House Buying Jargon
House buying jargon buster: Help at last for home buyers
Please read our exclusive list of house buying jargon. If you have any home buying questions or have more property purchasing jargon to add please feel free to contact us.
- What is a Chain? : Where the homebuyer and the home seller depend on each other to complete a house move.
- What is the Completion date? : The date when all transactions relating to the sale of a house are completed. Only when all contracts have been exchanged can you confidently set a date to move. Forcing an early completion date to hurry up the legal process can often lead to frustration, especially when you are in a chain.
- What is the Completion statement? : A statement from the house buyer / buyers solicitor detailing how the house buyer should pay. The statement includes the house sales price plus all other costs.
- What are the Conditions of Sale?: The terms by which the buyer and seller determine their rights.
- What is the Contract? : The legally binding agreement specifying all of the detail of the house sale or house purchase. The contract legally commits both the buyer and the seller to the transaction. The house seller’s conveyancing lawyer draws up two copies of the same contract, and each party signs their own copy. When both parties are ready to legally commit, the two contracts are exchanged.
- What is a Conveyancer?: The Property Lawyer who manages all of the matters arising from the sale of a house or the purchase of a house. Can be a Solicitor or a Licensed Conveyancer.
- What is Conveyancing?: The legally binding document that transfers the rights to land or property.
- Who are the Council for Licensed Conveyancing?: A regulatory body for the Conveyancing industry whose mission is “To maintain a regulatory environment in which the public is protected, Licensed Conveyancers can prosper and market competition thrives.”
- What are Deeds?: Legal title document which provides ownership held by the mortgage lender. Released on full repayment of the loan.
- What is the Deposit?: Often the deposit is thought of as the part of the purchase price that the buyer is putting down him/herself (i.e. usually the difference between the amount of the mortgage and the purchase price). When conveyancing lawyers talk about the deposit they are talking about the money that is handed over to the seller’s conveyancing lawyer upon exchange of contracts. This often these two amounts are not the same.
- What are Disbursements?: Fees paid by the Solicitor / Licensed Conveyancer on the buyers behalf such as stamp duties, land registry charges and search fees.
- What does Exchange of contract mean?: The signing of the contract by the house buyer and the house seller. This is the point that both parties are committed to the transaction.
- What does Fixtures and Fittings mean?: A list of the items at the property, which are either included or excluded from the agreed price. If you are the seller.
- What is a Freehold?: Ownership of the land which houses are built.
- Who are the FSA?: The financial Services Authority is an independent government body concerned with consumer protection in the financial market.
- What is Gazumping?: When the house seller accepts a higher price offer from another house buyer after the initial offer has been accepted.
- What is Gazundering?: When the house buyer lowers his offer after the sale has been agreed.
- What is Indemnity insurance?: An insurance taken out by conveyancing firms to cover losses to clients arising from errors or fraud in dealing with their matters.
- What are Land registry fees?: Fees paid by your conveyancing lawyer on the buyer’s behalf to register the ownership of property with the Land Registry.
- What is the Land Registry?: The official body responsible for recording the ownership of land. They register all land and property transactions in the UK.
- What is Leasehold?: The ownership of property for a specified period in return for a rental payment subject to terms and conditions.
- What is a Licensed Conveyancer?: A Licensed Conveyancer is a specialist property lawyer, someone who is trained and qualified in all aspects of the law dealing with property. Licensed conveyancers are sufficient to secure adequate protection for consumers and that the conveyancing services provided by such persons are provided both economically and efficiently.
- What is a Mortgage Deed?: The legal charge to the mortgage lender until such time as the loan is repaid.
- What are Mortgage Fees?: Normally charged by your conveyancing lawyer for acting on behalf of your bank or building society.
- What is a Mortgage?: A loan to help you buy your house. The mortgage is attached to your title deeds to prevent you selling the property without paying it off at the same time.
- What is a Redemption Fee?: A penalty which can be incurred by your existing mortgage lender if you pay off your mortgage early or your move to a different mortgage.
- What does Searches mean?: A method of checking matters that may affect the status of the property. Local Authority Searches cover items such as road maintenance, planning applications etc. The search covers the property not the surrounding area.
- What is and how much is Stamp duty?: A government tax payable by every homebuyer of a property over £60k. Duty is charged at 1% for homes priced between £60k and £250k. The rate is 3% for homes over £250k but not more than £500k. For homes over £500k the rate is 4%.
- What is a Structural survey?: A survey giving details about the property’s structure.
- What does sold Subject to contract mean?: A provisional agreement between the house buyer and the house seller that is not legally binding.
