Jargon
We try not to use legal jargon but sometimes it is very difficult to avoid so we have included a list of words to help you understand the conveyancing process.
The word meanings within this list are basic and are subject to exceptions. They are not, nor are intended to be legal definitions of these words and are described within the context of a conveyancing transaction. If you come across these words during your transaction and are not sure of their meaning or affect - ask us for appropriate advice.
Click on a letter below to see all conveyancing terms that begin with that letter
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Absolute (Title)
A quailty of title granted by the Land Registry. This is the best one and it is guaranteed by the state.
Adverse Possession
The possession of property without the permission of the owner. If this continues for a sufficient time, not secretly but openly for all the world to see, but excluding others from its use the owner may be prevented from claiming it back.
Agreeement
Sometimes referred to as "the Contract". It is the legal agreement by which the seller agrees to sell the property to the Buyer for the purchase price. It sets out the main terms of what has been agreed such as description of the property, the names of the parties and the price. It also deals with the process if something goes wrong. Everything that is agreed or done before "exchange of contracts" (see below) is done or agreed "subject to contract". This means no matter how far you have got in the transaction, nothing is binding on either side until contracts are exchanged.
B
Bank Transfer
The electronic transfer of money from one bank account to another. Also referred to as a CHAPS payment. It is a quick and reliable method of transferring money the same day although it is not an instant transfer and the system can slow down at peak periods such as the Friday before a Bank Holiday.
Bankers Draft
A cheque drawn by a Bank and signed on behalf of the Bank by a manager or one of his authorised staff. It is treated as being equivalent to cash.
Bankruptcy Search
A search against each person who is lending money from a mortgage company to check that person is not or has not been made bankrupt previously.
Boundaries
Boundaries define the extent of the property and are usually marked out on the ground by fencing or hedging. Boundaries are often (not always) shown on the Land Registry plan.
Breach of Contract
A failure by someone who has entered into a contract to perform its terms.
Breach of Covenant
A failure to observe and perform a covenant that affects a property
Buy to Let
A term used to describe a purchase transaction where the purchaser is purchasing a property as an investment with the intention of letting the property to tenants on completion.
C
Caveat Emptor
Literally - "let the buyer beware". You should have a survey carried out before you purchase the property.
Chain
The term used when there are a number of people in the conveyancing process - the buyers and sellers that link together to make the chain. The chain may consist of only 2 people - ie you and your seller or buyer or it may consist of several buyers and sellers. The beginning of the chain usually starts with a first time buyer or a buyer with nothing to sell. The chain ends with someone who is buying a brand new home or not buying another property. Your sale or purchase can only proceed at the same pace as everyone in the chain unless someone agrees to break the chain - for examply by moving in with friends/family.
Charge (or Legal Charge)
In simple terms it's a mortgage. In not so simple terms, it is a legal document that creates a financial burden against property where the property has been used as security for the loan.
Completion Date
This is the date that the buyer pays the price for the property and the seller must move out, hand over they keys, hand over the deeds and a document transferring title to the buyer and pay off any mortgage that the seller had.
Completion Statement
The financial statement that is prepared by the conveyancer during a conveyancing matter setting out how much is due to or how much is due from a buyer and seller.
Contaminated Land
Land affected by contamination which could arise from a past use of the property or things stored on the property in the past.
Contract
Sometimes referred to as "the Agreement". It is the legal agreement by which the seller agrees to sell the property to the Buyer for the purchase price. It sets out the main terms of what has been agreed such as description of the property, the names of the parties and the price. It also deals with the process if something goes wrong. Everything that is agreed or done before "exchange of contracts" (see below) is done or agreed "subject to contract". This means no matter how far you have got in the transaction, nothing is binding on either side until contracts are exchanged.
Conveyancing
The description for dealing with the legal side of buying, selling, remortgaging or otherwise transferring ownership of property - for example checking title, carrying out searches and making sure a property has good title.
Covenant
A promise to do or not to do certain things on or with the property. A covenant can be "negative" eg "not to keep poultry on the property" or "positive" eg "to maintain a boundary".
