Helping you understand common Conveyancing terms
A
Abstract or Epitome of Title – A summary or list of relevant title deeds proving the history of ownership of a property which has not been registered at the land Registry
Adopted Highway – A road (and ancillary paths and sometimes verges) maintained by the local authority at public expense
Advance – The original amount of the loan from a Bank or Building Society
Assent – The name given to a transfer document by which the
representatives of a deceased owner transfer the property to the person(s)
entitled following death
Assured Shorthold Tenancy – A form of tenancy agreement which permits the landlord to secure possession of the property at the end of the agreed tenancy period
Attorney – A person appointed to act on behalf of another person and sign documents on their behalf
B
Base Rate – The rate of interest set by the Bank of England upon which most other interest rates are based
Brine Search – A search to find out if a property might be affected by old brine (salt) workings near the property
Building Regulation Consent – Approval by the local authority to the method of construction and materials used in building work
C
Cashback – A sum of money paid by the Lender on completion of a mortgage (but only if this arrangement formed part of the mortgage offer)
Chain – A position in which Seller 1 sells to Buyer 1 and Buyer 1 sells to Buyer 2 etc thus creating a chain of connected transactions
Commons Registration Search – A search to ensure the property is not registered as common land or part of a village green. If it is, then other people may have rights over the land concerned
Completion – Final completion of the transaction when the Seller receives the money and the Buyer receives the keys
Conservation Area – An area with extra planning controls. This is to protect its special historic and architectural elements such as original windows or doors
Contract – The written legal agreement prepared in duplicate for respective signature by the Seller and the Buyer setting out all the legal rights and obligations agreed between them
Conveyancer – A legal executive, licensed conveyancer or conveyancing solicitor will do the legal work to do with transferring the ownership of land or buildings from one person to another
Conveyancing – The legal process used to buy and sell land and property
Covenants – Legal promises or obligations
Credit score – A rating to show how likely a lender is to lend you money
D
Decision in Principle – A written statement from a lender to say that ‘in principle’ they will lend a certain amount to a particular prospective borrower
Deed of Covenant – A document or deed containing an agreement to pay or do something
Deed of Gift – A document or deed used to transfer ownership of property from one person to another without any payment being made
Deed of Guarantee – A document used where one person agrees to be responsible for someone else’s debt or mortgage obligations should that person fail to carry out his/her own obligations
Deed of Postponement or Priority – Where a Lender agrees that its mortgage will rank or take effect in priority after another lender’s mortgage
Deeds – If a property is not registered at the Land Registry, Deeds establish ownership and confirm the Owner’s title to the property
Deposit – An amount to be paid on exchange of contracts by the Buyer to the Seller as security for the performance of the Contract by the Buyer. This is usually 10% of the purchase price
Disbursements – Payments made by us to 3rd parties for your benefit and for which the Buyer or Seller is responsible, eg Land Registration fees
E
Energy Performance Certificate – An Energy Label with a ranking between A and G. It indicates the running costs and suggests suitable improvements which can be made to a property to make it more energy efficient. An EPC must be provided to any potential buyer unless the
property is exempt from EPC requirements
Environmental Search – A search to see whether there is any indication that the property may be affected by contamination, flooding and other environmental issues
Equity – When talking of property and mortgages this normally means the difference between the value of a property and the amount owed on mortgage(s)
Estate Facility Charge – An fee paid annually for maintaining the wider estate on which a property is located, e.g. for upkeep of public areas
Event Fee – A fee payable under a term of, or relating to, a residential lease of a retirement property on certain events such as resale and sub-letting. An event fee is sometimes referred to as an exit or transfer fee
Exchange of Contracts – The formal exchange of the two identical copies of the Contract when the Seller and Buyer become legally bound to complete the transaction on an agreed date
F
FENSA – A certification scheme for replacement window installers. FENSA members are certified as competent persons and can self-certify that replacement windows comply with building regulations
Fittings – Those items in your property that are not fixed down e.g. carpets, curtain rails, free-standing ovens, fridges, freezers and washing machines
Fixtures – Those items in your property that are fixed to the floor or wall, e.g. light fittings, built-in wardrobes, boiler, radiators, plug sockets
Fixtures, Fittings and Contents Form – A standard form in which the Seller specifies items in or affixed to the property which are included in the sale at the agreed price
Flying Freehold – If at least a part of one property is built on top of part of another property (and the upper property owner does not own the whole building or land underneath the “flying” part) and the legal structure of the block is not leasehold, then a flying freehold will arise. This
can prove to be a problem
Freehold – An owner of a freehold property remains the owner indefinitely, until the Owner sells or transfers the property or dies
Freeholder – The person who owns the freehold
Full Title Guarantee – The standard guarantee given by an absolute owner to the Buyer
