Assent
A legal document that transfers ownership from a deceased owner to the beneficiary.
Caveat Emptor
'Let the buyer beware'. The buyer is responsible for finding out the condition of a property. A surveyor is often instructed by the buyer.
Chain
A link of properties where all buyers and sellers are dependent upon one another in order for their sale and purchase to go through. This can often mean that the transaction takes longer to complete.
Charge
A debt secured against the property. In most cases, this will be a mortgage.
Completion
When payment is made by the buyer’s solicitor to the seller’s solicitor to purchase a property. This is the day you can collect the keys and move into the property.
Conveyancing
The legal process of transferring property.
Covenants
These are obligations and restrictions which are attached to the property. These may limit your use and enjoyment of the property.
Deposit
The amount paid by the buyer to the seller on Exchange of Contracts to secure the property. This is usually 10% of the purchase price. The buyer will forfeit this amount to the seller should the buyer fail to complete.
Disbursements
Third party costs incurred during the conveyancing process.
Easement
The right of way over a section of land owned by someone else.
Equity
The difference between the value of a property and the figure owed to any lenders.
Exchange of Contracts
Contracts are dated and exchanged between the seller’s solicitor and the buyer’s solicitor. At this point the process becomes legally binding and a completion date is usually set. A deposit is normally paid by the buyer’s solicitor to the seller’s solicitor. After exchange of contracts, neither party can withdraw from the transaction without possible penalties.
Freehold
Permanent and absolute tenure. You own the building and the land it stands on.
Indemnity Insurance Policy
Protects the buyer if there is a potential problem with the property that could result in local council action or legal problems in the future. It is a one-off payment for an insurance policy that runs with the property.
Leasehold
The right to occupy an area of freehold land for a specified term. After this term has expired, the property reverts back to the owner of the land.
SSTC
Sold Subject to Contract. This is a term often used by estate agents when a sale has been agreed but contracts have not yet exchanged.
Transferee
The buyer.
Transferor/Vendor
The seller.
Valuation
A procedure where the property is valued by either an estate agent, surveyor or lender.
Wayleave agreement
A formal agreement between a property owner and a service provider that permits piping or cabling through or over the property.