Glossary of Terms
We know that conveyancing terms can be confusing! So we have created a Glossary of Terms that you may come across to help make the whole process a lot clearer for you.
This is the date when ownership of the property passes from the seller to the buyer.
To organise the completion date the seller and buyer should discuss suitable dates amongst themselves and then inform their respective solicitors who will try to fit in with the suggested date. If there are unexpected delays, for example, if the buyer does not receive a mortgage offer in time, or if the "cash buyer" turns out to have a related sale then the completion date may have to be amended.
For this reason you should not make any firm commitments such as giving notice on a job, arranging removals or making holiday bookings without contacting us first so that we can inform you of the situation.
Only when contracts have been exchanged and a completion date is fixed can you be almost guaranteed that the completion date will be met. It is not essential for you to be present on the completion date but if you are going to be away then you should let Expert Conveyancing know.
The contract is the agreement between the buyer and the seller. It sets out the main terms of what has been agreed such as the property, the price and the names of the parties involved. It also deals with the process if something goes wrong. Rather than making the buyer and the seller meet to sign the same contract which could cost valuable time, the seller's solicitor draws up two copies of the same contract, and each party signs their own copy. When both parties are ready to legally commit, the two contracts are exchanged.
The term deposit can often be misunderstood. When most people talk about the deposit they mean the part of the purchase price that the buyer is putting down him/herself (i.e. usually the difference between the amount of the mortgage and the purchase price). But when Solicitors talk about the deposit they are discussing the money that is handed over to the seller's Solicitors upon exchange of contracts. Whilst this may be the same amount, it also might not.
After the exchange of contracts the seller can insist on receiving a deposit from the buyer (usually around 10% deposit of the purchase price).
However, as many people are not contributing as much as 10% to the purchase – especially now when house prices are so high - reduced deposits are often agreed. You should be aware though that if you are a buyer and pay a reduced deposit then fail to complete the purchase through no fault of the seller, you will (under the terms of the contract) be required to make up the deposit to the full 10%. You may also have to pay further compensation to the seller if the seller loses out financially through your failure to complete.
This is a search that is carried out to discover if there are any known environmental issues affecting the property. This includes matters such as landfill or waste disposal sites in the area, or if the property has been built on an old industrial site and whether there are any risks from contaminated land, subsidence or flooding etc.
Exchanging contracts is a crucial moment in the entire process. As soon as contracts are exchanged, the matter becomes legally binding. From this time the seller must sell, the buyer must buy and it must be done at the price stated in the contract.
Until contracts are exchanged nothing is binding within the process: so either party can walk away from the transaction without incurring any penalties.
This is a full list of the items at the property which are either included within or excluded from the agreed sale price. This form is completed at an early stage by the seller and sent to the buyer so that both parties understand what is included in the selling price.
If you are the seller, after you send us the form we will send you a copy back so that you know what you have agreed on it.
If you are the buyer, we send you a copy of the form as soon as we receive it from the seller’s Solicitors so that everything is clarified at an early stage – and any issues ironed out if need be.
This means the ownership of both the property and the land it stands on.
The Home Information Pack is provided by the seller to potential buyers. This enables the buyer to view all necessary information at the outset and is designed to speed up the sale process. Contact Expert Conveyancing for a quote on providing a Home Information Pack as part of our service to you.
Recent Government Legislation requires sellers of 4 and 3 bedroom properties to provide HIPS packs to purchasers
Indemnity insurance is taken out by all Solicitors to cover any potential losses to clients that may occur due to errors or fraud in dealing with their matters.
Oliver & Co is required by the Law Society to pay for this insurance in respect of every transaction, and some solicitors recover the amount from their clients.
Expert Conveyancing ensures that you do not have to pay this additional amount.
The Land Registry is a central body that keeps records of who owns land and under what circumstances. It was set up to simplify the Conveyancing process.
Not all land in England and Wales is registered today. This is partly due to the fact that land can only be registered after certain events occur. However, eventually all land will have to be registered.
This is the ownership of the property, but not the land on which the property stands. When the lease expires, the ownership of the property reverts immediately back to the freeholder. Most leases however have at least 70 years left to run.
This is a cost that covers the cost of the time our property lawyers spend on your Conveyancing.
If the sale or purchase doesn’t complete, then we will not charge you any legal fees. You will only be charged for any disbursements we have incurred (searches, post etc).
This is a list of questions about the property, which are sent to the Local Authority. It covers a variety of items including: whether the road serving the property should be maintained by the council, whether there have been any planning applications on the property etc.
