If you're thinking about buying a new home, take a look at our jargon buster below and familiarise yourself with some of the key words and phrases you may need to know.
AGREEMENT IN PRINCIPLE
An agreement from a lender stating the amount they are willing to lend subject to finding a suitable property.
A mortgage which is specifically for those who intend to purchase a property solely to rent out.
Council of Mortgage Lenders, a body which oversees the Mortgage lending process.
Where purchasers are dependant on the sale of their existing property to complete on their new one, these interconnecting sales are called 'the chain'.
The legal transfer of ownership passes to the buyer.
CONDITIONS OF SALE
The terms under which the sale or purchase of the property should proceed
The legal documentation which details the agreement of purchaser between the buyer and the seller.
A qualified person, usually a solicitor, who will deal with the legal aspects of your purchase or sale.
The term indicating the legal work to be carried out relating to your purchase or sale.
Regulations or restrictions relating to a property, these are detailed in the titled deeds.
Title Deeds are legal documents which prove ownership, they are generally held by the mortgage provider.
The monies paid at exchange of contracts by purchaser, generally this is 10%, but it does vary.
EXCHANGE OF CONTRACTS
Where both parties exchange signed contracts which will legally bind both to the sale and purchase of the property at an agreed price.
Indicates complete ownership of the property for an unlimited period of time.
An annual charge payable on a leasehold property to the freeholder (landlord).
This is a survey carried out by a qualified Chartered Surveyor to access the condition and market value of a property.
LAND REGISTRY FEE
Fee paid to the Land Registry to register ownership of a property.
Indicates ownership of a property by way of a lease for a fixed period of time.
LOCAL AUTHORITY SEARCH
Enquiries made by the purchaser’s solicitor regarding any current or future developments or changes to an area which may affect the property being purchased.
Also know as a Service Charge, is a fee payable by a leaseholder for the upkeep and maintenance for communal areas within a building.
A guarantee provided by the National House Building Council (NHBC) for new homes. This covers structural defects within a set timeframe.
The amount of money a buyer offers to purchase a property.
OPEN MARKET VALUE
The price at which a property would sell assuming there is a willing buyer and a willing seller.
A person wishing to buy a property.
A sum of money payable to a developer once an offer has been accepted, this fee will result in the property being removed from the market and will be deducted from the completion payment.
An enquiry made for information regarding the property held by the local authority or land registry.
A qualified legal expert who deals with all documentation relating to the sale/purchase.
A tax paid by the purchaser of a property, the amount payable will relate to the cost of the property.
Sold Subject to Contract, a property is under offer and both parties intend to complete the sale, however nothing is legally binding at this point.
A qualified professional who carries out survey’s on properties.
The legal terms under which a person’s ownership is defined, i.e. freehold or leasehold.
The documents detailing the legal ownership of a property.
The documentation from the land registry showing the transfer of ownership from seller to buyer.
The status of a property once a seller has accepted an offer but has yet to exchange contracts on the sale.
A compulsory valuation for mortgage purposes to assess the value of a property.
The person selling a property.