Chartered surveyor
A RICS (Royal Institute of Chartered Surveyors) qualified surveyor who is entitled to carry out a survey on a property.
Completion date
This is when ownership of the property passes from buyer to seller. Usually it is after exchange, though simultaneous exchange and completion is possible.
Contract
This sets out the terms of the sale between buyer and seller. It is drawn up by the seller’s solicitor and will then be negotiated.
Deposit
Not the same as the deposit you agree to put down with your lender when you take out a mortgage. In the context of conveyancing, the deposit is the amount (typically 5 – 10%) paid by the buyer upon exchange of contracts. Once exchange has taken place the contract becomes legally binding and if the buyer fails to complete they may lose their deposit (unless they signed the contract because they were misled).
Disbursements
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.
Environmental search
This looks at whether the property may be affected by things like flooding, landfill, waste disposal, contaminated land, etc.
Exchange
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
A form prepared by the seller setting out what fixtures and fittings (e.g., curtains, electrical appliances) are included in the sale, which ones may be included and at what 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.
Freehold
When the property is sold together with the land on which it is built.
HIP
Home Information Pack containing information and search results for the property. HIPs are now compulsory and you are required to have a HIP before you market your property (some documents can be added up to 28 days after marketing starts).
Indemnity contribution
Insurance taken out by solicitors to protect their clients in the event of mistakes or fraud when dealing with their case (and usually charged to the client).
Land Registry
The Land Registry keeps records of land ownership. When a property is sold it is the buyer’s solicitor’s job to make sure that the transfer is recorded at the Land Registry.
Leasehold
A leaseholder owns the propertyonly for the term of the lease and does not own the land on which it stands, which is owned by the freeholder. Once the lease ends ownership of the property passes back to the leaseholder.
Local authority search
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.
Check the area covered by the local authority search. If it only covers a limited area you may want to ask for additional enquiries.
Mortgage
The loan to the buyer for the purchase of the property. A mortgaged property cannot be sold until the mortgage is paid off (either at the end of its term or, when selling, by using proceeds from the sale to pay off the remainder).
Mortgage deed
This is a legal document that gives the mortgage lender rights over the property while the mortgage is being repaid.
Mortgage fees
Fees charged by conveyancing solicitors for acting on behalf of their client’s bank or building society.
Mortgage valuation
Before your bank or building society before they will lend on a property they will have a valuation survey dont. This is to make sure that the property is worth at least the amount they are proposing to lend. It is not the same as a property survey carried out by a Chartered Surveyor – see Surveys.
Property information form
A questionnaire to be completed by the seller covering basic information about the property. The seller is legally obliged to answer the questions honestly.
Redemption fee
Some banks will charge a redemption fee for paying off a mortgage early or within a certain number of years of taking it out.
Redemption payment
The payment made in order to pay off the outstanding balance of a mortgage.
SDLT
Stamp Duty Land Tax – see Stamp Duty
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.
Surveys
A Chartered Surveyor will carry out a property survey at the request of the buyer. This can look at various things such as the structure of the building and is value. Depending on the kind of surveys costs vary significantly. (Not the same as the valuation survey carried out by a lender.)
Title deeds
Documents that prove ownership of a property and set out any rights or obligations affecting the property. If the property is still mortgaged they will be held by the lender.
Transfer deed
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.
Water and drainage search
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.
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