Common Conveyancing Jargon Explained
While this list is by no means exhaustive, it does contain many of the terms you will come across when you are moving house.
Apportionment
The amount of service charge and ground rent to be repaid to the owner, or paid to the buyer to ensure that the new owner only pays from the date of purchase.
Bankruptcy Search
This is a search taken out just prior to completion to check that there are no pending bankruptcies since you applied for your mortgage.
Building Regulation Consent
Ensures that structural works comply with the regulations in force at the time.
Caveat Emptor
Loosely translated this means 'Buyer Beware' and places the onus for any defects in the property on the buyer, if they would have been evident upon a 'reasonable inspection of the property'.
Cleared Funds
Essentially it means that it is not enough that your cheque or bankers draft is with your Conveyancer; the money must have physically been transferred by the bank and be in your Conveyancers client account and ready to use.
Completion Statement
This is the financial statement showing all of the proposed transactions and movement of your money. It is likely to be in a draft form until final redemption figures or apportionments are received.
Completion Date
This is the date that property actually changes hands and must be vacated completely by the old owner.
Contract
The formal document which sets out the exact circumstances of the sale of the property. It must include the names of all parties, a full description of the property, with a plan if necessary, and it must state exactly how much is to be paid and at what time.
Covenants
This is a legal promise to do, or not do something to the property. They may be years old but can still take effect.
Capital Gains Tax
Capital Gains Tax (CGT) is a tax levied by the Government on a proportion of the profit made from the sale of second or investment properties. It is not levied on the price you sell it for; only the profit made.
Chancel Repair
This is a relatively new phenomenon and refers to a potential right granted to the Church force homeowners to pay towards the upkeep of the Parish Church.
Coal Mining Search
This is self-explanatory; this is a search to confirm whether the property has ever been, or will be, affected by any underground mining works.
Conservation Area
This is a designation placed on a property by the local authority which restricts development or works to properties.
Contaminated Land
This refers to any land that may have a history of contaminative works or the potential for ground contamination; i.e. an old petrol station or landfill site.
Defect in Title
Any situation which calls into question the owners exclusive right to sell the property that they are purporting to sell.
Deposit
The proportion of the purchase provided by the client, rather than by the mortgage lender, on exchange of deposits.
Disbursements
Any part of the legal costs that are paid to third parties for searches, taxes or registration, for example.
Disadvantaged Area Relief
A tax allowance granted by HM Revenue & Customs to assist in the re-development of certain areas of towns.
Exchange
The point at which the contract is finalized and a binding legal agreement is made.
Equity
The portion of the property value that is over and above the amount to be repaid to the mortgage lender
Flying Freehold
A portion of a freehold property that is built above a neighbouring freehold property.
Indemnity Insurance
A legal tool whereby a title defect or adverse search entry can be neutralized. A one-off payment is made to the insurer.
Mortgage Deed
The legal document which represents the agreement between the client and the mortgage lender.
Mortgage Lender
Any financial institution authorized to make secured loans against property.
Mortgage Offer
The formal proposal from a mortgage lender stating all terms involved in a secured loan.
Occupier Consent Form
A declaration by any non-owning occupier that they will not make any claim over the property before the mortgage lender, in the event of repossession.
Office Copy
An official copy of the title to a property as held by the Land Registry.
Transfer
The formal document which transfers the title to a property between people.