This search is only against the property and therefore does not cover the surrounding area. A word of warning - the search will not show any Planning Permissions or matters affecting land or buildings outside the boundaries of the property. Because of this it is important that you let us know at the very beginning of the transaction if you need information on any particular point, or indeed if you wish us to ask any particular questions of the Local Authority.
We would not normally advise a buyer to exchange contracts without a completely satisfactory Local Authority search.
A mortgage is a loan that helps you buy the house. As the mortgage is 'attached' to your title deeds, you cannot sell the property without paying the mortgage off at the same time.
Contracts shouldn’t be exchanged until an acceptable written mortgage offer has been received. It is absolutely not adequate to exchange contracts if you have only had verbal confirmation from your bank or building that they will grant you a mortgage.
In many cases a mortgage may be supported by a pension, endowment or mortgage protection policy. In these situations we have to confirm to the lender before the exchange of contracts if there are any existing policies or if arrangements have been made for new policies to be brought into effect as soon as contracts are exchanged.
If you are selling your property, we’ll contact your mortgage lender at an early stage to find out how much it will cost to pay off the mortgage and then send you a copy of this figure. You may discover that you will be penalised financially for paying the mortgage off early. This is a consideration to be taken into account when agreeing upon a completion date. It can often apply if your existing mortgage was set up on a fixed rate or if you obtained a 'cashback' figure.
This is the legal charge of the property to the mortgage lender until such time as the loan is repaid.
Mortgage fees are normally charged for acting on the behalf of your bank or building society.
Expert Conveyancing do not charge this additional fee.
This is an in-depth questionnaire about the property that is completed by the sellers. It covers a wide variety of items including neighbour disputes and boundaries.
If you are buying a property, then time can be saved if you inform us early on in the process if there are any particular points about the property that concern you. We can then ask the seller's Solicitors even earlier the relevant questions.
If you are selling and the buyer's Solicitor asks a question to which you do not want to answer, for whatever reason, it is essential that you discuss it with us. Failure to disclose information could give the buyer grounds for taking action against you.
This is the final payment of a mortgage loan.
This is the penalty sometimes incurred if paying off a mortgage early.
Expert Conveyancing do not charge an additional fee to redeem (pay off) your existing mortgage.
This specially arranged search pack includes Local Authority, Water/Drainage and Environmental searches - all for one set fee.
This is simply a Government tax to be paid for by the buyer of the property and only affects you if you are buying a property for more than £125,000.
If you buy for exactly £125,000 or less you pay nothing in stamp duty; if you pay from £125,001 to £250,000 stamp duty is charged at 1% on the whole of the purchase price. From £250,001 to £500,000 it is charged at 3%, and above £500,000 it is charged at 4%.
The survey is a report carried out by a Surveyor on the physical state of the property you are buying.
If you are buying a property you should be aware that the property is "sold as seen" and so it is your responsibility as the buyer to discover any physical defects of the property by using surveys and inspections.
Most houses are bought with the assistance of a mortgage and so the bank or building society will need a mortgage valuation. However, this is not a survey - this merely means that the property is of sufficient value to protect the lender's interest. Our advice is that you should at least have an RICS Homebuyer's Report prepared by a qualified Surveyor. This will cost more than a mortgage valuation but it is recommended.
It is possible to go even further and have a full structural survey done on the property but only choose this option if the Surveyor who carries out the Homebuyer's Report thinks any matter should be investigated further.
The title deeds are documents that firstly act as evidence that the person who is selling the property does own it, and secondly they set out any obligations or rights that affect the property.
If you are selling a property, a great deal of time can be saved if we can attain your title deeds at an early stage. If you have a mortgage then your bank or building society will be holding your title deeds. In order to attain these we will need to know your mortgage account number and the name and address of the lender. Some lenders charge a fee to send out your deeds but this will normally be added to your mortgage account.
The transfer deed is the document that passes the ownership of the property from the seller to the buyer. It is dated with the completion date, and after completion is sent to the Land Registry.
The Land Registry needs this document to change their records, and then show the buyer as the new owner of the property.
This search provides information on the water drainage of the property. This includes confirmation on whether the property is connected to a public or private water supply. It also includes confirmation on how the property is billed for the water and wastewater charges (whether it is rateable value or water meter). It also includes confirmation about whether the property is connected to a public sewer or septic tank or other private disposal facilities and also whether the property is close to, or is affected by, water mains or public sewers.