Buying or selling can be confusing. This guide explains some commonly used conveyancing terms. If you encounter these words during the course of your transaction and are not wholly certain of their meaning or effect, please do not hesitate to ask for clarification.
A road maintained by the local authority at public expense
The document used to transfer the property from the deceased to the persons entitled
A person appointed to act on behalf of another person and sign documents on their behalf
Approval by the local authority to the construction and materials used in building work
Where the success of one purchase depends on the sale and purchase of another e.g. where seller 1 sells to buyer 1 and buyer 1 sells to buyer 2 to create a chain of connected transactions
The legal document that sets out the details regarding the property purchase including the buyer, seller, price and property details
The date that the transaction of buying/selling is legally completed and the property passes to the buyer. This is the moving date
These are the rules which must be complied with during ownership of the property. These can be positive in nature, ensuring that you will do something (i.e. maintain a fence), or negative, ensuring that you do not do something (i.e. use the property for business purposes)
A document or deed containing an agreement to pay or do something
A deposit (usually 10% of the price) is paid by the buyer on exchange of Contracts
Payments to third parties during your transaction e.g. to the Land Registry
On exchange, the contract terms becomes binding and a completion date is set
A summary or list of relevant title deeds proving the history of ownership of a property
The difference between the value of the property and the amount owed on the mortgage
This is when part of a property is built above part of another property, and the upper property owner does not own the whole building
Every piece of land has someone that owns the freehold. For most purposes, the freeholder is the ultimate owner of the property and generally has complete control over their property (subject to laws and planning restrictions). A simple example of freehold ownership is that most people who own and occupy their own house own the freehold title to that house. This means that they have control over the property and responsibility for repairing, maintaining and insuring it. Their only regular outgoings are likely to be council tax, utility charges and any mortgage payments
This is the rent paid by a lessee to a lessor where a property is leasehold. It is often paid yearly
A government organisation which maintains a register of properties and their ownership in England and Wales
A freeholder (Landlord) can grant a lease to another person (leaseholder/tenant), allowing them to use and possess their property, or part of it, for an agreed period of time.
A document setting out the rights and obligations of the Landlord and Tenant (Lessor and Lessee)
A wall owned jointly with a neighbour and repairable at joint and equal expense
Approval by the planning authority to the construction, extension, alteration or change of use of a property
An unadopted road which is not maintained at public expense. Property owners need to have particular (and preferably documented) rights over it as it is not necessarily a road which offers public access
The repayment of an existing mortgage or loan
Property which has been registered at Land Registry
A rent payable on freehold properties to ensure estate covenants are enforceable
An initial payment to a Builder / Developer to reserve a new property
Searches are carried out against the property to reveal any matters which may affect the title, use or value of the property. As standard this usually includes a Local Search, Water Search, Environmental Search and Planning Search.
A charge paid to the landlord to cover repairs, maintenance and improvements to a property
A government tax payable on completion of the purchase of a property over a certain value
The document that legally transfers the property into the name of the buyer
An order specifying a tree as protected. Planning Permission is required to cut the same.
A title to a property which has not been registered at the Land Registry
A Seller required to give vacant possession must (on completion) leave the property (including the garden and outhouses) empty of people, possessions and rubbish
A written agreement entered into with an owner to give a service provider (e.g. Electricity or Telephone company) a right for their cables to pass under or over their property