Further Advance – An additional amount loaned to an Owner by the lender after completion of the original mortgage
G
Ground rent – A payment generally made annually by the leaseholder to the freeholder under the terms of a lease
H
High Loan to Value Fee – This may be charged by a Lender where a borrower borrows more than a certain (normally over 75 percent or higher) percentage of the value of a property. It is used to insure the Lender only against possible loss arising if the property is sold by the Lender after default on the mortgage by the borrower HM Land Registry – The organisation which registers the ownership of land and property in England and Wales
Home survey – A report that advises clients on the condition and matters relating to a property
I
Indemnity insurance – Insurance that can be used during conveyancing transactions to cover a legal defect with a property that can not be resolved quickly, if at all Index Map Search – A search at the Land Registry to see if a property is registered or unregistered
L
Land Charges Search – A search against a person’s name at the Land Registry to see if that person has been the subject of any bankruptcy proceedings and, if the property is unregistered, to see if there are any mortgages or other adverse interests registered against the owner
Land Registry – An organisation controlled by central government which maintains a register of properties and their ownership in England and Wales
Land Registry Fee – The fee payable to the Land Registry to register any change in the property details including a change of ownership
Landlord / Lessor – Usually (but not necessarily) the Freeholder but certainly the person
entitled to receive the ground rent from the Lessee or Tenant
Lease – A document which sets out the rights and duties of landlord, leaseholder and any other party, such as a management company, who has rights and obligations in the lease
Leasehold – Where you own the right to occupy a property for a fixed number of years, typically 99 years or more
Lender – A Bank, Building Society or other person or company who lends money to an Owner
Lessee – The present owner of the leasehold property, who owns the property for the number of years specified in the Lease
Lessor – Another word for “Landlord”
Letter of Engagement – This sets out the terms of agreement between the client and their legal representative including client instruction, fees, timescales and other relevant information
Limited Title Guarantee – A title guarantee given by a Seller who has limited knowledge of the property and cannot give a full title guarantee. An executor selling on behalf of a deceased owner will sell with limited title guarantee
Listed Status – Listing marks a building’s special architectural and historic interest, and brings it under the protection of the planning system. Depending on the category of listed building and the scope of alterations a householder may wish to make, listed building consent will need to be
secured to make any changes that might affect the building’s special interest.
Local Search – A search submitted by us to the local authority to ask a number of questions about the property including (by example) information on plann
LPE1 form – Contains information about a property held by landlords, managing agents and management companies – for example, information on ground rent and service charges
M
Mining Search – A search to check whether the property may be affected by past or present coal mining and, in particular, the risk of subsidence
Mortgage Deed – A document used when a Lender lends money to a Buyer or existing Owner. The document is registered against the property at the Land Registry and secures repayment to the Lender
Mortgage Offer – This specifies the terms upon which the Lender is prepared to make the loan including the specific financial details and period of repayment
Mortgage Term – The length of time agreed for the repayment of the loan
Mortgage Valuation – An assessment made by your mortgage provider as to whether they are willing to lend you money against a property. This is not the same thing as a survey
Mortgagee – The Lender person or Company who benefits from the Mortgage security (e.g. Bank or Building Society)
Mortgagor – The Property Owner (i.e. the Borrower) who enters into a mortgage deed in favour of a Lender
N
Negative Equity – When your home is worth less than the amount you owe a financial provider or other organisation for your mortgage
O
Ombudsman – An official organisation appointed to investigate individuals’ complaints against a company or organisation
Occupier’s Consent – Any person who lives at the property who is not an owner (and so will not be signing the mortgage deed) will be asked to consent to the mortgage being taken out and agree to move out if the lender takes possession because the owner fails to pay the mortgage
P
Party Wall – A wall owned jointly with a neighbour and repairable at joint (and normally equal) expense
Planning Permission – Approval by the planning authority to the construction (and extension/alteration) of a property or a change of its use
Power of Attorney – A document by which someone appoints another person, to act as their attorney
Private Road – A road which is not an adopted highway and not maintained at public expense. Property owners need to have documented rights over it as it is not necessarily a road which offers public access
Probate – The process through which someone is given permission to deal with the estate (belongings and debts) of someone who has died
Property Chain – Linked property transactions, where a seller of one property is a buyer of another
Property Information Form – A standard questionnaire completed by a Seller to give information about the property to the Buyer (e.g. who maintains boundaries and whether there have been any disputes)
Property Searches – A legal professional will conduct legal searches when you are buying a property to ensure there are no other factors you should be aware of.