D
Deposit
A sum of money paid by the buyer to the seller when contracts are exchanged. The amount of deposit should be 10% of the purchase price can be subject to negotiation. If a buyer pulls out of the transaction after contracts are exchanged, they will forfeit the deposit to the seller. If less than 10% deposit has been paid the buyer will also be liable to the seller for the balance of the 10%. The deposit is normally held by the seller's conveyancer until completion unless it is being used in connection with the seller's related purchase.
Disbursements
Costs payable to other companies such as The Land Registry, search providers.
Drainage Search
A search carried out with the sewerage and water provider. It will confirm whether the property is connected to mains water and sewerage and it should show where the nearest public sewers and water mains are. It will be included in the Seller's Home Information Pack.
E
Early Redemption Fee
A fee that you may have to pay to your lender when your mortgage is paid off on completion of the sale or remortgage of a property. It is a "penalty" fee for paying off the mortgage early.
Easement
An entitlement to exercise a right over someone else's land. Eg a right of way.
Energy Performance Certificate
An energy performance certificate, otherwise known as an EPC, provides an energy rating for a home. It is found in a Home Information Pack (HIP) which is required for homes sold in England and Wales.
The energy efficiency is displayed within the EPC as a graph, similar to those found on kitchen appliances. Ratings based on the performance of the building are shown on a scale of A-G, with A being the best rating. The graph is displayed on the particulars of the property.
The EPC also outlines some ideas which help to improve the building's performance. Implementing these can lead to lower energy bills, reduced carbon deposits and can make homes more attractive to potential buyers.
Environmental Search
A search carried out to check whether there is any record kept to suggest that the property may be affected by contamination.
Exchange Contracts
The formal exchanging of the 2 parts of the contract when the buyer and seller become legally bound to complete on an agreed date and in the case of the seller, to move out of the property.
F
Fensa Certificate
Since 1st April 2002 if a property has replacement windows fitted the owner either has to chose an installer registered with FENSA (Fenestration Self Assessment Scheme) or obtain a building regulation certificate.
Fittings and Contents Form
A standard form completed and supplied by a seller setting out all those items in the property which they have agreed to leave as part of the sale price.
Flying Freehold
A part of a freehold property which lies over land belonging to someone else.
Freehold
The absolute ownership of a property and the land on which it stands. It is used to describe a way to own land which runs forever.
Full Title Guarantee
A guarantee given to a purchaser confirming that the seller has the right to sell the property and that the property does not have any adverse rights or matters which have not been disclosed to the purchaser.
G
Ground Rent
Money usually paid annually to a Landlord, usually on leasehold property where there is a long lease. It can be as little as a peppercorn - ie nothing.
H
Homebuyers Survey & Valuation Report
A survey completed to a standard format set out by RICS (Royal Insitute of Chartered Surveyors). It does not deal with every aspect of the property and only focuses on urgent matters needing attention, unlike a full structural survey which is a more comprehensive survey.
Home Information Pack
A document containing information about a property that is currently for sale on the open market. As from 6 April 2009 it must be available before a property is place on the market for sale.
I
Indemnity Insurance
An insurance policy, usually requiring payment of a one off premium designed to protect the insured from a defect in title, such as lack of legal easement.
Index Map Search
A search carried out with the Land Registry to find out whether a property is registered with them.
J
Joint Tenants
Where two or more persons buy a property together they are called Joint Tenants or Tenants in Common. Where property is held as a Joint Tenancy if one owner dies the property automatically passes to the other without a will. The Land Registry would only need to see the death certificate in order to change the register of the property.
K
L
Land Registry
The official body responsible for recording the ownership of land.
Land Registry Fee
A fee payable to the Land Registry for updating the register of the title to the property following completion of the transaction.
Lease
A lease is a document which details the matters affecting a leasehold property. Typically these will include the length of the lease, rent, service charges, rights of way, water, drainage and access and it will usually incorporate a plan.
Leasehold
A method of owning property (usually a flat) for a fixed term but not the land on which it stands. Possession of the property will be subject to the payment of an annual ground rent. When the lease expires, ownership of the property reverts back to the freeholder.
Licensed Conveyancer
A Licensed Conveyancer is a specialist property lawyer - someone who is trained and qualified in all aspects of property law.
