Glossary

A-B

Adopted Highway: An Adopted Highway is a road or pavement where the Highways Agency or a local authority is responsible for maintenance.
Advance: Mortgage loan.
Adverse possession: Where a person occupies land and/or property without the express knowledge or consent of the owner, and after a specified period, may be able to acquire legal title to the land and/or property. When the title is registered at the Land Registry it is known as Possessory Title.
Agreement: See ‘Contract’.
Apportionment: This usually relates to Leasehold property where ground rent and service charges are payable for a specific period of time and will need to be apportioned because they are outstanding or have been prepaid to a date after completion of a purchase.
Arrangement fees: Fees which may apply to signing a particular mortgage deal. These are usually payable up front or simply added to the final loan amount.
Auction: The sale of a property to the highest bidder in an auction. The fall of the auctioneer’s gavel makes the contract legally binding.
Beneficial interest: The rights that an owner, or a beneficiary in respect of property held under a trust, has in the proceeds of the sale of the property.
Bacs Transfer: See below Bank Transfer.
Bank Transfer: This is the transfer of funds electronically via a bank. In most cases this will be by way of either a BACS transfer or a CHAPS transfer. Funds are usually transferred by CHAPS transfer on completion in order to ensure quick movement and to avoid any delays in completion.
Base rate: The interest rate set by the Bank of England and used by banks and building societies when calculating their rates for some mortgage products.
Borrower (also known as a mortgagor): A person who borrows money from a bank or lending institution to purchase a property, the loan is secured on the property by way of a legal charge.
Building insurance: Designed to cover homeowners in the event of re-building the property following a fire, flood or structural damage. Buildings insurance usually covers the structure and fixtures and fittings of your home e.g. roof, walls, ceilings, windows, bathroom suites, fitted kitchens.
Building Regulations: Building Regulations set standards for design and construction of buildings. They apply to most new buildings and most alterations to existing buildings.
Buyer: The person buying a property, they are also referred to as the purchaser.

C-D

Chain: A situation involving a series of connected sales and purchases, of which your transaction may be part. Usually, the chain will start with a buyer who does not have a property to sell, and will end with a seller who does not have a property to buy. A long chain can cause delay for the parties towards the end of it, when it comes to the day of completion.
Chancel Repair Liability: This is an obligation against a property which means that the current owner must fund repairs to the chancel of their local church.
Chaps Transfer: See above Bank Transfer.
Charge: A document signed by the borrower, to secure a debt against a property, e.g. the monies borrowed from a lender to purchase a house are secured by way of a legal charge against the purchased house. (See Mortgage).
Chattels: Also referred to as ‘Fixtures and Fittings’. These are items of property, such as furniture. They are normally excluded from the sale unless there are provisions to the contrary.
Common Law: Rules of law derived from customs and court decisions, rather than statutes.
Completion Date: This is the date when ownership of the property is to transfer from the seller to the buyer. The completion date will be agreed when contracts are exchanged. On the agreed completion date the seller should receive payment and the keys are handed over to the buyer. If completion does not happen on the agreed completion date the party in default will be liable to compensate the other party.
Completion Statement: A written calculation by the Conveyancer of all the receipts and payments due in respect of the transaction.
Contract: This document sets out the details of the property, the parties involved and the terms of the conveyancing transaction including the price. It will contain the detailed terms and conditions applicable to the sale.
Contract Race: When the seller instructs their lawyer to issue contracts to more than one buyer. The aim is to get the buyers to race each other to be the first to exchange.
Conveyance: The legal document transferring property from one person to another.
Co-owners: Where two or more people (to a maximum of 4) jointly own a property.
Covenant: A promise contained in a deed (e.g. a clause in a lease). The person with the benefit is known as the covenantee, and the person with the burden is known as the covenantor.
Deed of Guarantee: This is a legal document which is used to confirm the position when one person guarantees the financial obligations of another, often in connection with a mortgage.
Deed of Grant: This is a legal document which gives specific benefits (for example, rights of way) to a property owner.
Deed of Postponement: This is a legal document evidencing an agreement between two Lenders to agree to change their priority and entitlement to the proceeds of sale.
Deed of Variation: This is a legal document which changes the original terms of a title document, usually a lease.
Deeds / Title Deeds: These are the documents that establish who officially owns the property. Most properties in England and Wales are now registered at the Land Registry so the deeds tend to be old or historic documents as the Land Register is the ‘evidence’ of who owns what. For leasehold properties, the most important deed is the lease. A packet of deeds sent to a buyer after completion and registration will often contain copy planning permissions and similar items that are useful when the time comes to sell the property. All deeds should be kept in a safe place but only deeds to unregistered properties are retained by a lender whilst there is an outstanding mortgage debt. .
Deposit: This is a sum of money that represents the personal capital that the buyer is putting toward the purchase of the property. A buyer should pay the seller’s conveyancer via his own Conveyancer 10% of the purchase price at exchange of contracts, although sellers often accept less than 10%. The rest of the purchase price is due on completion
Disbursements: A payment made by a Conveyancer on behalf of their client (usually the Buyer) to a third party. In conveyancing this can include Stamp Duty, Land Registry fees and search fees on top of conveyancing fees which you pay to your conveyancer.

