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 2% for homes priced between £125,001 and £250,000. The rate is 5% for homes between £250,001 and £925,000. The rate is 10% for homes between £925,001 and £1.5m. For homes over £1.5m the rate is 12%. If the property is being sold for less than £125,000, no stamp duty is payment is required.
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.