Limited Title Guarantee
Limited Title Guarantee confirms the seller’s legal right to sell the property but differs from Full Title Guarantee in that the seller cannot completely confirm the freedom from incumbrances and adverse rights usually due to the fact that the seller has never occupied the property and does not have personal knowledge of the property.
Local Search
This is a search made by on behalf of the buyer or in the case of a remortgage on behalf of the Lender. It covers items such as whether the road serving the property should be maintained by the council, whether there are planning applications on the property etc
M
Management Company
If the property is leasehold, there will often be a management company set up to deal with the day to day running of the property and repairs and renewals. The management company collect the service charge to pay for their services and for the upkeep and maintenance of the building.
Mining Search
A search carried out with the Coal Authority which asks about deep seam and open cast mining works in the locality of the property and any compensation claims made in relation to defects resulting from them. It also shows the location of any nearby old mine shafts.
Mortgage
A loan to help buy a house. The loan is secured on the property to prevent you selling the property without paying it off at the same time.
Mortgage Deed
This is the document the borrower signs to agree to the terms set out in the Mortgage Offer. This document is sent to the Land Registry who register the Mortgage as a Financial Charge on the property which is shown in the Charges Register. This is removed when the mortgage is repaid.
Mortgage Offer
A written offer to lend money on a property. The Mortgage Offer will contain all the terms of the Loan and the conditions upon which the money is loaned.
Mortgage Valuation Report
Most houses are bought with the assistance of a mortgage and the bank or building society will require a mortgage valuation report to be obtained. However, this is not a survey - it merely ensures that the property is of sufficient value to protect the lender's interest.
N
Negative Equity
Negative Equity is when a property’s value is lower than the total amount of all secured mortgage and loans. Funds will therefore be required from the owner of the property in order to complete the sale.
NHBC Buildmark Guarantee
This is a structural defects insurance guarantee issued by NHBC (The National House Building Council). It normally lasts for 10 years from completion of the build of the property and cover is on a sliding scale depending on when a claim is made. NHBC guarantees can be passed on to a new purchaser of a property which has the benefit of the guarantee.
Notice to Complete
This is a document served on a seller’s or buyer’s conveyancer by the other party’s conveyancer following failure to complete the property transaction on the completion date set out in the contract. It requires completion to be effected within a certain timescale otherwise the party serving the notice can rescind (withdraw) from the contract.
O
Occupiers Consent Form
This is a form that a non-owing occupier of a property may be asked to sign when the owner is taking up a mortgage on the property. The form acts as a waiver of the occupier's rights to occupy the property should the mortgage lender be required to repossess and sell the property.
Office Copies of Title and Plan
These are official copies of the register entries and plan held by the Land Registry.
Overriding Interests
Not all matters affecting a property are noted within the title. An overiding interest is some form of unregistered right that affects a property. Examples are hunting, shooting or fishing rights.
P
Party Boundary
A boundary owned jointly by both adjoining properties. If a boundary is a party boundary it is maintained at the joint expense of both parties.
Personal Representative
A Personal Representative is a term usually used to refer to the seller of a property when the legal owners have died. A Personal Representative may be an executor of the deceased's estate as appointed under the terms of the Will of the deceased property owner or where a property owner has died intestate (without making a valid Will).
Possessory Title
Possessory Title is an award of title given to a property or piece of land most often when the ownership of the land has been proved by adverse possession or in cases when the (unregistered) title deeds to the property have been lost or destroyed.
Power of Attorney
A document by which someone appoints another person to act as their attorney. It can give wide or limited powers - eg an attorney may be given power to deal with all aspects of a persons affairs or just deal with the sale of a particular property.
Pre completion searches
These searches include a search carried out at the Land Registry which acts to freeze the register in favour of the party named in the search. If mortgage finance is being used to assist with a purchase bankruptcy searches are also carried out against the borrowers.
Property Information Form
A standard questionnaire completed by a Seller to give information about the property to the Buyer (e.g. who maintains boundaries and whether there have been any disputes).
Proprietor
The Proprietor is the current registered owner of land or property as shown in the Official Copy Register Entries.
Q
R
Redeem
To pay off a loan or mortgage.
Redemption
The repayment of an existing mortgage or loan.
