Property jargon explained

Agency Fees

This is the percentage or fixed fee paid to the estate agent if they sell your home for you. Fees vary between different estate agents and different purchases.

Appointing or Instructing a solicitor

Organised a solicitor to deal with you proceedings (purchase, sale or other arrangement)

Appointing or Instructing an estate agent

Organised an estate agent to deal with you proceedings (purchase, sale or other arrangement)

APR

Annual percentage rates of loans - including mortgages. Used to compare rates and charges.

Banker's Draft

This is a guaranteed payment of funds

Boundaries

These are the areas around a property that identify the start / end of the land ownership. Responsibility for a particular boundary or boundaries will define which fence or hedge etc. is your responsibility to maintain.

Bridging loan

Short term loan arranged to fill a gap in finance, can be almost anything but a good example is covering costs of one home whilst waiting for that home to sell.

Building Insurance

Usually arranged in advanced of moving in - ie exchange of contracts. Covers the cost of rebuilding your property in case of fire or other incident (exact details of cover are provide in the insurance broker / operator)

Building survey

This is a survey on a properties condition. Survey types and names vary so look for the depth of detail covered don't just rely on the name of the survey.

Cash buyer

Often refers to a buyer that does not need a mortgage or has no home to sell. Sometimes buyers with mortgages already arranged are referred to as cash buyers so it's worth checking the exact circumstances.

Chain

There is often a chain involved in buying and selling houses. Simply you are buying a house and the person you are buying from is buying a house from someone else (and so on, and so on). The larger the chain the more complicated buying (and selling) can be. First time buyers and those moving out to rented or other accommodation are often looked upon favourably due to a short chain.

Commission

This is usually a percentage. Estate agent's charge a commission on sales and purchases of property. Percentage rates vary between estate agents.

Completion

The agreed time for all parties to sign the legal documents for the purchase / sale of the property. Once contracts are completed then monies are transferred between the parties involved. Once this is done you can then move in to your new property.

Contents Insurance

Insurance to provide property contents cover against fire or break in (or other event). Contents insurance is not necessarily limited to the internals of the property and arrangements and values vary by policy, so read carefully.

Conveyancing

This is the legal work involved in buying and selling a property. Solicitor's often work as conveyancers but there are also specialists that deal only in conveyancing.

Covenants

Rules and conditions affecting the property (and or usage of certain areas) contained within the Title Deeds or Lease.

Deeds

Legal documents outlining ownership and specifying anything effecting the property e.g. rights of way.

Deposit

Normally paid at exchange of contracts, often 10% of the purchase price of the property but the percentage can be anything, usually arranged along with your mortgage. It may also be a down payment to reserve the property.

Disbursements

The term used by solicitors for their charges in carrying out legal work.

Eaa79

Estate agents do not require any qualifications to set up in business. The Eaa79 act ensures that estate agents can be prosecuted, for example if they do not tell you their terms and conditions for selling a property.

Early repayment charges (Early payment, Early redemption)

Usually associated with re-mortgaging, but simply, if you repay a mortgage you may be charged an early repayment charge. The amount (if any) depends on your arrangements with your mortgage supplier.

Easement

Or 'right of way' giving you the right over someone else's (or shared) land e.g. shared path or driveway

Exchange (Exchange of Contracts)

Contracts are passed between buyers and seller's solicitors to look over and confirm that the legal agreements for making the sale, purchase are in order. Once contracts are exchanged the agreements to buy and sell are legally binding. Until exchange either part can walk away without penalty. Following exchange comes completion and signing of the exchanged contracts and transferring of final monies.

Final Searches

Carried out before completion, land charges, land registry searches, bankruptcy searches and others depending upon circumstance.

Fixtures & fittings (content form)

A list of items within the property. The list specified what is in the house, sold with the house and possibly inviting offers on items. The list varies between properties but lists central heating, radiators, cookers, cupboards, flooring, furniture, curtains, light fittings and many other items.

Freehold (property)

The property is owned outright. See Leasehold

Gazumping

This term describes a buyer who has accepted an offer but then accepts a higher or preferred offer. Remember until contracts are exchanged either party can change their minds.

HM Land Registry

Government department which registers all details of land transactions. (sale, purchase, change of use etc.)

Independent Financial Adviser

A financial adviser that is not tied to a particular product or company.

Indemnity Insurance

Insurance policy designed to protect the lender against loss in the event of you defaulting and ceasing to repay your mortgage.

Basically,

Mortgage indemnity may be taken out by your lender as additional security for itself.

Mortgage indemnity does not cover you.
You must repay all money owed under your mortgage whether your lender makes a mortgage indemnity claim or not.
Your mortgage lender may require you to pay the premium as part of the mortgage arrangement.

Joint agency

This is the appointment of more than one estate agent in selling the property.

Leasehold

Temporary ownership of the property but not the land on which it stands. When the lease expires the property ownership reverts back to the freeholder.

Lenders fees

This is a payment by you to your lender, this may be to cover their administration or other costs.

Lenders evaluation

Your mortgage lender will evaluate the property and establish whether the property is worth the requested loan amount.

Local searches

A local search investigates the records held by the Local Authority (usually a council) to find out any important information which may effect the property. Your solicitor or conveyancer will conduct local searches as part of their conveyancing work.

Occupiers waiver

All occupies of the property aged over 17 must sign the waiver to prevent any cliam on the property.

Retention (Mortgage)

Mortgage lenders may place a retention on the mortgage loan and hold back a retention amount of the total mortgage loan. This may happen if work is needed on the property e.g. damp treatment. The mortgage lender will retain an amount from you until the requested work is completed (usually within a set time period).

Stamp duty

A payment made to the government for purchase of your property. Charges vary in price bands.

Subject to contract

An agreement has been made, but that the contracts have not exchanged yet.

Subject to survey

This means that an agreement has been made subject to a survey being carried out.

Title Deeds

Legal documents which prove the ownership of the property.

Utilities

Companies such as gas, electricity, telephone.

Vendor

The seller of the property