R
Radon Gas Search – A search to see if the property is affected by naturally occurring radioactive gas which may if above certain safety levels, require preventative action to be taken (e.g. more ventilation in a property)
Redemption Figure – The amount it will cost to pay back your mortgage early, which consists of the remaining unpaid mortgage, any early payback charges and a certain amount of interest
Redemption Penalty – A penalty payment charged by a Lender if a loan is repaid within a period specified in the mortgage offer (some loan products only)
Redress Scheme – All estate agents are legally required to be members of a redress scheme. Schemes may be able to resolve disputes between estate agents and consumers once internal complaint processes
Referral Fee – A payment made from one business to another in exchange for referring customers to them
Registered Land – Property which has been registered at Land Registry
Remortgage – Paying off one mortgage loan and taking out another with a different lender
Rentcharge – Some freehold properties are required to pay a modest rent (despite being freeholds). It is sometimes created simply for profit but may be used as a legal device to ensure estate covenants are enforceable
Reservation agreement – An agreement between the buyer and seller where each commits to a property transaction. May include a financial penalty for pulling out of the agreement to cover costs incurred by the other party during the transaction process
Reservation fee – A payment made to a developer to secure a property
S
Service Charge – A contribution payable by a leaseholder typically to a freeholder or managing agent, for a share of the cost of insuring, maintaining, repairing, and cleaning the building
Snagging – Defects or unfinished pieces of work in a new build home. Sold subject to contract (SSTC) – an offer has been made on the property and the seller has accepted it, but they have yet to exchange contracts, so it is not legally binding
Sold Subject To Contract (SSTC) – An offer has been made on the property and the seller has accepted it, but they have yet to exchange contracts, so it is not legally binding
Sole Selling Rights – This type of contract means that the estate agent is the only one able to sell a house during the period set out in the agreement. This means that even if you find a buyer yourself, you will still have to pay commission fees to the estate agent. If you engage another
estate agent during the period stipulated and find a buyer through them, you may find you are liable for dual fees where both agents require payment
Stamp Duty/Land Transaction Tax – A tax paid upon purchase of any homes depending on the value fo the property and the rates of tax applicable at the time, unless you are a first time buyer
Subsidence – Where a property moves due to poor construction or ground movement for geological reasons
(Home) Survey – An agreed level of service to advise clients on the condition and matters relating to a property. The homebuyer’s survey should not be confused with a mortgage valuation
(Home) Surveyor – It is advisable to employ the services of a qualified
surveyor to conduct a homebuyer’s survey before purchasing a property
T
TA6 form (or TA7 form for leasehold properties) – Property Information Form which sets out information relating to a property for sale; e.g boundaries and disputes
TA10 Form – Known as the Fittings and Content Form or the Fixtures and Fitting Form. Sets out what fixtures and fittings are included in the sale of the property and which are excluded
Tenant – For most purposes this is the same as “Lessee”
Tin Search – A search to see if the property may be affected by past or present tin mining
Title – An owner’s actual right of ownership (whether or not the owner is in occupation)
Transaction – A dealing with property (e.g. sale or purchase or remortgage)
Transfer – A document which actually transfers ownership of a property from one person to another (as opposed to a Contract which may include an obligation to effect a transfer at a later date)
Transfer of Equity – A document transferring ownership of a part share or interest in a property from one person to another
Tree Preservation Order – An order made by the planning authority specifying a tree or group of trees as protected and requiring that authority’s permission to cut branches or fell them
U
Under Offer – The same as ‘sold subject to contract’ – an offer has been made on the property and the seller has accepted it, but they have yet to exchange contracts, so it is not legally binding
Unregistered Title – A title to a property which has not been registered at the Land Registry. The title will consist of old style conveyances and other documents
V
Vacant Possession – A Seller required to give vacant possession must (on completion) leave the property (including the garden and outhouses) empty of people, possessions and rubbish
Valuation – A very simple form of survey designed to establish what the property is worth and nothing more
Vendor – An older word for Seller
W
Wayleave Agreement – A written agreement entered into with an owner to give a service provider (e.g. Electricity or Telephone company) a right for their cables to pass under or over their property
