Alphabetical list of
conveyancing terms
Bankruptcy search
Formal enquiry made by the buyers solicitor on behalf of the lender to
ensure that the buyer is not bankrupt. Usually done just before completion.
Chancel search
There has recently
been a case decided by the Courts whereby a Church relied upon a
covenant made in medieval times by the then owner/occupier of a
property whereby the present owner/occupier had to pay a sum of
£95,000.00 to a Church towards its maintenance. We are
therefore offering all of our Clients, a Chancel Search at a price
of £75.00 plus VAT to ascertain whether or not your property is at
risk. If the Search shows that property is at risk, then we can
disclose the result of the same to your Seller’s Solicitors and
request your Seller to pay Indemnity Insurance against the event
that a Church could in the future request monies to maintain it.
Completion
The date when the property is transferred by the seller to the buyer. On
the day agreed for completion set by the contract the buyers solicitors will pay
to the sellers solicitors the balance of the purchase price (taking into account
any deposit already paid) and the sellers solicitors will provide to the buyer
the transfer document and the title deeds to the property. The Completion Day is
the day when the seller must move out and the buyer is entitled to move in.
There is no set time of day for this to happen.
Contract
Legally binding agreement prepared by the sellers solicitor which sets
out the terms of the sale including the a description of the property to be sold
and the sale price. There is no binding agreement until contracts are
"exchanged".
Conveyancing
Formal name for the process by which the ownership of land is
transferred from one person to another.
Deposit
The sum paid by the buyer to the seller when exchange of contracts takes
place (technically 10% of the sale price but may be less if agreed).
Environmental search
A pre-exchange search which is of growing importance nowadays. This
shows any potential contamination or past industrial use of the land which might
be the owner's responsibility to clear up.
Exchange of contracts
The point at which the contract signed by the seller is exchanged for
the contract signed by the buyer and the deposit paid to the seller's
solicitors. When exchange of contracts takes place both the seller and the buyer
are legally committed to complete the transaction on the completion day at the
agreed price. Neither can pull out without serious legal and financial
consequences.
Fixtures & Fittings List
The form completed by the seller to set out which fixtures, fittings and
contents at the property are included in the sale. This form will also set out
detail of any items which are not included in the sale which the seller may be
prepared to sell.
Freehold
The highest form of ownership. A 'freeholder' may create leases in
favour of other people or sell the property without usually needing the consent
of anyone. There is no time limit on a freehold; in theory the 'freeholder' and
his heirs own the property forever.
Land Registry
The body which records details of all land in England and Wales and
keeps a record of transactions affecting land and details such as its current
owners and any mortgages or restrictions on it. Not all land details are
currently recorded at the Land Registry as it has not until quite recently been
compulsory to register land on a transfer of ownership. The Land Register is now
open to the public and anyone may inspect it on payment of a fee.
Land registry fee
Fee payable to the Land Registry to register the buyer as the new owner
of the property and/or to register a new mortgage.
Land registry search
Searches made to ensure that no changes have been made to the Land
Register nor any mortgages created by the seller which have not been disclosed
to the buyer.
Lease
A legally binding agreement by the freeholder or 'landlord' allowing someone
else to occupy property for a defined period, provided they pay rent. Usually
contains many other conditions with which the 'leaseholder' or 'tenant' has to
comply or the lease can be terminated by the landlord. The tenant's rights under
the lease can usually be sold on to a buyer, who then himself becomes the tenant
for the remainder of the 'term'. If the Lease allows this, a tenant can create a
lease himself in favour of a sub-tenant who will himself be the tenant's tenant.
This is fairly common with business property and in larger cities.
Local search
Standard form of enquiries of the Local Authority to find out amongst other
things whether or not the property is likely to be affected by Tree Preservation
Orders, Smoke Control Orders, Demolition Orders and others. In addition the
search will reveal details of any Planning Applications relating to the
property, if the property is in a conservation area and also whether the roads
serving the property are adopted or are the responsibility of the owners.
Mining report
Form asking the Coal Authority about deep seam and opencast mining works
in the locality of the property and any compensation claims made in relation to
defects resulting from them. Also shows the location of any nearby old
mineshafts, which are quite common in some areas.
Mortgage
A loan made to a buyer to assist with the purchase price. Contracts
should never be exchanged until a satisfactory mortgage offer is received, if
the buyer needs one.
Mortgage Advance
The total amount lent by a lender under a mortgage. This might vary from the
amount of the actual cheque as lenders often make deductions from it.
Office copy entries
Official copies of the Land Registry's entries for the property, needed to prove
the seller's ownership.
Property Information Form
Another standard form completed by the seller which is a detailed questionnaire
designed to establish what the seller knows about the property. The buyer can
sue the seller if the replies given are found to be deliberately misleading.
Stamp Duty
The tax payable by the buyer of a property to the Government. The tax payable is
calculated as a percentage of the total purchase price of the property. At the
moment, if the price is above £125,000 (and you are not in an exempt area) you
pay 1% of the total price; this goes up above £250,000.
Survey
Report carried out by a surveyor upon the physical condition of a property.
There are several different kinds of report, depending on the detail the buyer
wishes to have. Where the buyer is purchasing with a mortgage then the lender
will require a mortgage valuation. This is only a surveyors opinion as to the
current market value of the property and is intended simply to ensure that the
lender is not lending more than an acceptable proportion of the value of the
property. See our conveyancing section for more detail, but we would always recommend a
Homebuyers report prepared by a qualified surveyor which will provide a more
detailed opinion of the property and will consider not just the value of the
property but also the general condition of the property and any remedial work
which may be needed. It will also provide an indication as to whether any
further enquiries should be made. In some circumstances a full structural survey
may be needed; this is the most detailed but also the most expensive.
Title deeds
The documents which detail the property and indicate its current owners. They
will also show details of any rights which the owners of the property have over
any neighbouring property and any rights which any other persons have over this
property. They also show whether there are any mortgages on the property, and if
you have a mortgage the deeds will be kept by the mortgage lender.
Transfer Deed
The Land Registry form prepared by the buyers solicitor which transfers
ownership of the property to the buyer.
Water Search
Another pre-Exchange search, which is carried out with the Water supply
company to establish that the property has mains drainage and water. It is
useful to establish whether there are any lengths of private drain, pumping
stations, etc which might not be obvious from inspection but for which the buyer
might be liable.
