Conveyancing

Jargon Buster

Absolute tite
The vast majority of properties are registered at the Land Registry with absolute title and this is the best title you can have to your property.

Apportionment
On the sale or purchase of a leasehold property the service charges and ground rent are apportioned between the buyer and seller up to the date of completion. Which means you only pay for the services to the property when you own it.

Assent
Transfer of property following the death of an owner.

Building Regulations
All building work is required to comply with the Building Regulations even if the work does not require planning permission. Building Regulations covers matters such as health and safety and fire risks. The local authority is responsible for approving and inspecting anything which requires building regulation consent.

Buildings Insurance
Must be ready to be placed ‘on risk’ at exchange of contracts. Once contracts have been exchanged you are legally committed to purchase the property and you must ensure that the property is adequately insured in case anything happens between exchange and completion.
If you are purchasing a new property from a builder or a leasehold property such as a flat this may not apply.

Chancel Search
Some properties fall within a parish which may have a potential liability to contribute towards the repairs of the local church. If you are buying a property we will carry out a search to establish whether your purchase property is in a parish which may be affected and advise you accordingly.

Cleared Funds
Money paid to us for a deposit or as a balance in readiness for completion must be in cleared funds before we are able to pay money out. A cheque will take 7 days to clear. It's often better and quicker to arrange for a direct transfer from your bank account to our account to avoid delays.

Completion Date
Moving house day. This is the day when the monies are transferred and you collect you keys for your new property and/or hand over the keys for your current property.

Contract
The agreement between yourself and your buyer or seller. It confirms the details of the property and the price being paid and any other relevant terms and conditions.

Deposit
This is the money that is paid by the buyer to the seller when contracts are exchanged. It is a part payment  towards the price of the property and is held by the solicitors until the completion date.

Disbursement
Some costs are required to be paid to third parties such as the local authority or the land registry and these come under the heading of disbursements.

Exchange of Contracts
Once contracts have been exchanged your sale and/or purchase is legally binding and the deposit monies are handed over and the completion date is fixed. Until contracts are exchanged either party is free to withdraw from the transaction.

Fixtures & Fittings List
This list provides details of the items the seller will be leaving at the property included in the price and those which will be removed. Sometimes a seller may be prepared to sell certain items to the buyer and these items will also be listed.

Freehold
Absolute legal ownership of both the property and the land the property stands on.

Ground Rent
When buying a leasehold property you will be required to make a payment to the person who owns the freehold or the management company every year. The amount payable can range from a peppercorn to several hundred pounds per year.

HM Land Registry
Once you have completed the purchase of your property your ownership will be registered at the Land Registry

Identification
In order to comply with the Money Laundering Regulations we are required to obtain confirmation of your identification. This will normally mean that you need to provide us with the original of your passport or driving licence (both parts) and also a utility bill or bank statement showing your address which must be less than 3 months old.

Joint Tenants
The property is owned jointly so that all the owners have an equal interest in the property. If one owner dies then the survivor/s will automatically own the whole of the property. Please also see tenants in common.

Keys
The keys will not be released to the buyer of a property until such time as the monies have been received in the bank account of the solicitors acting on behalf of the seller. This is normally around lunchtime but will be dependent upon the number of parties in the chain.

Land Registry Fees
A government department which maintains and updates the title deed records for England and Wales.The Land Registry make a charge for supplying copies of documents held by them and for dealing with various registrations, for instance registering a change of ownership or mortgage.

Leasehold
Ownership of a property, usually a flat, within a larger building, for a set period of time where the building and the land it stands on are owned by a landlord or freeholder.
 
Local Search
This contains certain information held by the local authority in respect of the property with regard to planning, building regulations, roads and road schemes. It does not however provide details regarding any planning applications affecting adjoining  properties or land.

Mortgage Offer
Written detailed confirmation from your lender of the terms on which they have agreed to lend you the money. It will also provide details of any conditions which need to be complied with before the monies can be released.

Management Company
Will often organise the maintenance, repair and insurance of leasehold properties. Service charges are often paid to them or the managing agents who act on their behalf and who collect the monies for them. Sometimes owners of flats may also have a share in the management company.

NHBC
New properties bought from large developers will normally have an NHBC guarantee. This lasts for ten years and covers some structural defects.

Negative Equity
This is when the sale price of the property is not sufficient to repay the mortgage secured on the property and other costs associated with the sale of the property such as estate agents and solicitors fees.

Official Copies 
These are up to date copies of documents from the Land Registry, such as title deeds.

Planning Permission
Permission granted by the local authority to carry out improvements or developments on a property e.g. to build an extension. The requirements in respect of properties within a conservation area or listed buildings are stricter.

Property Information Forms
These are completed by the seller and provide further information about the property such as details regarding any guarantees for the property and service providers.

Questions
We will raise enquiries based on the results of the searches and documents received from the seller's solicitors. If there is anything specific which you wish us to raise or you have any queries regarding your matter in general then please just let us know.

Quote 
We are happy to provide you with a free no obligation quotation in respect of your matter, just contact us.

Redemption Statement
We will obtain a statement from your mortgage lender/s at the start of your transaction. This will provide details of the amount which will need to be paid to your lender and will include any redemption penalties and other charges.

Restrictive Covenants
These are covenants which restrict your use of the property and which you will be required to comply with as any owner. For instance only using the property as a private residence.

Stamp Duty Land Tax
Stamp duty is payable on all transactions where the purchase price exceeds £125,000:

Purchase price:

£125,001-£250,000 at 1%          of the purchase price    
£250,0001-£500,000 at 3%        of the purchase price
over £500,001 at 4 %

When purchasing a new leasehold property there can sometimes be additional stamp duty to pay if the ground rent is particularly high.

Telegraphic Transfer
Monies are transferred directly from one bank account to the other in cleared funds usually on the same day.

Tenants in Common
Each owner owns a precise and specified share of the property and is able to leave their share of the property to whoever they choose. See also Joint Tenants.

Title Deeds
Title deeds are the legal documents that confirm ownership of the property and contain details of the rights, benefits and obligations affecting the property.

Unregistered Property
Title to some properties has not yet been registered at HM Land Registry. All properties are now required to be registered at the Land Registry when the ownership is transferred and in many other circumstances. Please contact us for details. See also Voluntary Registration

Valuation Report
A valuation is a very basic report regarding just the value of the property and is usually prepared for the benefit of the mortgage lender.

Voluntary Registration
(First Registration info from newsletter)

Water and Drainage Search
Provides details from the local water company regarding the water supply and drainage for the property, together with details as to whether the property is connected to a water meter.

Zurich Insurance
Similar cover to NHBC but generally used by smaller developers and smaller developments.