S

Service fee

This is a monthly fee charged on home loans for residential property.

Sectional title

Sectional title ownership entails owning a section of the property, rather than the entire property. Flats, apartments and certain types of clustered residential properties are generally classified as sectional title properties. 

Secured bond

This is a bond that is secured by the assurance of collateral such as a mortgage bond. In contrast, unsecured bonds, also known as debentures, do not require any form of collateral from the loan applicant. 

Sell to rent back

Sell to rent back is an arrangement that allows a homeowner to sell his or her property to a bank or property investment company and then rent it back from the institution to continue living there. 

Shareholders' equity

Shareholders' equity, also known as a company's net worth, is calculated by subtracting the total liabilities from the total assets. [CHECK WITH CREDIT] 

Short scrip premium

The premium payable by the client to Nedbank Capital for facilitating the short sale of equities. This premium is calculated on the closing value of all reference instruments that are short at the close of business and is included in the overnight short premium.

SMS

Short Message Service

Enables short text messages (no more that 140-160 characters in length) to be sent to and from mobile phones.

Sole mandate

When a property is marketed by an estate agent, a 'sole mandate' implies that one particular estate agency is granted the sole right and responsibility to market the property for a certain period. 

In return for the sole mandate the estate agent will take additional steps in marketing the property, including placing feature advertisements in the local press, property magazines, etc. According to most credible estate agencies, a sole mandate substantially increases the closing rate on property sales. 

Sole proprietorship

A sole proprietorship is a business that is owned by one person. Even though he or she does not have to pay corporate income tax, the person's liability in terms of business debts and obligations is unlimited. 

Switch

This entails switching a bond to Nedbank from another financial institution.

T

Takeover

The term 'takeover' refers to the transferral of control of a company from one set of shareholders to another set of shareholders. A takeover can either be hostile or take place through a friendly acquisition. 

Tangible assets

Tangible assets, also known as real assets, are valued in terms of specific physical properties. They can include both reproducible assets (such as machinery or buildings) and non-reproducible assets (property or works of art, for example). 

Title deed

When you purchase a property, the transfer of the title deed to your name serves as proof that you have become the rightful owner of the house, flat or land. To transfer the title deed to your name you will need to consult a property conveyancer. The property conveyancing function is often executed by a law firm specialising in property law. 

Trading capacity

The cash balance in the margin account less the aggregate of the Aggregate Reserved Amount and the Aggregate Margin Required.

Transfer fees

Transfer fees are payable when purchasing a property. Essentially, this cost facilitates the administrative process of transferring the ownership rights of a property from the seller to the buyer. 

Treasurer

The treasurer is the person in charge of planning and implementing a company's funding and investment activities.

U

Uncleared

'Uncleared funds' are money that has been deposited into a bank account and is reflecting in the balance, yet has not been cleared by the bank. This holding period is imposed to prevent cheque fraud. 

Undercapitalised

A business is 'undercapitalised' when it does not have enough money to function normally. 

Underfunded pension plan

This is a pension plan with a negative surplus – there are more liabilities than assets.

Undervalued

A stock price is 'undervalued' if it is too cheap according to a specific valuation model. If a business's price/earnings ratio is significantly lower than average in a particular sector, the stock price can be considered cheap or 'undervalued'. It is essential to apply the correct valuation model 

URL

Uniform Resource Locator

This is the website address of a resource available on the Internet.