E-I

Easement: This is a right over a piece of land that you don’t own, for a specified purpose, for example a right of way. Easements can be created in a number of ways and may (but, then again, may not) be evident from the title deeds or the Land Register.
Energy Performance Certificate: An official document detailing the energy efficiency of a property. An EPC is a legal requirement for any residential property where it is being leased, rented, or sold.
Environmental Search: A search against a property to check whether there is any record kept to suggest that the property may be affected by contamination, flood, etc.
Exchange (of contracts): The contract between the buyer and the seller becomes legally binding when contracts are exchanged. In days gone by two pieces of paper would literally have changed hands. These days conveyancers generally exchange contracts by telephone. On exchange of contracts the deposit is paid and the completion date is set. Once contracts have been exchanged neither party is free to pull out without incurring a penalty (and these financial penalties can be substantial so no party should exchange contracts unless they are in a position to complete on the agreed completion date).
Equity: Usually means the difference between the value of a property and the amount owed to the mortgagee.
Fittings and Contents Form (TA10): This is the form the seller completes stating what items will remain in the property and what will be removed. A seller who completes a Fittings and Contents Form must do so carefully after reading the questions fully, (see Chattels above).
Flying Freehold: This arises when part of one property is built on top of part of another, and so the upper property owner does not own the building or land underneath the “flying” part.
Freehold: This is permanent ownership of land or with the freedom to dispose of it at will (subject to any leasehold or commonhold interests in the same property). If title is freehold with no leasehold interests the owner of the freehold is entitled to occupy the property for as long as they wish. If title is freehold but with an existing lease assigned to another, then the freeholder cannot occupy the property until that lease has expired.
Freeholder: This is the owner of freehold land.
Full Structural Survey: A comprehensive survey which usually includes a full inspection looking at all aspects of the building structure.
Full Title Guarantee: This is a guarantee by the seller giving certain assurances to the buyer. The seller of a property must state the guarantee in relation to the legal title they are prepared to give. This is the usual guarantee given by a property owner.
Good Leasehold: Some properties are registered with good leasehold title. This usually occurs where you cannot prove or ascertain the landlord or freeholders title or what restrictions may impact on the land or the property. The implications of this are that the Land Registry will only guarantee the title to land from the date of the registration of the lease.
Ground rent: This is the rent payable to a landlord, usually in relation to leasehold houses and flats where the tenant has paid a premium on the grant of the lease and will effectively just be renting the ground on which it stands.
Guarantor: A person that agrees to meet mortgage repayments of the borrower if the borrower is unable to meet the repayment deadlines for any reason..
HomeBuyer Report: This is a type of survey that is cheaper than a Building Survey. It rates the condition of all permanent structures included in the property e.g. garages etc, and highlights important problems that could affect the property’s value. The HomeBuyer Report can include a valuation. It is not as comprehensive as a full structural survey.
Indemnity Insurance: Insurance to cover a defect in title or missing/lack of building/planning documents.

J-M

Joint Tenants: This is a form of co-ownership of a property where, if one owner dies, their share of the property automatically transfers to the other owner, even if a Will has been made to the contrary.
Land Charges Search: Where the property is unregistered, a Land Charges search protects the purchaser against unknowingly inheriting land charges, prohibitions held against the property or land and will warn of future proposals so you are aware of any charges or responsibilities you will be taking on when you exchange contracts.
Land Registry: This is the government department responsible for recording the ownership of registered land. The Land Register shows details of parcels of land, who owns them and what rights or interests exist in or over them.
Land Registry Fee: The fee payable to the Land Registry to register any change affecting the property including a change of ownership.
Land Registry Search: An official search at the Land Registry where the property is registered to check if there are any undisclosed charges or interests registered against the property.
Lease: This is the Deed by which a party conveys land or property to another party for a specified time in return for periodic payment. The lease gives the lessee the rights to possession of the property for the lease term and sets out all the rights and obligations.
Leasehold: This is an interest in property or land under a Lease, by which the owner gives another the right to occupy or use the land or property for a period of time. At the end of the term the property passes back to the owner of the freehold (or the superior leaseholder).
Leasehold Information Form (TA7): This is completed by the seller of leasehold property and is in addition to the Property Information Form (and should be completed with the same level of care and attention). Enquiries will also be made of the freeholder / managing agent in respect of service charge / ground rent and proposed works to the property.
Lessee: Where a property is leasehold the lessee means the current owner of the leasehold property as opposed to the freeholder or landlord whose interest is subject to the lessees right of occupation until the lease term has come to an end.
Lessor: This means the landlord (usually the freeholder, although it may be a superior landlord) who is entitled to possession of the property at the end of the lease term.
Limited Title Guarantee: This is the title guarantee given by a seller where, because of their limited knowledge of the property, the full title guarantee cannot be given (e.g. a personal representative of a deceased owner or a mortgagee in possession).
Mortgage (Charge): A loan to buy a house or flat where the mortgagee lends the mortgagor money and the mortgagor grants a legal charge which is registered against the property’s title to ensure that the loan is repaid before the property can be sold.
Mortgage Deed: The document signed by the mortgagor to create a legal charge which the mortgagee’s conveyancer can register at the Land Registry
Mortgage Offer: The details of the terms upon which the mortgagee is prepared to make the mortgage loan.
Mortgage Term: The length of time agreed for the repayment of the loan.
Mortgaged: Where a property has been charged by the owner or mortgagor to the mortgagee.
Mortgagee: Somebody who provides a mortgage (e.g. a bank or building society), also referred to as the Lender.
Mortgagor: Somebody who takes out a mortgage (a borrower).
Mortgage redemption: Any mortgage secured on a property being sold must be paid off (or redeemed) at completion.

