Bankruptcy search

This search is to check whether a buyer has been registered bankrupt or is on the verge of bankruptcy.  It’s carried out by the buyer’s solicitor for the benefit of a mortgage lender.

Boundaries

The title deed or plan should show how far the boundaries of a property extends. The boundaries may be shown in relation to physical features on the ground, such as a wall or hedge but aren’t always detailed.

Building regulations

Minimum standards for design, construction and alterations to buildings that are approved by the UK government. Solicitors will ask for completion certificates to show work, such as a loft conversion, meets the relevant building regulations when a property is sold.    

Buy to let

This is when a buyer purchases a property to let on a commercial basis.  

Caveat Emptor

A Latin term meaning ‘let the buyer beware.’ It’s a legal principle dating back centuries and is still used today in conveyancing. It puts the onus on the buyer to find out if there are any physical defects in the property or legal issues before they buy.  This means instructing a conveyancing solicitor to check the legal documents and surveyor to inspect the property for any structural issues before buying.

Chain

A property chain is when buyers and sellers are linked together because each purchase or sale is dependent on other transactions further down the line.

Chancel repair liability

An ancient law requiring homeowners to fund repairs to the chancel (the part of the church containing the altar and choir) of an Anglican parish church. It can leave homeowners facing hefty bills. A conveyancing solicitor will check if the property you want to buy has any chancel repair liability. There is insurance available.

Client care letter/pack

This is an agreement with your conveyancing solicitor, detailing how you can expect to be treated, the amount to pay and what you can do if you have any complaints or problems.

Coal mining search

Your conveyancing solicitor may say a coal mining search is necessary. This is to establish if a property is over or close to a disused mining shaft or in an area of historic mining activity which might cause major problems, such as subsidence.

Completion

This is the exciting day the sale is finalised and the buyer gets the keys to their new home. The legal formality involves paying the balance of the agreed purchase price in return for a signed Transfer Deed (which states ownership transfers from buyer to seller).

Contract for sale

A legal document which sets out the terms of the sale and purchase of the property

Conveyancing

The legal term for all the work involved in transferring ownership of a property from seller to buyer.

Deposit

This is a sum of money to be paid on exchange of contracts, usually 10 per cent of the purchase price. It’s non-refundable if the buyer pulls out at the last minute. Not to be confused with a deposit for a mortgage loan.

Disbursement

Fees and taxes that a conveyancing solicitor must pay to third parties as part of the house-buying process. Examples include local authority searches, Land Registry office copies, environmental searches, drainage search and Stamp Duty.  

Drainage/water search

This investigates if the property is connected to mains water and foul water sewers and whether there are any other issues relating to drainage affecting the property. 

Easement

A right benefitting one property over another

Environmental search

This search investigates whether there are any specific environmental issues affecting the property, such as flooding or industrial contamination.

Exchange of contracts

Both buyer and seller sign identical contracts but it’s only when they are formally exchanged by their respective solicitors it becomes a legally-binding deal. Up to the exchange of contracts either party can pull out without incurring serious costs.

Fixtures, fittings and contents form

This lists items which the seller intends to leave or remove from the property on completion, for example fitted wardrobes and light fixtures. The seller may charge an additional sum for certain contents which will need to be agreed with the buyer.  The fixtures and fittings form once agreed by both parties, is attached to the contract and is part of it.

Freehold

Freehold is absolute ownership of a property and the land on which it stands in perpetuity as opposed to leasehold which is time limited. It’s essential to know if a property is sold as freehold or leasehold. Standalone houses are usually sold freehold but there is an increasing trend for new-build leasehold houses.

Ground rent

If you own a long lease on a property there is usually an annual ground rent to be paid to the freeholder. It can just be a few pounds or thousands of pounds per year, depending on the terms of the contract.

Land Registry

This is the Government department which keeps a central record of properties in England and Wales. The register holds information such as title deeds, boundaries and when a property was last sold and for how much.

