Glossary

Auction

When a property is sold by Public Auction, provided the reserve price is surpassed, the fall of the 'hammer' is a legally binding contract for the sale between the Seller and the Buyer. At the time of the Sale, the buyer signs the contract, which is exchanged on the day of the Sale with usually a 10% deposit paid by the Buyer. The completion date is inserted in the contract which is typically, 28 days from the day of the sale.

Charge

A mortgage deed which lenders (building societies, banks etc) require borrowers to sign. It is registered against the property until the loan is repaid and the charge is removed.

Charge Certificate

An official document issued by the Land Registry to the owner of a registered charge as proof of ownership. It includes a copy of the register and the original charge.

Chief Rent

An annual charge on freehold property found in certain parts of Britain. The chief rent is payable by the freeholder in perpetuity although the amount cannot be increased.

Completion

The date when the purchaser and vendor complete the sale of land or property. The purchaser pays the balance of the purchase price and the vendor gives possession to the purchaser.

Conditions of Sale

The Conditions of Sale are incorporated in the Contract for Sale.

Contract

The formal document which details all the terms of sale. The contract is prepared by the vendor's solicitor and a copy is sent to the purchaser.

Conveyance

A deed which transfers freehold land which is unregistered.

Deed

The legal documents relating to property. These will include all matters which relate to the property since it was built.

Draft Transfer

A legal document issued by the vendor's solicitor to the purchaser's solicitor setting out the terms and conditions of sale.

Edwardian

Property built between approximately 1901 -1910.

Elizabethan

Property built between approximately 1560 -1603.

Engrossment

When the draft deeds to a property are approved they are engrossed for the seller and purchaser to sign.

Equity

The difference between what is owed by way of mortgage on a property and the value of the property.

Exchange of Contracts

The Contracts for Sale are frequently signed by the Seller(s) and Buyer(s) prior to completion of the sale. When signed with a non-refundable deposit paid by the buyer, the contracts are 'exchanged' between the respective solicitors with a completion date inserted in the contract when the balance of the purchase price is paid by the buyer.

Freehold

A freehold interest in property means absolute ownership, although technically all land is held from the Crown.

Georgian

Property built between approximately 1714 -1800.

Ground Rent

Rent paid to the owner of freehold land by a person who has a Lease.

Guarantor

Someone who guarantees an obligation of another.

Hectare

A metric measurement of an area of land equivalent to 2.47 acres. An acre contains 4,840 square yards.

Land Certificate

Land document issued by the Land Registry to the owner of registered land as proof of ownership. It includes a copy of the register and the plan showing the extent of the land.

Land Registry

The Land Registry is a Government agency responsible for the registration of title to land. Registration enables the sale of land and property to take place without the laborious and expensive exercise of checking through title deeds.

Land Search

A formal application for an inspection of the Land Registry register. A certificate is issued showing the current situation of the land in question.

Local Search

A questionnaire sent to a local Authority by a purchaser's solicitor to verify whether a property is affected by planning proposals, tree preservation orders, etc.

Mortgage Offer

A formal offer of mortgage issued by a building society, bank or other lender once the usual formalities such as references and valuation have been carried out.

Mortgagee

The person or institution to whom the property is mortgaged.

Mortgage Indemnity

In cases where applicants require a mortgage which exceeds the lender's normal limits they may require the applicant to take out a mortgage indemnity policy with an insurance company for the difference.

Mortgagor

The person who takes out the mortgage.

Office Copies Entries

A Land Registry term for copies of registers and plans, they are officially marked "office copy" and are legally recognised.

Pre-Contract Enquiries

These are enquiries made by the purchaser's solicitor to the vendor's solicitor requiring information relating to the property being purchased prior to exchange of contracts.

Private Treaty

A phrase used to describe the method of sale of property when it is offered other than by auction or tender.

Regency

Property built between approximately 1800 -1837.

Rent Charge

A small charge reserved to a previous owner of land that is paid to him or his successors annually out of freehold land. It is not a rent.

Repayment Mortgage

A mortgage which involves the repayment of both capital and interest in monthly instalments within a specified term of years.

Reserve Price

Properties for sale by auction are normally offered subject to a 'reserve' in which case the property is withdrawn if the highest bid does not reach the reserve price.

Stamp Duty

A Government tax on the sale of land and property which is related to the sale price. As at April 2006 there is no stamp duty on any residential property under £125,000; between £125,001 and £250,000 stamp duty is 1% on the purchase price; between £250,001 and £500,000 the rate is 3% and any purchase in excess of £400,000 is 4%.

Subject to Contract

When an offer is made to purchase a property 'subject to contract' it means that all the dealings are subject to the actual exchange of the contract itself. Nothing is binding on either the vendor or purchaser until the contracts are exchanged.

Tenure

A collective term relating to the nature of the vendor's title to a property i.e. freehold, leasehold or crownhold.

Tenancy In Common

When property is held jointly between two people and each of them own an individual share which can be passed on under a Will.

Transfer

The legal transfer of ownership on completion of the sale of registered land or property.

Tudor

Property built between approximately 1485 -1550.

Unregistered Land

Land which is not registered with the Land Registry. Proof of ownership is by production of the Deeds.

Vacant Possession

A well used estate agency phrase which means that the property being offered will be vacant upon completion of the sale. The property is therefore offered free from any such encumbrances as a sitting tenant or service tenancy.

Vendor

The person who sells property or land.

Victorian

Property built between approximately 1837 -1901