Legal jargon
A RICS (Royal Institute of Chartered Surveyors) qualified surveyor who is entitled to carry out a survey on a property.
The date on which the ownership of the property passes from buyer to seller. Usually this happens some time after exchange, though it is possible to have simultaneous exchange and completion.
This is a financial statement that sets out all the costs of buying your new property. It also shows you the balance that you will need to pay (via your conveyancing solicitor) to complete your purchase.
The agreement setting out the terms of the sale between buyer and seller. This will be drawn up by the seller’s solicitor, but will be subject to negotiations before being agreed.
This is a set of documents prepared by the seller’s solicitor and sent to the buyer’s solicitor so they can investigate the property. It will include: the draft contract; title deeds; property information form; fixtures, fittings and contents form; any building guarantees; any planning consents; and, the leasehold management information (for leasehold properties only).
Not to be confused with the deposit that you agree to put down when you take out a mortgage. In the context of conveyancing, the deposit is the amount (usually 5 – 10%) paid by the buyer to the seller upon exchange of contracts. Once exchange has taken place the contract is a legally binding document and if the buyer fails to complete then they may forfeit their deposit (unless they were misled into signing the contract).
This is the fancy terms for “expenses” used by solicitors. Disbursements will include things like search fees and land registry fees. Check that disbursements are included in your quote (most are known in advance) otherwise your bill could be a lot higher than you expect.
A search carried out to check whether the property may be affected by things like flooding, landfill, waste disposal, contaminated land, etc.
The exchange of contracts between buyer and seller. Once exchange has taken place the contract is legally binding and if the buyer fails to complete then they may forfeit their deposit (unless they were misled into signing the contract).
Fixtures, fittings and contents form
This is a form prepared by the seller setting out what fixtures and fittings are included in the sale, which ones may be included at a specified price and which ones are negotiable. It may be included in the HIP, but does not have to be and can be given after an offer has been made.
When the owner of the property also owns the land on which it is built.
Home Information Pack containing basic information and search results for the property. Since 6th April 2009 HIPs have been compulsory and you are required to have a HIP before you market your property (though some documents can be added later as long as it’s within 28 days of commencing marketing). Click here for a free HIP quote.
Solicitors are required to take out insurance to protect their clients in the event of mistakes or fraud when dealing with their case. Usually this fee is charged to the client.
The Land Registry record who owns what land. When a property changes hands the buyer’s solicitor will make sure that this transfer is recorded at the Land Registry.
A leaseholder owns the property, but not the land on which it stands, which is owned by the freeholder. Once the lease expires ownership of the property reverts back to the leaseholder.
A search that asks the local authority about things that may affect the property, such as: whether the road the property stands on is maintained by the council; planning applications that may affect the property; possible planning restrictions; and rights of way.
It’s important to check what area the local authority search covers. If it only covers a limited area you may want to ask for additional enquiries.
This is the loan used to buy a property. Because it is linked to the property being bought the property cannot be sold until the mortgage is paid off (either at the end of its term or, if you are selling, by using proceeds from the sale to pay off the balance).
The legal charge that gives the mortgage lender rights over the property until the mortgage has been repaid.
Fees charged by conveyancing solicitors for acting on behalf of their client’s bank or building society.
This is the valuation survey carried out by your bank or building society before they will lend on a property. It is to make sure that the property is worth at least the amount they are proposing to lend. It should not be confused with a property survey (of which there are different kinds) carried out by a Chartered Surveyor – see Surveys.
Also known as “office copy entries”, these are official copies of the title deeds taken from the land register and issued by the Land Registry. The buyer’s solicitor will review two sets of office copies. The first as part of his report on the property to the buyer. The second immediately prior to completion (see pre-completion searches) to check that the seller still owns the property.
These are searches carried out by the buyer’s solicitor immediately prior to completion:
- They will do a bankrupcy search to check that the buyer hasn’t been declared bankrupt since their mortgage was approved.
- They will also order a second set of office copies to check that the property is still owned by the seller (this is for the buyer’s protection).
A questionnaire to be completed by the seller covering basic information about the property. The seller is legally obliged to answer the questions honestly.
Some banks will charge a redemption fee for paying off a mortgage early or within a certain number of years of taking it out.
The payment made in order to pay off the outstanding balance of a mortgage.
Stamp Duty Land Tax – see Stamp Duty
Also known as Stamp Duty Land Tax (SDLT). This is the tax charged by the government for buying a property and is usually paid by the buyer. The amount varies depending on the value of the property.
Not to be confused with a valuation survey carried out by a lender. A property survey is carried out by a Chartered Surveyor and can look at various things such as the structure of the building and is value. There are different kinds of surveys and their costs vary significantly. Click here for free Chartered Surveyor quotes.
The documents that prove ownership of a property and which set out any rights or obligations affecting the property. If the property is mortgaged then the deeds will be held by the mortgage lender.
This document (referred to as a TR1) transfers ownership of the property from the seller to the buyer. It will be prepared by the buyer’s solicitor after completion and sent to the Land Registry so the transaction can be recorded.
A search to check whether the property is connected to the water supply and sewerage system and how the property is billed for its water and sewerage services.