N-S

Occupier’s Consent: Any person, aged 17 years and over, who lives at the property but will not be signing the mortgage deed will be asked to consent to the mortgage being taken out and agree to move out if the mortgagee takes possession due to the default of the mortgage.
Official Copies: These are official copies of the title information held by Land Registry sent to the buyer’s Conveyancer to prove the seller’s title to the property.
Party Wall: A wall owned jointly with a neighbour and repairable at shared expense.
Planning Permission: Approval by the local authority to the building or change of use of a property or extension to an existing property.
Private Road: A road maintained by property owners rather than by the local authority. The property owners need to have rights of way over it as it is not necessarily a public access.
Property Information Form (TA6): This is completed by the seller and provides details of the property, including boundary information and addresses issues such as works carried out to the property. A seller who completes a Property Information Form must do so carefully after reading the questions fully. If information or copy documents are requested, the seller should provide these copy documents in order to avoid any delays to the conveyancing process.
Purchaser: See Buyer above.
Registration of Title: Title to a property has to be registered in the Land Register maintained by the Land Registry on completion of a purchase. Ownership and all important details of rights and liabilities are recorded on the register. The Land Registry charges a registration fee which varies according to the purchase price and the method of submission. The Land Registry’s website provides more information.
Rentcharge: Some freehold properties are subject to a rentcharge payable to the rentcharge owner. This may be to ensure income for the original land owner without the existence of a lease or it can be to ensure that estate covenants can be enforced more easily.
Repossession: When a mortgagee defaults on their mortage payments, then the mortgage lender can, in accordance with the terms and conditions of the mortgage, obtain a court order to repossess the property and then sell it so they can recover the debt
Restrictive covenant: A covenant which imposes a restriction on the use of land.
Retention: Holding back part of a mortgage loan until repairs to the property,usually detailed as a condition of the mortgage offer, are satisfactorily completed.
Searches: These are carried out by the buyer’s conveyancer to ensure there are no recorded problems with the property being sold. They include Local Authority Search, Environmental Search, Water & Drainage Search and Chancel Liability Search. Subject to the location of the property additional searches might be necessary such as mining search.
Service Charge: A payment required by a lessor or managing agent to cover the costs of maintaining and running a development (e.g. gardening and decorating and also insuring a block of flats).
Shared equity: A scheme enabling buyers to buy an equity share in a property with the aid of a mortgage, while the developer/housing association owns the remaining share. The developer/housing association would be entitled to their share of the equity of the property in the event it is sold at a later date.
Shared ownership: A scheme allowing buyers to purchase a property for as little as a 25 per cent share in a property. Rent is paid by the buyer to the Housing Association on the outstanding share held by the Housing Association. The buyer may be able to buy further shares in the future in a process known as “stair casing”.
Stamp Duty Land Tax: This is a tax payable on purchase of land over a certain price. Stamp Duty Land Tax (or SDLT) is paid to and collected by HM Revenue & Customs.
Statutory Declaration: A formal statement about a property witnessed by a lawyer. It is used to support a claim where there is no formal evidence (for example, about a right of way).
Survey: A report based on an inspection of the Property which may flag up problems with the property’s construction/condition. See Full Structural Survey and Homebuyer Survey.

T-Z

Tenant: A tenant is someone who lives in a property owned by someone else.
Tenants in Common: This is a form of co-ownership of the property. . When one owner dies, their share of the Property passes to whoever they have specified in their will or in accordance with the intestacy laws.
Title Plan: A Title Plan is based on the Ordnance Survey and shows the physical extent of the Property. Title Plans are to scale but are not detailed enough to establish boundary positions so cannot be relied upon in the event of a dispute.
Transfer Deed: A document used to formally transfer the ownership of a property from the seller to the buyer. Most transfer deeds are often on forms called TR1 and follow a standard format.
Transfer of Equity and Deed of Gift: The transfer of one owner’s share of a property to the remaining owner or to a third party, and which may be covered by an existing mortgage, which must also be amended to reflect the change in legal ownership. A deed of gift is when no payment is made for the share. A Deed of Gift may also be used in relation to an entire property, e.g. a parent gifts a property to a child.
Trust: When a property is transferred to a trustee(s) for them to hold it for the benefit of another person(s).
Vacant Possession: When there is no tenant or other person in possession or occupation of a property. So if a property is sold with vacant possession the buyer should be able to move in straight away. If a property is sold with vacant possession it should be clear of all chattels/furniture upon completion.
Vendor: A name used to refer to the seller of the property.