Glossary

Additional Enquiries: These are further questions raised by your Solicitor when they receive the contract documents. These are raised on the clients' behalf, and can sometimes be required by the lender.

Buildings Insurance: This is required from exchange of contracts to cover the house you are buying against damage. If you are selling however, you must pay your buildings insurance up to the date of completion. If the property were leasehold the freehold Owner/management Company would arrange this.

Building Survey: A full inspection of the property by a surveyor, on behalf of the buyer of the property. Fee to be paid by the buyer.

Collateral/Security: the property, which the lender can sell to repay the loan if the borrower does not keep up the mortgage payments.

Completion: This is the final legal transfer of ownership of the property. Upon receipt of the funds, the purchaser gains the legal right, and rights of occupation.

Completion Statement: This is supplied by your Solicitor detailing all monies received & all amounts to be paid by us, on your behalf.

Content Insurance: This is cover for all your personal belongings against theft, damages etc.

Contract: This is the legal agreement between the sellers, and the buyer. The terms contained in the contract are binding upon exchange of contracts. This is one document that all parties are required to sign.

Conveyancer/Conveyancing: A solicitor or licensed conveyancer who deals with the legal aspects of buying or selling land/property. Conveyancing is the legal work involved in the sale and purchase of land/property.

Deposit: The deposit paid, normally 10%, towards the total price of the property. This is payable on exchange of contracts, but counts towards the purchase price.

Environmental Search: This will show the level of risk from flooding, landfill, radon gas, and other issues.

Exchange of contracts: This is the point when both the buyer and the seller become legally bound to the transaction, by the terms of the contract. The buyers buildings insurance should start from this date.

Freehold: This is outright ownership of the property and the land on which it stands.

Gazumping: When the Seller accepts an offer, but then accepts a higher offer from someone else, before exchange of contracts.

Ground Rent: An annual charge payable by leaseholders to the freeholder.

Guarantor: A person who promises they will pay the borrowers debt, usually if the borrower fails to.

Home-buyer's survey: A surveyors report on a property. This is less extensive than a building survey and is paid for by the purchaser.

Land Charges Search: A search against the Seller and predecessors in title when the title of the property has not yet been registered at the HM Land Registry.

Land Registry Fee: A standard fee paid to the Land Registry to register the change in ownership on the charge/land certificate.

Leasehold: The right to possession, but not ownership, of a property for an agreed period of time i.e. 99 years. Ultimate ownership remains with the freeholder.

Lender: The bank/building society where you have your mortgage. Sometimes referred to as the mortgagee.

Lessee/lessor: The lessee is the person to whom a lease is granted-the tenant. The lessor is the person who grants the lease - the landlord.

Life Assurance: An insurance policy that pays a lump sum on death. Often taken out with a mortgage to provide money for the loan to be repaid if the borrower dies during the term. Mortgage lender will usually say whether this is required, or recommended.

Local Authority Search: Questions your Solicitor will ask the local authority regarding plans for new road building, planning permissions for any building work previously carried out.

Mortgage: Has a specific meaning in law but has come to mean a loan with property as security.

Mortgage Deed: Required by the lender. Used to register the lender's charge against the property. All purchasers are required to sign this document.

Mortgagee/mortgagor: The mortgagee is the lender who lends money to the buyer, the mortgagor. Solicitor acts for the lender as well as the buyer.

NHBC Guarantee: A 10 yr. guarantee, provided by the National House Building Council, that the builder will put right serious defects affecting a newly-built property.

Office Copy Entries: An official copy of the registered title provided to the buyers' solicitors, at the cost of the Seller.

Searches: There are various searches that either must, or can be done on a property you are hoping to buy. Some are required by your mortgage lender, whilst others are optional. Your solicitor will provide advice regarding any specific searches that ought to be considered.

Specialist Report: A report required by the lender into particular defects discovered at the property to be purchased, such as serious structural movement or dry rot, before they will agree the mortgage.

Subject to contract: The phrase used before exchange of contracts which allows either party to withdraw without incurring a penalty.

Surveyor/Valuer: The person qualified by the Royal Institution of Chartered Surveyors to carry out valuations and surveys of properties.

Title Deeds/Title document: The legal documents that provide proof of ownership of a property.

Transfer: A form that provides details of the transfer of ownership to be entered on the Land Registry register. Used to effect transfer of ownership on completion. This is one document all parties are required to sign.

Valuation: An inspection of the property to ascertain its acceptability to the lender as security against the mortgage loan, for which the borrower may have to pay.

Vendor: The Seller of the property.

Water Search: Also known as a drainage Search. This is carried out with the local water authority and confirms the location of the water pipes, whether the property is connected to mains drainage, if not where the nearest mains drainage is located.