DEFINITION OF WORDS AND TERMS

The buying and selling process can seem somewhat daunting.  The team at padstones will always endeavor to make the process as smooth and simple as possible.  We have produced a list of words and terms used in the conveyancing process which we hope will help make it easier for buyers and sellers to understand the buying and selling  journey.

Completion
The point at which the balance of the purchase price is paid and the purchaser is given keys to the property.

Conveyancing
Name given to legal procedure required to transfer ownership of a property from one party to another.

Deeds
Legal documents relating to a property usually held by the building society or bank if the property is subject to a mortgage.

Energy Performance Certificate
Energy Performance Certificates (EPC) are being introduced to help improve the energy efficiency of buildings.

If you are buying or selling a home you now need a certificate by law.
By October 2008 all buildings, whenever they are built, sold or rented out, will require one. The EPC provides 'A' to 'G' ratings for the building, with 'A' being the most energy efficient and 'G' being the least, with the average to date being 'D'.
Accredited energy assessors produce EPCs alongside an associated report which suggests improvements to make a building more energy efficient.
Click here for more information.

Exchange of Contracts
Point at which seller and buyer exchange binding contracts with the payment of a deposit at the same time agreeing a completion date.

Freehold
Legal ownership of land.

Gazumping
This word is used when a vendor has accepted an offer but subsequently accepts a higher offer from a different purchaser.  This usually takes place in a buoyant market.

Gazundering
This word is used when the agreed buyer of a property lowers their offer at the last minute and refuses to pay the full price originally offered.  This usually takes place in a sluggish market.

Ground rent
Amount paid annually by a leaseholder to a freeholder.

Home Information Packs
Since 14th December 2007 every home put on the market, no matter what size must have a HIP.  It brings together information at the start of the process – such as sale statement, local searches and evidence of titler.  The pack also includes an Energy Performance Certificate that contains advice on how to cut C02 emissions and fuel bills. For more information please visit: www.homeinformationpacks.gov.uk

Leasehold
Land or property held under a lease.

Mortgagee
A lender of money to be secured on the property in question.

Mortgager
The borrower upon whose property the loan is secured.

Probate
Legal term applied to the process of proving that a will is valid. Click here for more information about Probate.

Purchaser
The name given to the buyer of a property, house or home.

Searches
Procedure undertaken by a solicitor or legal representative during the conveyancing process to establish whether any issues exist which may adversely affect the property which is to be purchased.

Stamp Duty
A Government tax levied on the purchaser of a property and calculated as a percentage of the purchase price.

Residential property - purchase price                 Rate of Stamp Duty Land Tax
Up to £175,000                                                                         0%
£175,001 to £250,000                                                               1%
£250,001 to £500,000                                                               3%
£500,000  or more                                                                    4%

Subject to Contract
Agreement between vendor and purchaser subject to a contract normally prepared by the vendors solicitor.

Survey
There are generally three common types of survey as follows:-

Valuation
Prepared for house purchase, mortgage purposes, insurance or probate.

Homebuyer Survey and Valuation
(carried out by a Chartered Surveyor and designed to focus on urgent or significant matters requiring attention).

Building Survey and Valuation
(a more detailed inspection suitable for large or older type buildings).

Tender
In the process known as “For Sale by Tender” the asking price will not be stated.  Instead written offers will be invited and a closing date for such offers published.  All offers are normally opened at the same time.  The vendor is not committed to accepting the highest or any offer.

Vendor
Legal term for the person that is selling a property, selling a house, or indeed selling their home.