Jargon Buster

We've put together a 'jargon buster' as a guide to some of the key specialist terminology associated with rural land and businesses.

AGRICULTURAL OCCUPANCY CONDITION (AOC)
Residential planning permission is granted for a house to be built to strictly accommodate agricultural or forestry workers on a site, which would not normally be permitted to be developed. Prospective purchasers are advised to consult with the Local Planning Authority to assess whether or not they meet the criteria to reside in such a property and for the official AOC definition for the specific property.

AUCTION
The public bid for land which may or may not have a reserve price. Exchange of contracts takes place at the fall of the hammer.

EASEMENTS
The right to do something or the right to prevent something over the property of another.

FORMAL TENDER
Prospective buyers are provided with a firm closing date, comprehensive legal pack and a specified exchange date. Offers should be submitted, (along with the specified deposit) in a sealed envelope stating the property to which it relates but unmarked as to its sender. All offers received are then opened and recorded on the publicised date/time. Once the successful bid has been selected, the bankers draft is accepted and contracts are automatically exchanged. The successful bidder is then bound into the sales contract with completion to be made on the appointed date.

FREEHOLD
Property owned in absolute ownership.

HOLDOVER
When the vendor reserves either a right of occupation of part of the property or a right to re enter the holding to (e.g. to either store or harvest crops) post completion for a pre agreed timescale.

INFORMAL TENDER
Land is advertised stating a closing date by which potential purchasers must have submitted their bid. Bidders will be contacted in due course regarding their offer and whether or not it had been successful or if they would like to increase it, after being informed that a higher bid had been received.

LEASEHOLD
A form of property tenure where one party buys the right to occupy land or a building for a given length of time.

OVERAGE
An amount of money which the vendor may be entitled to receive from a purchaser of the property, if a specified condition is satisfied by that purchaser which is stated in the conveyance i.e. the granting of planning permission.

PRIVATE TREATY
The property is marketed on the open market whereby written ‘Expressions of Interest’ may be requested or received from prospective buyers. A ‘Best and Final’ offers price may be requested from the prospective purchasers’ by way of drawing the sale to a close. 

RESTRICTIVE COVENANT
A private agreement in a contract requiring one party to the transaction to do, or refrain from doing certain things. These often apply to successive title holders.

SINGLE FARM PAYMENT
The principle agricultural subsidy scheme in the European Union. Subsidies are no longer linked to production but require environmentally friendly farming practices in the form of Cross Compliance.

SPORTING RIGHTS
Title to grant the right over land for the purposes of hunting and killing game.

STAMP DUTY LAND TAX (SDLT)
SDLT applies to transactions when you purchase property or land, or may become payable on some leases. The rate of SDLT payable to H M Revenue and Customs ranges from zero to 4% depending on both the nature and the purchase price paid for the property. From 3 September 2008 to 3 September 2009 there is a temporary exemption from SDLT for the acquisition of residential property only worth not more than £175,000.