Chartered surveyor

A RICS (Royal Institute of Chartered Surveyors) surveyor is legally entitled to carry out surveys on properties.

Completion date

The date on which the ownership of the property passes from buyer to seller. Usually this happens some time after exchange, though it is possible to have simultaneous exchange and completion.

Contract

This sets out the terms of the sale between buyer and seller. It is drawn up by the seller’s solicitor and will then be negotiated.

Deposit

Not the same as the deposit you agree to put down with your lender when you take out a mortgage. In the context of conveyancing, the deposit is the amount (typically 5 - 10%) paid by the buyer upon exchange of contracts. Once exchange has taken place the contract becomes legally binding and if the buyer fails to complete they may lose their deposit (unless they signed the contract because they were misled).

Disbursements

This simply means “expenses” and is the term used by solicitors. Disbursements include things like search fees and land registry fees. Ask for disbursements to be included in your quote (most are known in advance) otherwise your bill could be a lot higher than you expect.

Environmental search

A check on records for things like flooding, landfill, waste disposal, contaminated land, etc. that might affect the property.

Exchange

The exchange of contracts between buyer and seller. Once exchange has taken place the contract is legally binding and if the buyer fails to complete then they may forfeit their deposit (unless they were misled into signing the contract).

Fixtures, fittings and contents form

This is a form prepared by the seller setting out what fixtures and fittings are included in the sale, which ones may be included at a specified price and which ones are negotiable. It may be included in the HIP, but does not have to be and can be given after an offer has been made.

Freehold

When the property comes with the land on which it is built.

HIP

Home Information Pack containing information and search results for the property. HIPs are now compulsory and you are required to have a HIP before you market your property (some documents can be added up to 28 days after marketing starts).

Indemnity contribution

Solicitors are required to take out insurance to protect their clients in the event of mistakes or fraud when dealing with their case. Usually this fee is charged to the client.

Land Registry

The Land Registry keeps records of land ownership. When a property is sold it is the buyer’s solicitor’s job to make sure that the transfer is recorded at the Land Registry.

Leasehold

A leaseholder owns the propertyonly for the term of the lease and does not own the land on which it stands, which is owned by the freeholder. Once the lease ends ownership of the property passes back to the leaseholder.

Local authority search

A search of local authority records for things that may affect the property, such as: whether the road the property stands on is maintained by the council; planning applications that may affect the property; possible planning restrictions; and rights of way.

It’s important to check what area the local authority search covers. If it only covers a limited area you may want to ask for additional enquiries.

Mortgage

The loan to the buyer for the purchase of the property. A mortgaged property cannot be sold until the mortgage is paid off (either at the end of its term or, when selling, by using proceeds from the sale to pay off the remainder).

Mortgage deed

The legal charge that gives the mortgage lender rights over the property until the mortgage has been repaid.

Mortgage fees

Fees charged by conveyancing solicitors for acting on behalf of their client’s bank or building society.

Mortgage valuation

Before your bank or building society before they will lend on a property they will have a valuation survey dont. This is to make sure that the property is worth at least the amount they are proposing to lend. It is not the same as a property survey carried out by a Chartered Surveyor - see Surveys.

Property information form

A question form to filled in by the seller covering basic information about the property. The questions must be answered honestly.

Redemption fee

Banks will often charge a redemption fee for paying off a mortgage early. Sometimes this only applies for a certain number of years after the mortgage is taken out.

Redemption payment

The repayment of the outstanding balance of a mortgage.

SDLT

Stamp Duty Land Tax - see Stamp Duty

Stamp duty

Also known as Stamp Duty Land Tax (SDLT). This is a tax on the purchase of a property and is usually paid by the buyer. The amount is based on the value of the property.

Surveys

Not to be confused with a valuation survey carried out by a lender. A property survey is carried out by a Chartered Surveyor and can look at various things such as the structure of the building and its value. There are different kinds of surveys and their costs vary significantly.

Title deeds

The documents that prove ownership of a property and which set out any rights or obligations affecting the property. If the property is mortgaged then the deeds will be held by the mortgage lender.

Transfer deed

This document (referred to as a TR1) transfers ownership of the property from the seller to the buyer. It will be prepared by the buyer’s solicitor after completion and sent to the Land Registry so the transaction can be recorded.

Water and drainage search

A search to check whether the property is connected to the water supply and sewerage system and how the property is billed for its water and sewerage services.

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