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Glossary

This page is designed to explain some of the terms used on this site.

Agreement/Contract

This is the document which sets out the terms of what has been agreed between the Seller and the Buyer in respect of the Property. It includes the description of the Property, its Title Number, the full names and addresses of the parties, the Purchase Price, the deposit payable on exchange and whether any monies are being paid in respect of additional items which the Seller is selling to the Buyer. It is prepared by the Seller's Solicitors and sent to the Buyer's Solicitors for approval. Once the Agreement has been approved each solicitor arranges for his/her client to sign their own copy. Once all the enquiries have been dealt with and all Searches and Mortgage Offer (if applicable) and satisfactory replies to enquiries have been received then Contracts are exchanged.

Bankruptcy Search

A Search we have to make when you are taking out a Mortgage to check that you are not Bankrupt and have no Bankruptcy Petitions pending against you.

Completion Date

The Completion Date is the date when the Property becomes the Buyer's and the Buyer can move into the property. This date is agreed between both Seller and Buyer on or before exchange of Contracts. It is only when Contracts are exchanged that a Completion Date is fixed.

If a Buyer is buying a Property in the course of construction by a developer the Seller will usually require that legal completion is “On Notice” which means that once the Developer's Solicitors have received notice that the Property has been or will shortly be completed, they will issue a “Completion Notice” to the Buyer's solicitors stating that they have a certain number of days in which to arrange for completion to take place – usually in 7/14 working days of such Notice being served.

Deposit

It is normal when exchanging Contracts for a deposit of 10% of the Purchase Price to be paid. Sometimes a reduced deposit is agreed by a Seller but if so the Contract will usually specify that the Buyer is liable to pay the remainder of the 10% deposit if the transaction does not complete as it should.

Early Redemption Fee

Many Lenders charge their Borrowers for paying off their Mortgage early. If you are selling/re-mortgaging a property you may need to check with your current Lender as to whether they will be charging you any additional fees in respect of this.

Exchange of Contracts

Once Contracts are exchanged the transaction becomes legally binding. Each solicitor uses his/her client’s signed Contracts and exchange is agreed by telephone. Any Deposit will usually be paid at this stage.

Fixtures Fittings and Contents Form

This form which is completed by the Seller lists the items which are included, or excluded from the Purchase Price (or are not at the Property). It is part of the Contract documentation provided to the Buyer's Solicitors and is attached to or referred to in the Contract.

Home Information Pack [HIP]

An information pack provided by a Seller of a property containing compulsory documents as required by the HIP legislation.

Environmental Search

A site specific environmental report containing information as to past and current land-use and risk of environmental contamination.

Know Your Neighbour Planning Report

A report showing Planning applications submitted to the Local Authority relating to properties and land neighbouring the subject property (which would not be revealed by a Local Search) and so enabling a potentially better view as to future local development.

It also shows local data including Council Tax Bands, certain local crime information, details of local state schools and of certain results obtained there and details of certain other local facilities and an aerial photograph of the subject property taken from the Millenium Map.

Land Registry

H M Land Registry is the Government Agency which retains the records of ownership of registered land, for example what the land is, who owns it, when the land was purchased, the price paid and matters that affect or are registered against the Title. Not all land is registered however.

Land Registry Registration Fee

The Land Registry Fee that has to be paid to register a transfer or mortgage of a Property.

Leasehold Property

An owner of a Leasehold property owns the property for a limited period of time only; common lengths are terms of years of 99 or 999 years but they can be for any length. When the lease term expires then the Property has to be handed back to the freehold owner

A Buyer's solicitors will make an application for a Local Authority Search either to the local authority direct or through a personal search agency for information regarding the property that is being purchased. The result gives answers to a list of standard Questions about the Property including information regarding whether the roads by the Property are maintained by the Council, Planning Applications in respect of the Property, whether the Property is in a Conservation Area, information regarding Radon and other matters.

Management Company

An independent Management Company is often appointed by a Landlord or deals with rent and Service Charge collection in respect of Leasehold properties/block of flats.

Mortgage

A Mortgage is a loan the repayment of which is secured by or upon land. Most people purchase properties with the aid of a Mortgage.

Mortgage Deed

This is the document by which a Borrower charges his/her Property with the payment of the sums borrowed from his/her Lender; after completion the Mortgage is registered at the Land Registry.

Notice of Mortgage/Notice of Transfer

On completion of a leasehold purchase a Notice is served on any Management Company/Landlord to let them know the details of the new owner of and lender on the Property in order that they may arrange for collection of any Rent and Service Charges that are due and know upon whom service of any future demands or notices should be effected.

OS1 Search

A Land Registry Search that has to be taken out when a Property is being bought or mortgaged.

Pre-Contract /Additional Enquiries

These are Enquiries made of a Seller/Seller's solicitors by a Buyer’s solicitor after receipt of the Contract documentation. We normally recommend that our own Buyers themselves prepare and provide to us a list of any Questions that they have regarding the Property in order that we may raise those at the same time as our own Additional Enquiries.

Redemption of Mortgage

This is the legal term meaning repayment of your Mortgage.

Search Package

This comprises a Personal Local Search, Groundsure Environmental Search and Private Water and Drainage Search [£140] plus 1 Bankruptcy Search [£2] and Land Registry OS1 Search [£6] and a Plans fee of £5.29.

Seller's Property Information Form

This is a list of Questions to which a Seller provides answers and which forms part of the Contract papers which are sent to the Buyer's solicitors. The answers include information as to who is responsible for the boundaries, whether there have been any alterations to the Property, whether there are any Guarantees, whether there have been any neighbour disputes and such.

Stamp Duty

This tax is payable on purchases over £125,000 at the following rates:

£0.00 - £125,000 0% of the Purchase Price

£125,000.01 - £250,000 1% of the Purchase Price

£250,000.01 - £500,000 3% of the Purchase Price

£500,000.01 and over 4% of the Purchase Price

In certain areas properties up to a Purchase Price of £150,000 are exempt.

Survey Report

A Survey is a report on the physical state and value of a Property prepared by a surveyor usually following an inspection of the subject property. It is for the surveyor and the Buyer to ascertain any physical defects at the property by inspections and surveys and enquiries.

Telegraphic Transfer Fee

The Telegraphic Transfer Fee covers the costs of the firm and any bank charges incurred by the firm in relation to the sending of 1 [one] (only) sum of money by Bank Telegraphic Transfer. On a Purchase this will be to the Sellers solicitors and on a sale to your Lender. Second and subsequent sums sent by Bank Telegraphic Transfer are charged at £45 plus VAT [£52.88] each.

Title Deeds/Official Copy Entries

These documents detail the ownership of the Property and the legal matters to which it is subject. On a sale we will have to obtain up to date Official Copy Entries and obtain the Deeds from you/your Lender.

Transfer Deed

This is the document by which the Property is transferred by the Seller to the Buyer. It is handed over on actual completion and the Buyer's solicitors will register the Property into the Buyers name at the Land Registry.

Valuation Report

This is a basic report prepared by a Lenders surveyor for the Lenders benefit only. Such a report should not be relied upon by a Buyer who should always consider obtaining his/her own substantially more detailed survey before proceeding further.

A Search to check the arrangements as to water supply and drainage to and from a Property and as to the course of pipes.