Leasehold

Flats and some houses can be sold as leasehold. Put simply, leasehold is the right to own the property for a fixed number of years. When the lease ends, ownership reverts to the freeholder. You are likely to have to pay annual ground rent and possibly service charges if you purchase a leasehold property.

Legal fees

Most people need a solicitor or licensed conveyor to carry out all the legal work involved in buying or selling a house.  

Local Search: See Searches

Mortgage offer

The formal document making an offer of a mortgage stating how much the loan is for, the period and the amount of repayment and all the terms and conditions attached to the land.

Mortgage valuation

If a buyer takes out a mortgage, the lender will carry out a valuation to determine its economic value. A mortgage valuation is for the benefit of the building society or lender. It is concerned with problems that may affect the security of the loan only and doesn’t necessarily report any issues to the buyer. It determines fair market value – and is not a survey.

Property Information Form (TA6)

This is a Law Society form filled out by the seller to provide information about the property. It includes a series of questions ranging from disputes with neighbours to alterations, planning and building control. It’s very important the answers are accurate. If the seller provides misleading information or covers up important details, the buyer may be able to claim compensation or refuse to complete the purchase.

Property search: See Searches

Property Survey: See Surveys

Register of title and official copies

These are official copies of registered title to a property from the Land Registry. Typically, they are given to the buyer’s solicitor in the early stages of the conveyancing process.

Registered Land

Some 88 per cent of land in England and Wales is now registered. In 1980, it became compulsory to register land at HM Land Registry on completion of a property purchase. The official register keeps a central record of legal title to a property, boundaries, any rights of way, who is the owner, any charges, such as a mortgage, and third party rights. For a small fee, The Land Registry will supply an official copy of the register for individual properties.

Restrictive covenants

These are restrictions or legally binding conditions attached to the use of property. They apply to all purchasers of the property and not just the original owner. A buyer’s conveyancing solicitor will examine the property deeds and flag up the existence of any covenants. Restrictive covenants can be anything from banning beer-marking in a former brewery cottage to prohibiting the keeping of livestock in the garden.

Searches

The buyer’s solicitor will carry out searches as part of the conveyancing process. Basically, they are to check there aren’t any problems with the property.  General searches include: local authority search, for example major new roads or housing developments planned;  drainage and water and environmental. In addition, the mortgage company may also request more specific ones depending on the location. For example, potentially lethal radon gas in granite-rich areas such as Cornwall.

Seller

This is the person selling the property. Also known as the vendor.

Stamp Duty

This is a land tax paid by the buyer to the Government on completion of the purchase of a property. The amount paid is based on the purchase price. First-time buyers are mostly exempt.

Survey

 An independent report on the structural condition of the building carried out on behalf of the buyer. The Royal Chartered Institution of Surveyors (RICS) offers three levels of survey, starting with the basic Home Condition Report. The HomeBuyer Report details any significant problems that could affect the value of the property while the Building Survey provides most detail on a property’s construction and condition.

Title deeds

Paper documents showing the ownership of land and property. They can include contracts for sale, wills, mortgages and leases. HM Land Registry generally only has the original paper title deeds when land or property is registered for the first time. It takes scanned copies for the register and returns the originals to the property owners.  Homeowners are advised to keep the original deeds in a safe place.

Transfer Deed

This is a formal Land Registry document in England and Wales prepared by conveyancers to transfer legal ownership of a property from seller to buyer. It needs to be signed by both parties and will be sent to the Land Registry so the property’s title can be transferred to the new owner.

Unregistered land

If land is unregistered it’s not on the HM Land Registry of land and property ownership in England and Wales. There are still homes purchased before 1980 that haven’t been registered. If land is unregistered, owners need to apply for registration by submitting paper deeds to HM Land Registry. If deeds have been lost or destroyed, it can make things complicated to prove ownership.  

Vacant possession

The right of a buyer to have exclusive use of a property on completion of the purchase, any previous occupants having moved out.

Valuation: See mortgage valuation

Vendor and purchaser

Fancy terms for seller and buyer.

Wayleave

A right of way through or over a piece of land granted by a landowner, generally in exchange for payment. For example, with a water company for the laying of pipes.