Redemption Statement
A statement supplied by a lender detailing the outstanding amount required in order to fully repay a mortgage or loan.
Registered Land
Property which has been registered at the Land Registry.
Registration
The process of registering a change of ownership, first registration of land or property or registration of rights notices restrictions or charges against a property’s title.
Remortgage
A transaction involving the redemption (repayment) of the current mortgage and taking out of a new mortgage. Remortgages are usually used to get a better deal from the new lender or to to raise funds by increasing the size of the mortgage.
Rescission
The formal ending of a contract following service of a notice to complete.
Restrictive Covenants
Legally binding promises that are contained in a contract or deed relating to property whereby someone agrees not to do something (such as keep pigs at the property!).
Retention
A sum of money held back, such as money withheld by a buyer or lender until certain works have been undertaken to a property.
S
Share Certificate
A document that confirms ownership of a share or shares in a company such as a Management Company that maintains the common areas of a building or estate in which a leasehold property is situated.
Sinking Fund
This usually relates to leasehold transactions and refers to an amount held in reserve by a management company or landlord providing funds for major works of repair and maintenance that may be required to the common parts of a building or estate.
SMS UPdates
SMS stands for Short Messaging Service. We will be able to keep you updated each step of the way regarding your conveyancing. Each and every time a key step in your conveyancing is completed you will receive a message on your mobile informing you of this keeping you always updated.
Dean Conveyancing will be providing this service soon.
Stamp Duty Land Tax
A government tax payable on completion of the purchase of a property over a certain value.
Stock Transfer Form
This is a form usually signed by a seller which is to be handed over to the buyer on completion of the sale in order that the seller's share held in a management company can be transferred to the new owner.
Subject to Contract
A term used referring to a conveyancing transaction that has yet to reach formal exchange of contracts and is still subject to exchange of conveyancing contracts.
Survey
This a report carried out by a surveyor on the physical state of the property you are buying.
If you are buying a property you should be aware that the property is "sold as seen". It is for you, as the buyer, to discover any physical defects by means of inspections and surveys.
Telegraphic Transfer
The electronic transfer of money from one bank account to another. Also referred to as a CHAPS payment. It is a quick and realiable method of transferring money the same day although it is not an instant transfer and the system can slow down at peak periods such as the Friday before a Bank Holiday.
Tenants in Common
Each owner of a property owns a precise and specified share of the property and each is free to leave their share of the property by Will to whomever they choose. If the property is held as Tenants in Common, you must be specific about the proportions of ownership e.g. Owner A is to own 30% and owner B is to own 70%.
Title Deeds
Documents which establish ownership and confirm the Owner's title to the property
Transfer Deed
A document which actually transfers ownership of a property from one person to another (as opposed to a Contract which may include an obligation to effect a transfer at a later date).
Transfer of Equity
A document transferring ownership of a part share or interest in a property from one person to another
U
Undervalue Transaction
A term used to describe a transaction where the sale price of a property is less than the actual market value of the property. The term can include Deeds of Gift.
A transaction at undervalue could be open to a future Trustee in Bankruptcy applying for the undervalue transaction to be set aside within five years of the transfer being made. This means that should the party selling at undervalue suffer financial difficulty involving bankruptcy within five years of completion of the sale, the sale transaction could be set aside.
Undertaking
A legally enforceable promise given in writing by a Solicitor or Licensed Conveyancer to do or provide something.
Unregistered Title
A title to a property which has not been registered at the Land Registry. The title will consist of old style conveyances and other documents
V
Vacant Possession
A Seller required to give vacant possession must (on completion) leave the property (including the garden and outhouses) empty of people, possessions and rubbish
Valuation
A very simple form of survey designed to establish what the property is worth and nothing more
W
Wayleave Agreement
A written agreement entered into with an owner of a property to give a service provider (eg electricity company) a right for their cables or other services to pass under or over the property.
Web Tracker
Using Web Tracking, you can track the progress of your conveyancing over the web wherever you may be. This service is available 24 hours a day all year round. As further stages of your conveyancing are completed, the data is updated simultaneously to keep you informed of exactly what has been done
This service at Dean Conveyancing is coming soon.
X
Y
Z