Glossary of Conveyancing Terms

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z

C is for

Caveat Emptor
This means "Let the Buyer Beware". Basically the property is sold to you in its current state and condition and the seller gives no warranty that it is free from defects. This includes the structure of the building and services such as central heating systems and all other consumer services. The onus is on you to have the same fully checked prior to exchange of Contracts. See definition of Survey below.

Chain
When you move from one house to another you may be one link in a chain of people all waiting to move. Each person in the chain has to sell his own house, obtain a mortgage (if required) and buy their new house. Only when everybody in the chain has sorted out their particular circumstances can everybody move (usually on the same day). Sometimes there can be a delay when one person in the chain holds up the whole process (e.g when a person has difficulty obtaining a mortgage).

Chaps Transfer
This is the system by which monies are transferred electronically from one bank account to another. On completion day, monies are transferred between solicitors by this system, and it will also often be used to account to clients for balances of sale proceeds and for the redemption of any mortgage on a property.

Completion
This is the "moving in" and/or "moving out" date. It is the day when you will take up occupation of your new property and/or vacate your existing property. The solicitors in the transaction will pay over, or receive, the balance of the price of the property; you become liable for your new mortgage and/or we repay your existing mortgage (if any).

Contract
The legal and binding agreement committing the buyer and seller to the sale or purchase. It sets out the terms and conditions of your sale and/or purchase.

Contract Rate
If you are late in completing a transaction, or the transaction does not take place within the time limits specified in the contract, interest is chargeable (usually at the rate of 4% above base rate) on the outstanding balance due to the Seller on a daily basis.

Conveyancing
Conveyancing is the legal process by which your solicitor transfers ownership of land

D is for

Deposit
A deposit is required as a down payment on exchange of Contracts. Normally such deposit equates to 10% of the purchase price and is payable on exchange of contracts to the Seller's solicitors. If for any reason the buyer in unable to proceed with the purchase following exchange of contracts, in addition to any compensation that the Seller may be able to claim, provided the correct procedure has been followed, the Seller may forfeit the deposit.

Disbursements
Payments that we make on your behalf to third parties, including search fees, stamp duty land tax and land registry fees.

E is for

EPC
Energy Performance Certificates (EPCs) are reports prepared to show how energy efficient a home is at present and how efficient it could be made potentially. All homes bought, sold or rented require an EPC

Equity
The net value of the property after deducting the amount owed to the mortgage lender.

Exchange
The seller and buyer sign identical contracts and when both parties are ready to enter into a binding commitment, the solicitors in the transaction will exchange contracts over the telephone and from that moment onwards the buyer will be under a legal obligation to buy and the seller will be legally committed to sell. Contract are then said to have been "exchanged".

F is for

Freehold
This means that you own the land outright and in its entirety

L is for

Leasehold
This is ownership (usually of a flat or maisonette) for a fixed period of time - the time period agreed in the lease of the property.

Local Search
A check of local authority records to reveal matters such as planning applications, building regulation approvals, nearby road schemes, whether roads are adopted and maintained at the public expense etc.

M is for

Mortgage
A loan specifically designed to assist in the purchase of a property, where necessary.

Mortgage Deed
The document that sets out the amount and terms of the mortgage.

S is for

Stamp Duty Land Tax
A tax levied when land is bought or transferred, where the amount paid for the land is above a certain threshold. It will be calculated as a percentage of the value of the property. The percentage used will depend on the value of the land.

Survey
A physical inspection of the property carried out by a surveyor. There are differing degrees of survey depending on how thorough you want the surveyor's checks to be. Noting the definition of Caveat Emptor referred to above the onus is on you to have the property full checked prior to exchange of contracts. You will not be able to rely upon the valuation by your lender as the same is for valuation purposes only and is privy to the lender and the valuer.

T is for

Transfer Deed
The document that records and effects the change of ownership of property. Following completion it will be registered at the Land Registry.

Transfer of equity
The transfer of the net value of mortgaged property after deducting the amount owed to the mortgage lender.

W is for

Water Search
A search carried out to ascertain whether a property is connected to the mains water supply, and whether the sewers and drains are maintained and repaired by the water company.