Estate agents and conveyancers tend to use legal jargon which can cause confusion.
We have put together a jargon busting guide to assist with the legal terms you may come across when buying and selling properties
- Appraisal – the same as a valuation, an estate agent will give you a market appraisal/valuation. This will give you an idea of what your property is worth
- The Applicant – the person interested in buying the property
- The Vendor – the seller of a property
- Deeds – the legal documents which assign ownership of a property, these date back to when the property was built
- Title document – since the early 1980’s it is a legal requirement when ownership of a property changes hands, your deeds are registered at the land registry. The title document is essentially your deeds which are now held online once your property is registered. You can purchase a copy of your title document from the land registry for £3.
- Freehold – Owning the property and land it is on
- Leasehold – the leaseholder is granted the right to use the property/land for a period of time
- Home buyers report – A survey which determines whether there are any structural issues with the property or any hidden issues
- SSTC – Sold subject to contract – an offer has been accepted on the property but no legal documents have yet been signed
- Sole agent – one agent marketing a property
- Multi agent – multiple agents market a property
- Instruction – you instruct an estate agent to sell your property
- Mortgage in principle – confirmation from the mortgage company they may be willing to lend you the money however complete checks have not yet been completed
- Mortgage offer – a letter from the mortgage company confirming they are willing to send you the money to buy the property
- EPC – Energy performance certificate – by law you have to have an EPC if selling a property. They expire after 10 years
- Chain free/No chain – there are no other property sales linked with the property being sold. These tend to complete quicker than if you were in a chain
- Chain – Refers to the number of property sales linked together. The exchange of contracts and completion will need to take place at the same time
- Exchange – you exchange contracts and usually a deposit is paid by the buyer therefore you are legally obligated to complete on the sale on a certain date
- Completion – Ownership of a property changes hands
- Stamp duty – Government tax which you pay if your property is over a certain price or you own more than one property
- Early repayment charge – A charge you may pay for settling your mortgage before your term ends
- Tenants in common – You own the monetary share of the property each, for example one person owns 50% the other owns the other 50%
- Joint tenants – You own 100% of the property jointly
- Sole mortgage – You have a mortgage in your own name
- Joint mortgage – You have a mortgage jointly between you
- Joint borrower sole proprietor mortgage – One person owns the property but both people are liable for the mortgage
- Probate – A legal document issued by the high court which gives the executors of a persons Will the authority to dispose of their assets
- Transfer document – The legally binding contract you will sign that transfers the properties rights from you to the buyer
- Financial Power of attorney – A legal document giving another person permission to manage their finances
This information is an opinion of the staff as DSB Estate Agents, using our opinions to try and help assist you and give advice on moving home/selling a property. This is not legal advice nor fact and you must do your own research or take legal advice when following our guidance.