Jargon Buster

If you are unsure about certain property phrases, then our Jargon Buster will explain some key expressions so that you can become familiar with these once complicated property terms.

Chain:  The line of buyers and sellers who are all involved in linked property transactions. A break in the chain can affect the sale of properties further down and either hold them up or even fail completely.

Chain Free: The purchase of the next home is not reliant on a property transaction involved in the buyer or seller.

Completion Date: This is the day that you gain ownership of your property and all of the conditions of the mortgage come into effect.

Completion Statement: A letter from your property solicitor that details all of the finances involved within your property move.

Conditions of Sale: The conditions that are agreed upon by the buyer and seller ahead of the conclusion of the property transaction.

Contract:  A legal document that outlines the important and specific details of the purchase. The contracts will need to be exchanged to finalise the transaction.

Conveyancer:  A property lawyer that manages all of the legal features behind the property move.

Conveyance or Transfer: The rights of the land and property are transferred over to the new owner through a legal document.

Council for Licensed Conveyancers: This governing body is one that conveyancing lawyers should be registered with.

Deeds: The history of the property provided through this document.
Deposit: Although the majority of the property will be funded by the mortgage, this sum of money will be required before the contracts are exchanged.

Disbursements: Additional expenses such as search fees and stamp duty.

Equity: The amount of the property that you essentially own, in comparison to the amount that you owe to your mortgage lender.

Exchange of Contract: The transaction completion that both parties are legally obliged too.

Fixtures and Fittings: An entire list of items included with the property.

Flexible Mortgage: Some mortgages can be flexible in the conditions of how you pay the loan back.

FSA:  The Financial Services Authority is an independent governing regulator that looks at protecting customers with their finances.

Gazumping: The seller of the property accepts a higher offer for the property, despite your offer already being accepted.

Indemnity Insurance: Conveyancing companies can take out a policy that covers losses.

Leasehold: An agreement that allows a landlord to own a property and then let it out to a tenant.

Licensed Conveyancer: Typically a lawyer who specialises in property, the licensed conveyancer is trained in all the legalities behind a home move.
Mortgage: To help fund the purchase of the property, money must be borrowed from a lender.

Mortgage Deed: A document that gives you the legal right to own the property.

Mortgage Fees: Your financial advisor will charge you this for his services in organising the mortgage through a lender.

Redemption Fee: If you decide to amend or cancel your existing mortgage contract, then you could be charged with a fee. If you decide to switch mortgage provider then this can also apply.

Searches: There are a number of different searches available to check the value of the property. The only essential one is the Local Authority Search, which will cover planning applications etc.

Stamp Duty: A government tax payable by every home buyer when purchasing a property over £125,000. Duty is charged at 1% for homes priced between £125,001 and £250,000. The rate is 3% for homes between £250,001 and £500,000. For homes over £500,000, the rate is 4%. And for properties above £1,000,000 5%.  If the property is being sold for less than £125,000, no stamp duty is payment is required. First-time buyers can secure a two-year temporary stamp duty relief up to £250,000, from 25 March 2010.

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Survey: A survey determines if the property in question is structurally satisfactory, this is produced by the building surveyor.

Subject to Contract: A legal agreement that is not legally binding, which is made between the house buyer and seller to organise the transaction completion.

Transfer Document: The document that finalises the move and officially passes the title of the property onto the buyer.

Valuation Survey:  Typically this is for the purpose of securing a mortgage, as this survey establishes the value of the property.

whitehot Property: Properties that are chain-free made available from corporate institutions. Typically priced for a hasty sale, these properties are often part-exchanges, repossessions or probate housing.