyer a specific interest rate, on condition that the loan is formalised within a set period.