Abstract TitleA list of all documents that prove title to land. | AssignTo transfer the right or interest in a property from one person to another.
| AssigneeThe person to whom the right or interest of property is transferred. | AssignorThe person who transfers a right or interest of property to another person. |
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Banker’s DraftA cheque drawn directly from a bank’s funds, and not from an individual’s account. | Beneficial OwnerThe person or people who are entitled to receive the proceeds of a sale. | Breach of ContractWhere one of the parties bound by a contract fails to keep to the contract’s terms and conditions. | Building RegulationsApproval Consent required from the local authority for certain works undertaken at a property. |
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Certificate or Report on TitleA standard form used by solicitors to request the mortgage or loan funds from the lender.
Completion Statement
A list of all the financial aspects of a transaction. Produced by a solicitor, it sets the costs against the money being received and shows whether money needs to be paid to the client or whether a shortfall needs to be made up before completion. | ChargeA loan that is secured against land or property.
Contract
A written and signed agreement between seller and buyer.
Conveyancer
A person qualified to undertake conveyancing. Either a solicitor, licensed conveyancer or Legal Executive. | Client AccountA solicitor’s bank account where a client’s money is held.
Conveyancing
The term used to describe the legal process of transferring a property from one owner to the next.
Covenant
An agreement contained within a contract or a deed that binds somebody to do something or not to do something. | Completion DateThe date that a contract takes effect and property ownership passes from seller to buyer.
Contract Race
When a seller deals with more than one prospective buyer and exchanges contracts with whichever is ready first. |
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Deed Formal document that is executed by a formally witnessed signature. | DepositThe amount of money paid by the buyer on exchange of contracts, typically 10% of the purchase price. | DisbursementsFees paid by the buyers solicitor on his or her behalf, which include stamp duty, land registry and search fees. | |
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Easement A right granted over a property or land e.g. a right of way. | EnergyPerformance Certificate (EPC)
This is a new type of survey that assesses the energy efficiency of a property along with the environmental impact based on its CO2 emissions. | Environmental ReportA report on the land uses of a property and its surroundings now and in the past. This will indicate the likelihood of contamination or pollution. | Exchange of Contracts The point at which the signed contracts to buy and sell are exchanged along with your deposit, to legally commit the buyer and seller to the transaction, at the price and terms agreed. |
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Fixtures and FittingsFixtures are items that have become part of a building or land and are therefore included in the sale. Fittings are not attached to the building or land and so are not included in the sale unless otherwise agreed. The seller will complete a fixtures and fittings form that will confirm what is included in the sale, what isn’t included, and what is for sale separately. | FreeholdWhen a property belongs entirely to the owner (subject to any mortgage or lease granted). | | |
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Ground RentIs the charge paid to the Landlord, usually on an annual basis, and fixed by the Lease terms. | | | |
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Indemnity InsuranceInsurance against any aspect of a property transaction such as an adverse search result or breach of planning/building regulations. This will not solve any problems but it will provide compensation. | | | |
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Joint TenantsWhere a property is purchased under joint tenancy. Normally used for husband and wife purchases because if one of the owners dies then his/her share will automatically pass to the survivor. Also see tenants in common. | | | |
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Land RegistryThe Government department responsible for registering ownership of land. | Lease For a leasehold property, this document sets out the terms of occupation between landlord and tenant. | Leasehold Owning a property for a fixed term but not the land on which it stands. | Local AuthoritySearch Application made to the Local Authority for information that may affect a property. The search results will show entries such as planning restrictions and whether the roads have been adopted and are maintained by the Council. |
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Maintenance ChargeAn amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of the building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as service charge.
Mortgage
Loan secured against a property. | Management CompanyCompany formed to manage obligations of a lease such as insurance and repairs.
Mortgagee
The mortgage lender e.g. a bank or building society. | Managing AgentsFirm employed by a landlord or management company to arrange practical maintenance and general management of a building.
Mortgagor
Mortgage borrower. | |
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NHBCNational House Builder Council. The NHBC provide a ten year insurance policy on the main structure of new properties. | | | |
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Official CopiesCertified copies of entries on a register title, provided by the Land Registry. | | | |
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Planning PermissionOfficial consent/approval from a Local Authority for works undertaken on a property. | Property Information Form (PIF)Also known as a Protocol Form the PIF is provided by the seller's solicitor and is completed by the seller. It forms part of the conveyancing process and covers such matters as boundaries, services, guarantees for work carried out and planning consents. | PurchaserBuyer. | |
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Redemption
The endpoint of involvement with a mortgage, it occurs when the loan taken out on a property is paid off in full. | RetentionWhere a mortgage lender retains part of a loan, pending satisfactory completion of specified works. | Restrictive CovenantsSee FAQ. | |
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Subject to ContractNegotiations between a buyer and seller before exchange of contracts. Any agreement is not binding until contracts are exchanged. | Stamp Duty Land Tax (SDLT) Tax payable to HM Revenue & Customs when a purchase price is more than £125,000 or more than £300,000 for first time buyers. | Service ChargeAmount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of a building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as maintenance charge. | |
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Telegraphic TransferThe electronic transfer of funds from one bank account to another.
Transfer Deed
Land Registry deed transferring ownership to a buyer. This will be prepared by the buyer’s solicitor. | Tenant A person who pays rent for the use of property or land. | Tenants in Common Tenants in common are treated as having a separate, distinctive share which will not automatically pass to the other person upon death but will instead go to his or her next of kin or to whoever it has been left to if there is a will. In these cases, it is usual to have a formal Deed between the parties to set out their wishes | TenureThe type of ownership, either freehold or leasehold. |
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UnderleaseA further lease of whole or part of a property granted by an existing tenant. | | | |
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VendorSeller. | | | |
