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Often when buying your first house, it can seem like your Solicitor and Estate Agents are talking to you in a different language. We understand the importance of you understanding the process and have produced the following list to help you to understand some of the more common terms you will hear during the conveyancing process.
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The Land Registry form prepared by the buyers solicitor which transfers ownership of the property to the buyer.
Another pre-Exchange search, which is carried out with the Water supply company to establish that the property has mains drainage and water. It is useful to establish whether there are any lengths of private drain, pumping stations, etc which might not be obvious from inspection but for which the buyer might be liable.
The total amount lent by a lender under a mortgage. This might vary from the amount of the actual cheque as lenders often make deductions from it.
Report carried out by a surveyor upon the physical condition of a property. There are several different kinds of report, depending on the detail the buyer wishes to have. Where the buyer is purchasing with a mortgage then the lender will require a mortgage valuation. This is only a surveyors opinion as to the current market value of the property and is intended simply to ensure that the lender is not lending more than an acceptable proportion of the value of the property. See our Legal Services section for more detail, but we would always recommend a Homebuyers report prepared by a qualified surveyor which will provide a more detailed opinion of the property and will consider not just the value of the property but also the general condition of the property and any remedial work which may be needed. It will also provide an indication as to whether any further enquiries should be made. In some circumstances a full structural survey may be needed; this is the most detailed but also the most expensive.
The body which records details of all land in England and Wales and keeps a record of transactions affecting land and details such as its current owners and any mortgages or restrictions on it. Not all land details are currently recorded at the Land Registry as it has not until quite recently been compulsory to register land on a transfer of ownership. The Land Register is now open to the public and anyone may inspect it on payment of a fee.
Formal name for the process by which the ownership of land is transferred from one person to another.
Form asking the Coal Authority about deep seam and opencast mining works in the locality of the property and any compensation claims made in relation to defects resulting from them. Also shows the location of any nearby old mineshafts, which are quite common in some areas.
A loan made to a buyer to assist with the purchase price. Contracts should never be exchanged until a satisfactory mortgage offer is received, if the buyer needs one.
The tax payable by the buyer of a property to the Government. The tax payable is calculated as a percentage of the total purchase price of the property. At the moment, if the price is above £125,000 (and you are not in an exempt area) you pay 1% of the total price; this goes up above £250,000.
Official copies of the Land Registry's entries for the property, needed to prove the seller's ownership.
Standard form of enquiries of the Local Authority to find out amongst other things whether or not the property is likely to be affected by Tree Preservation Orders, Smoke Control Orders, Demolition Orders and others. In addition the search will reveal details of any Planning Applications relating to the property, if the property is in a conservation area and also whether the roads serving the property are adopted or are the responsibility of the owners.
Fee payable to the Land Registry to register the buyer as the new owner of the property and/or to register a new mortgage.
The point at which the contract signed by the seller is exchanged for the contract signed by the buyer and the deposit paid to the seller's solicitors. When exchange of contracts takes place both the seller and the buyer are legally committed to complete the transaction on the agreed completion day at the agreed price. Neither can pull out without serious legal and financial consequences.
The highest form of ownership. A 'freeholder' may create leases in favour of other people or sell the property without usually needing the consent of anyone. There is no time limit on a freehold; in theory the 'freeholder' and his heirs own the property forever.
Searches made to ensure that no changes have been made to the Land Register nor any mortgages created by the seller which have not been disclosed to the buyer.
The form completed by the seller to set out which fixtures, fittings and contents at the property are included in the sale. This form will also set out detail of any items which are not included in the sale which the seller may be prepared to sell.
The sum paid by the buyer to the seller when exchange of contracts takes place (technically 10% of the sale price but may be less if agreed).
There has recently been a case decided by the Courts whereby a Church relied upon a covenant made in medieval times by the then owner/occupier of a property whereby the present owner/occupier had to pay a sum of £95,000.00 to a Church towards its maintenance. We therefore undertake a Chancel Check Search on all purchases to ascertain whether or not your property is at risk. If the Search shows that the property is at risk, then we will advise the Seller’s Solicitors and request your Seller to pay Indemnity Insurance against the event that a Church could in the future request monies to maintain it.
A pre-exchange search which shows any potential contamination or past industrial use of the land which might be the owner's responsibility to clear up.
The date when the property is transferred by the seller to the buyer. On the day agreed for completion set by the contract the buyers solicitors will pay to the sellers solicitors the balance of the purchase price (taking into account any deposit already paid) and the sellers solicitors will provide to the buyer the transfer document and the title deeds to the property. The Completion Day is the day when the seller must move out and the buyer is entitled to move in.
Formal enquiry made by the buyers solicitor on behalf of the lender to ensure that the buyer is not bankrupt. This is usually done just before completion.