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Posted on 03 May 2020

Conveyancing Jargon Explained!

Ever struggle with the language used by solicitors?

Don’t worry, us too…..

Below we have left descriptions to some of the key words/phrases which will be used during your property transaction!

Agreement – Contract

Chain – when there is another property linked to the transaction (i.e the person/persons selling is also purchasing another property at the same time)

Completion – When the money is transferred, and the property has legally changed ownership

Contract Pack – Documentation that includes the terms and conditions of the transaction that needs signing for the process to begin

Conveyancing – The legal work undertaken in order to transfer a property to the name of another person’s/organization

Deeds – Documents that confirm the registered owner/owners of the property

Deposit – The upfront payment in order to show commitment and to secure the property

Disbursements – Costs made to third party organizations who hold information needed to process your transaction

Equity – The percentage/amount of the property that you own and isn’t paid for through the mortgage

Exchange – The point where both parties are legally bound to the transaction and the money will start to be transferred

Fee – The amount charged by the solicitor for their involvement

Freehold – The property owner also owns the right the building and the land the property sits on.

Gazump – When a verbal agreement is made but the seller accepts another offer from a different party

Insurance Policy – Insurance to protect the purchaser from any defect in the legal title

Land Certificate – The documentation which proves ownership of the land being assessed

Leasehold – When the property is not owned by the occupier and is leased by the freeholder for an annual fee for the duration of years agreed.

Legal Transfer – The documentation that confirms the transfer of the property to another person’

Local Authority Search – Searches undertaken by your conveyancer regarding the land or access rights surrounding the property

Mortgage Deed – The official document which when signs confirm the amount of money borrowed

Mortgage Valuation – Your mortgage lender will send round a surveyor that will make sure the property in question is worth the money they are willing to lend.

Power of attorney – When someone acts as a legal representative and can dictate what happens to the property without being an official owner

Searches – This is where your conveyancer gathers all the property information and history.

Stamp Duty – SDLT, Stamp Duty Land Tax is a price you must pay to the government if you wish to buy a property over a certain amount in the United Kingdom

Structural Survey – a survey assessing the structural resilience of the property

Surveys – Valuations of the properties condition. (I.E structural survey, Homebuyers Survey)

Tenant – Someone who pays to occupy the property but is not the legal owner

Tenure – Whether the property is Freehold or Leasehold

Valuation – An appraisal of a properties value