Glossary Of Terms

Additional Enquiries:
Additional questions asked by your buyer's Property Lawyer. These questions may be about any aspect of your transaction

Bankruptcy Search Fees
This search is undertaken by your conveyancer in accordance with your mortgage offer. This is charged at £2 per person.

Chain
Where you may be buying a property as well as selling, and your buyers/sellers are doing the same, this is known as a chain. A series of transactions all dependent upon each other must be synchronised by the Property Lawyers upon exchange of contracts

Completion Date
The date when the transaction is completed and the title to the property legally passes to the buyer

Completion (financial) Statement
After exchange of contracts and before completion you will receive a completion/financial statement showing a summarised account of all the financial elements of the transaction. This statement will also request from you any outstanding fees that are required before completion.

Contract
This is a legal agreement that will set out the terms of the transaction. Once signed and exchanged this contract binds all parties to the sale/purchase of the property.

Conveyancing
This is the legal work necessary to transfer ownership of a property from one party to another.

Conveyancing Fees
The fees payable to the conveyancing lawyers you have chosen to undertake the legalities of the move.

Covenant
A legal obligation imposed in a deed by the seller upon the buyer of real estate to do or not to do something.

Deed of Covenant
A deed of covenant is an agreement where a buyer of a property agrees to comply with the rules and conditions affecting the property as set out in the lease.

Deed of Variation
A document that changes the terms of an existing agreement,.

Disbursements
Expenses paid by the Property Lawyer on your behalf to a third party e.g. Stamp duty and Search fees

Draft Contract
A legal document setting out the terms and conditions of the transaction

Early Redemption Charge
A fee charged by some lenders for paying off your mortgage early

Easement
An easement is a right given to another person or entity to trespass upon land that person or entity does not own. Easements are used for rights of way, for example or given to utility companies for the right to bury cables or access utility lines

Energy Performance Certificate
A certificate that is legally required to sell your house. This assesses the energy efficiency of the property in question along with the environmental impact based on the properties CO2 emissions

Engrossment
The final copy of a document in agreed terms

Environmental Search
A check carried out to ensure that there are no environmental issues affecting the property, e.g. risk of flooding, contamination or pollution

EPC
See Energy Performance Certificate (above)

Exchange Contracts
Once the terms of the contract have been agreed upon by both parties they are signed and the sale/purchase becomes legally binding

Fixtures and Fittings
A list of all items in the property that are or are not included in the sale

Freehold
Ownership of land and the buildings on such land (as opposed to a leasehold estate where property reverts to the owner when the lease expires)

Gazumping
The term used when the seller of a property accepts a higher offer despite having already accepted a lower offer from another potential buyer

Gazundering
The term used when a buyer replaces an initial accepted offer with a lower offer. This can happen just before exchange of contracts

Professional Indemnity Insurance
Insurance provided by the Property Lawyer to protect you against financial loss resulting from its negligence

Joint Tenants
Under this agreement, two people can buy a property equally together with no one person having more of a share than the other. If one of the owners dies the surviving partner becomes sole owner. (For an alternative agreement see tenants in common)

Land Registry
Government department that registers the ownership of land and property in England and Wales

Land Registry Registration Fee
On completion the transaction must be registered at the Land Registry. This is charged by the Land Registry and will be paid directly to them on your behalf.

Land Registry Fees
The cost of registering the title to a property with the Land Registry

Land Registry Official Copies
These are copies of the title deeds are held at the Land Registry. Disbursement costs may increase if additional documents are required to facilitate your transaction.

Leasehold
Ownership of a property (usually a flat) over a specific period of time. Upon expiry of the term granted by the lease, the ownership of the property reverts back to the freeholder

Local Authority Search
Records searched of the Local Authority relating to matters such as planning permissions, road proposals, environmental health, tree preservation orders, compulsory purchase orders and highway adoption that may affect the subject property

Stamp Duty Land Tax
This is government tax payable on all transactions over £125,000. You will be entitled to claim relief in the event that all purchasers are first time buyers, purchasing a property for £250,000 or less provided that completion takes place between 25th March 2010 and 25th March 2012. Your conveyancer will be able to provide you with further information in this respect.

Mortgage
Loan to help you buy the property. This is secured against the property to ensure that the property cannot be sold without repayment of the loan

Mortgage Indemnity Policy
A policy that insures the lender against financial loss arising from repossession

Official Copies
Certified copies from the Land Registry of the entries on a registered title

Redemption
When the mortgage is paid off

Remortgage
When you pay your mortgage off in full and take out another mortgage on the same property

Retention
When monies are retained by a lender subject to certain conditions being met, e.g. repairs or improvements to the property

Search Fees
This search is undertaken by your conveyancer to protect your interests between completion and registration at the Land Registry.

Stamp Duty
When purchasing a property over a certain value you are required to pay property tax (stamp duty) to the government. For current stamp duty rates please visit www.inlandrevenue.gov.uk.

Subject to Contract
Negotiations between a buyer and a seller prior to exchange of contracts are not legally binding

Tenants in Common
Under this agreement each of the owners has a specific share in the property. If one of the owners dies, their share would pass with the remainder of their estate. This type of agreement is normally taken out when friends are purchasing a property together

The Search Bundle
This is required by your Mortgage Lender and includes the Local Authority Search, Water and Drainage and Environmental Search.

Title Deeds
Documents providing proof of title/ownership of a property

Tenure
Freehold or leasehold. (See above for definition).

Transfer Deed
The document transferring title/ownership of the property from the seller to the buyer

Telegraphic Transfer
The transfer of monies from the buyer of the property to the seller electronically through the banking system

Vendor
The person selling a property

Water and Drainage Search
A search carried out to check whether the property is connected to the mains drainage and the mains water supply. This is provided by various local water companies in England and Wales.