Nowmove Conveyancing Glossary - Conveyancing Online Advance : The payment of Mortgage monies by the Lender. Chain: The parties involved in a transaction i.e. Mr A buying from Mr B buying from Mr C (here there are 3 in the chain). Charge : A debt secured on the property, e.g. the monies borrowed from a Lender to purchase a house. Commons Search: Enquiries to establish if anyone has any rights of grazing or fishing, etc. Completion date: The date when the transaction relating to the sale/purchase/remortgage of a house are finalised. Completion statement: A financial statement from the Solicitor, Conveyancer or Property Lawyer detailing all transactions. The statement includes all costs. Conditions of Sale: The terms by which the buyer and seller agree to buy/sell the property. The Law Society sets standard conditions. The lawyer sets special conditions. Contract: The legally binding agreement specifying all of the detail of the house sale or house purchase. The contract legally commits both the buyer and the seller to the transaction. The house seller's conveyancing Property Lawyer draws up two copies of the same contract, and each party signs their own copy. When both parties are ready to legally commit, the two contracts are exchanged. Conveyancer: The Property Lawyer who manages all of the matters arising from the sale of a house or the purchase of a house. This can be a Solicitor or a Licensed Conveyancer. Conveyance or transfer: The legally binding document that transfers the rights and burdens and the benefit of the land. Council for Licensed Conveyancers: A regulatory body for conveyancing with whom all Conveyancers should be registered. Deeds: Legal title document which provides historical information about the property. Deposit: The amount paid at exchange of contracts, which is only refundable in exceptional circumstances. Contracts provide for 10% of the purchase/sales price but can often be negotiated to a lower level. Disbursements: Out of pocket expenses paid by the Solicitor / Licensed Conveyancer on the buyers behalf such as stamp duty, land registry charges and search fees. Drainage Search : Enquiries of the Drainage Company as to mains sewers and water pipes. Easement: A right given to the house owner over an adjoining property (e.g. right of way). Environmental Search : Enquiries relating to past and current land uses of the property and its surroundings that may indicate the likelihood of contamination or pollution. Exchange of contracts: The point when both parties are committed to the transaction. This is set at a time and date. Fixtures and Fittings: A list of the items at the property, which are either included or excluded from the agreed price. Freehold: One of the two current tenures of land recognised by English law. This recognises the whole of the land not just a building. FSA: The Financial Services Authority is an independent government body concerned with consumer protection in the financial market. Gazumping: When the house seller accepts a higher price offer from another house buyer after the initial offer has been accepted. Gazundering: When the house buyer lowers his offer after the sale has been agreed. Ground Rent : Annual payment to Landlord in the case of Leasehold properties only. Homebuyers Report : An assessment of the main parts of a property, which is less detailed than a structural survey but gives general indicators as to its condition. Indemnity insurance: An insurance taken out by conveyancing firms to cover losses to clients arising from errors or fraud in dealing with their matters. Joint Tenants: On the death of one of you the property will pass to the survivor of you in exactly the same way as if that person had purchased the property on their own (see also Tenants in Common). Land registry fees: Fees paid by your conveyancing Property Lawyer on the buyer’s behalf to register the ownership of property with the Land Registry. Land Registry: The official body responsible for recording the ownership of land. Leasehold: The second current tenure of land recognised by English law. This is over a term of years and not forever. There will be a landlord who will own the freehold. This usually relates to a flat or apartment. Licensed Conveyancer: A Licensed Conveyancer is a specialist Property Lawyer, someone who is trained and qualified in all aspects of the law dealing with property. Licensed Conveyancers are sufficient to secure adequate protection for consumers and that the conveyancing services provided by such persons are provided both economically and efficiently. Local Search : Enquiries of Local Authority concerning planning and services. Mortgage Deed: The legal agreement that gives the lender a legal right to property. Mortgage Fees: Normally charged by your Financial Advisor for acting on behalf of your bank or building society. Mortgage: A loan to help you buy your house. The loan is secured on the property to prevent you selling the property without paying it off at the same time. Official Copies - these are official copies of the Land Registers sent to the Buyer's solicitors to prove the Seller's title to the property. Permitted Development : Minor alterations to a Property that do not require Planning Permission because they fall within certain criteria issued by the Local Authority Redemption Fee: A penalty which can be charged by your existing mortgage lender if you pay off your mortgage early or you move to a different mortgage. Searches: A method of checking matters that may affect the value of the property. The only obligatory one before exchange is a Local Authority Search which covers items such as road maintenance, planning applications etc. The search covers the property not the surrounding area. Stamp duty: A government tax payable by every home buyer of a property over £175k. Duty is charged at 1% for homes priced between £175k and £250k. The rate is 3% for homes over £250k but not more than £500k. For homes over £500k the rate is 4%. Structural survey: A survey giving details about the building and its integrity. Subject to contract: A provisional agreement between the house buyer and the house seller that is not legally binding. Tenants in Common : On death of one of you the share of that person will pass in accordance with any Will that has been made. Tenure : Freehold or Leasehold. Title : Documentary history of the property. Transfer document: The final document that transfers the property from the house seller to the house buyer. Valuation Survey: A survey to allow a property value to be determined for mortgage purposes. This is not to be confused with a structural survey. |