Jargon Buster
- Chain
- Completion date
- Completion statement
- Contract
- Covenants
- Deposit
- Disbursements
- Easements
- Environmental Search
- Exchange of contracts
- Fixtures, Fittings and Contents List
- Freehold
- Land registry fees
- Land Registry
- Leasehold
- Leasehold Information Form
- Local Search
- Mining Search (Coal Search)
- Mortgage
- Mortgage Account Number
- Mortgage Deed
- Mortgage Offer
- Mortgage Questionnaire
- Plansearch
- Property Information Form
- Redemption Fee
- Stamp duty
- Structural survey
- Transfer Deed
- Water and Drainage Search
The chain is the word used to describe all the different parties involved in a conveyancing transaction i.e. Mr A is buying from Mr B who is buying from Mr C (here there are 3 in the chain). Generally, the longer the chain the longer it takes to reach exchange of contracts as everyone has to wait for the last person to be ready.
This is the date when the sale/purchase of the property is completed. This is the date you move out or become the owner of your new home.
Or in the case of a remortgage, this is the date when your new mortgage will take effect.
The financial statement which we will send to you detailing all financial transactions. The statement includes all our legal costs and disbursements.
The legal agreement specifying all of the details of the sale or purchase. It sets out the main terms which have been agreed such as a description of the property, the price and the names of the parties involved. The seller's solicitor draws up two copies of the contract and each party signs their own copy. When both parties are ready to legally commit, the two contracts are exchanged.
The title deeds will often contain covenants. These are obligations written into the legal title which either obligate or restrict the property owner.
The amount paid to the solicitor for exchange of contracts, this is only refundable in exceptional circumstances. Contract deposits are 10% of the purchase/sale price but can sometimes be negotiated to a lower amount
Expenses paid by us on your behalf such as stamp duty, land registry charges and search fees.
This can either be a right given to the property owner over an adjoining property or a right in favour of an adjoining property owner over your property - typically a shared driveway.
This search provides information in five key areas which are not covered by a local search. It covers such risks as Flooding, Radon, Contamination, Subsidence or active landfill sites within the vicinity of the property.
This is the stage where all parties in the chain become committed to the transaction. From this moment on the seller must sell and the buyer must buy and it must be done at the price stated in the contract and all parties must complete (and if selling must move out) on the completion date. Until contracts are exchanged NOTHING is binding - either party can walk away from the transaction without a penalty.
Fixtures, Fittings and Contents List
This is a list of the items at the property, which are either included or excluded from the agreed price. This form is completed at an early stage by the seller and sent to the buyer, so that both parties know what is being included in the sale price.
One of the two current tenures of land recognised by English law. This recognises the whole of the land, not just a building.
Fees paid by us on your behalf to register the ownership of property with the Land Registry.
The official body responsible for recording the ownership of land.
The second current tenure of land recognised by English law. This is over a term of years and not forever. There will be a landlord who will own the freehold. This usually relates to a flat or apartment.
This is a questionnaire about the property which is completed by the sellers of leasehold property. It covers matters such as landlords, buildings insurance and maintenance charges.
This is a search done on the property being purchased and consists of a list of questions about the property, which are sent to the local authority. It covers such matters as, whether the road serving the property is to be maintained by the council, whether there have been any planning applications on the property or whether there are any planning restrictions that may affect your intentions to renovate or extend the property.
N.B. Please note that this search only relates to the property being purchased, not the adjoining land.
This is only undertaken if the property is in a coal mining area, for the purpose of ensuring that the property has not been affected by any mining activity.
This is a loan secured on the property. You cannot sell the property without repaying this loan.
This may also be called a ‘roll number' and is the reference number for your mortgage.
The legal agreement which gives the lender a legal right to property.
This is the formal written offer of your mortgage which gives all the details and conditions of your loan. This will be sent out by your mortgage lender once all references and credit searches have been carried out, and a satisfactory valuation report received.
If you are remortgaging your property we will send you a questionnaire to complete and return to us detailing matters such as any alterations to the property, your buildings insurance and any existing covenants.
A Plansearch covers planning applications for a radius of 250m of the property. This means that information which could have a major impact on the enjoyment and value of a home is revealed to the potential homebuyer. The report details commercial and residential applications, both large and small, made since 1997. We will normally only carry out this search if specifically requested to do so by you.
This is a questionnaire about the property which is completed by the seller. It covers matters such as boundaries, neighbour disputes and guarantees.
This is a penalty which may be charged by your existing mortgage lender if you pay off your mortgage early or move to a different mortgage lender or product.
This is the balance outstanding on your existing mortgage. It will normally be sent to us by your mortgage lender in the form of a redemption statement.
Land Tax, commonly referred to as Stamp Duty is a government tax which is payable by every home buyer of a property over £60,000. Duty is charged at 1% for homes priced between £60,000 and £250,000. The rate is 3% for homes over £250,000 but not more than £500,000. For homes over £500,000 the rate is 4%. If the property is classed as being in a disadvantaged area and is being sold for £150,000 or less then it will be exempt from stamp duty.
A survey giving details about the building and its integrity.
The final document which has the effect of transferring the legal title from the house seller to the house buyer.
This is a search that will tell you whether waste water goes into a public or private sewer and will produce a plan to show where water and drainage pipes are located.