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This glossary page only offers outline
information on the UK property market. If you are buying or selling property
you must employ the services of a solicitor and seek professional advice
at all stages.
Auction
A property or House Auction is the sale of a property to the highest bidder.
This can take the form of a normal auction where you gather to compete or
a closed / sealed bid house auction, where the bids are made and then opened.
Building survey or structural survey
An inspection of the property by a chartered surveyor. His observations are
then presented in a report about the property from a structural perspective.
Older properties will often need a survey for loan purposes. If you wish
to alter or extend the house, an initial survey may be sensible before you
commit to buying the property. A Building survey or structural survey can
be done along with a house valuation. The report can be done to variable
degrees of detail, which you should specify.
Chain
Delays may occur in buying a house if a buyer is dependant upon completion
of the sale of his house before he can purchase his new property. This could
result in a chain of buyers and sellers awaiting one member to sell his house.
Completion
Once all transactions relating to the property sale are concluded and all
the legal transfer of ownership passes to the buyer of the house/property.
Conditions of sale
The rights and duties of the buyer and seller.
Contract
A legal document for the agreement of terms between the seller and buyer
which binds both parties to complete the transaction of the sale/purchase.
Contract race
The seller will sell to whoever exchanges contracts first on the property.
Conveyancer
A qualified person such as a solicitor or licensed conveyancer who deals
with the legal aspects of buying or selling a house.
Conveyancing
Legal work involved in the purchase and sale of a property, commonly used
to refer to the whole legal process.
Covenants
Rules and regulations governing the property in its title deeds or
lease/leasehold agreement.
Deeds
Legal title documents demonstrating ownership of the property.
Deposit
Money paid by the buyer on exchange of contracts during the conveyancing.
Detached
A property that stands alone and is separated from all other buildings.
Development
A recently built residence or a property which has been refurbished and
modernised.
Dilapidations
Disrepair or damage usually to a rented property.
Disbursements
House purchase fees paid by the buyer's solicitor for items like stamp duty,
land registry and/or search fees.
Draft contract
The first version of the contract which is then edited accordingly if required.
Exchange of contracts
Signed contracts between the parties involved are physically exchanged which
legally commits the buyer and seller to the transaction of a property at
an agreed price and terms.
Fixtures & fittings
All non-structural items included in the purchase of a property. These should
be listed, although an argument can be made that if an item is 'fixed' then
it is deemed part of the sale. Legal advice should be sort for specific issues.
Gazumping
A new term meaning that a seller accepts a higher offer from someone on a
property that they have already agreed in principle (but not contractually
as yet) to sell to someone else.
Gazundering
When a buyer reduces his offer just before contracts are exchanged.
Ground rent
The annual charge levied by the freeholder to the leaseholder of a property.
Homebuyer's survey and valuation
Chartered surveyor's report to assess the state of a property and its value
but not a detailed structual survey.
Inventory
A list of furnishings and contents of a leased property to determine any
dilapidation during the tenancy.
Land registry fee
Land Registry payment to register ownership of a property.
Lease
A legal document outlining details for how the freehold or leasehold owner
of a property lets the premises for a specific length of time, after which
the ownership may revert to the freeholder or the superior leaseholder.
Leasehold
Denotes that ownership of a property and/or buildings is by way of a lease
agreement.
Listed building
Buildings of special architectural or historic interest are usually 'listed',
which prevents them from being demolished or altered without local government
permission.
Local authority search
The buyer's solicitor makes an enquiry to the local council for future
development issues or outstanding enforcement's which might affect a property
or immediate surrounding area.
Maintenance charge (service charge)
Cost of repairing and maintaining external or internal communal parts of
a building which is charged to the tenant or leaseholder.
Maisonette
A property arranged over more than one floor (ie: a portion of the house),
with its own private entrance.
Negative equity
If the value of a property is less than the outstanding mortgage then there
is 'negative equity'.
NHBC (National House Building Council) scheme
A building guarantee available on some new homes. Any defects occurring within
a specified time cab be remedied.
Offer
A sum of money that a potential buyer offers for a property.
Open market value
The realistic value of a property if it was available for sale.
Peppercorn ground rent
A nominal rent usually paid annually and of low value.
Pied-a-terre
A property for occasional occupation.
Preliminary enquiries
The initial questions about a property which the seller must answer prior
to the exchange of any contract.
Purchaser
The person who is buying a property is known as the purchaser.
Repossession
A mortgage lender can take possession of a property if the mortgage payments
have not been met according to the mortgage agreement.
Search
The local authority or the land registry hold information about property
and location which can be sort via a 'search'.
Semi-detached
A property which is joined to one other dwelling.
Sole agent
Exclusively one estate agent instructed for securing a sale or let.
Solicitor
A professionally qualified legal expert.
Stamp duty
The tax paid to the government by the buyer of a property. The amount depends
on the price of the property.
Studio flat
Open-plan living area in a flat including cooking and sleeping in one room
and a separate bathroom/shower.
Subject to contract
An agreement which is not yet legally binding to either party.
Surveyor
A qualified expert who carries out the survey of a house or property.
Tenancy
Possession of a property by a tenant on a predetermined time scale and
conditions.
Tenancy agreement
A legal agreement to protect the rights of a tenant and landlord.
Tenant
The person who has temporary possession of a property as per an agreement.
Tenure
The conditions on which a property is held for instance, it's length of lease.
Terraced house
A property which forms part of a connected row of houses, usually all in
the same style.
Title deeds
Documents demonstrating and outlining the legal ownership of a property.
Transfer deeds
The land registry document that transfers legal ownership of a property from
the seller to the purchaser.
Under offer
The status of a property after a seller has accepted an offer. Usually refers
to the period before the contracts have been signed.
Valuation
A survey of a property to establish its value usually for mortgage purposes.
Other info pages:-
Aberdeen,
Birmingham,
Brighton, Bristol,
Cambridge,
Cardiff, Dorset,
Edinburgh, Glasgow,
Leeds, London,
Manchester,
Newcastle, Norfolk,
Oxford & York
plus Jargon Buster &
Buying in Scotland
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liability for the accuracy of the information contained herein and will not
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indirectly by any person, individual, company or organisation as a result
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