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5.1 Define the term title deed - NSC Consumer Studies - Question 5 - 2020 - Paper 1
Question 5
5.1 Define the term title deed. 5.2 Give the purpose of the National Home Builders' Registration Council (NHBRC). 5.3 Differentiate between full-title ownership an... show full transcript
Worked Solution & Example Answer:5.1 Define the term title deed - NSC Consumer Studies - Question 5 - 2020 - Paper 1
Step 1
Step 2
Step 3
Differentiate between full-title ownership and sectional-title ownership.
Answer
Full-title ownership: This allows the buyer to own the entire property and all structures on it. They have complete control and responsibility for the property.
Sectional-title ownership: This refers to owning a section of a larger property, usually within a complex. The owner has a share of common property along with other section owners and has certain responsibilities aligned with shared areas.
Step 4
Name THREE financial responsibilities that John will have as a landlord.
Answer
- John must pay property taxes based on the assessed value of his property.
- He is responsible for paying for utilities and any maintenance costs incurred on the property.
- John must ensure that he pays for any property insurance to protect his investment.
Step 5
Explain to John the possible disadvantages of renting out his property.
Answer
- Tenants may cause damage to the property and not take responsibility for repairs.
- John could face challenges collecting rent on time, leading to financial strain.
- There is a possibility that tenants might not fulfill their lease obligation, resulting in lost rental income.
Step 6
Explain why it would be best for John to take a fixed interest rate on the home loan.
Answer
A fixed interest rate provides certainty for John's monthly mortgage payments regardless of market fluctuations. This stability helps him budget effectively and reduces the risk of increased payments if interest rates rise in the future.
Step 7
State FOUR factors to consider when shopping for a vacuum cleaner to ensure that it is easy to operate.
Answer
- Weight: Must be manageable to carry and maneuver easily.
- Cordless option: Should have a model that eliminates tangling with cords.
- Size: A compact model is easier to store and handle.
- User-friendly controls: Features should be intuitive and clearly marked.
Step 8
Discuss the advantage(s) of the following universal design features of the microwave oven:
Answer
5.6.1 Stainless steel finish: The finish is durable and easy to clean, saving time and promoting hygiene.
5.6.2 Clear display text: This feature allows users to operate the microwave easily without misreading or confusion regarding settings.
5.6.3 Automatic programming based on the weight of the food: This ensures efficient cooking time, saving energy and reducing the risk of overcooking.
Step 9
Compare the financial aspects of buying household appliances using a bank credit card and with using an instalment sale transaction.
Answer
| CREDIT CARD TRANSACTION | INSTALMENT SALE TRANSACTION |
|---|---|
| Payment is due immediately after purchase. | A deposit is paid upfront to initiate the sale. |
| Interest is charged if not paid in full by due date. | The consumer makes regular payments until the balance is paid off. |
| There may be no insurance charges associated with credit card transactions. | Insurance charges may apply based on the transaction terms. |
Step 10
Predict the possible financial consequences for homeowners who have lost their homes due to floods or fires.
Answer
- Homeowners would be left without a place to live while their property is being rebuilt.
- They might incur expenses staying elsewhere, impacting their financial stability.
- If uninsured or underinsured, they may not be able to recover the full value of their lost home, leading to significant financial loss.