COMMON PHRASES AND MEANINGS

Chain. Most sellers will be buying a new home at the same time, and the person they’re buying from is also likely to be buying another property. This is called a chain.

Completion date. This is the date when you become the owner of your new property, and can move in, having paid all money due.

Conveyancer. A property lawyer or solicitor who manages all of the legal aspects of selling or buying a property.

Conveyancing. The legal process of buying or selling a property and transferring ownership.

Indemnity insurance. Insurance taken out by conveyancing firms to cover losses to clients, arising from errors or fraud in dealing with their matters.

Land Registry. A government office that stores records of land ownership and any charges against the property such as a mortgage.

Land Registry fees. Fees paid to register the ownership of property with the Land Registry.

Leasehold. A leasehold property means you have the right to live in it and occupy the land it is on for a fixed period of time - the length of your lease. This can be a varying term but commonly 99 years, 125 years or 999 years.

Legal fee. The charge made by a solicitor or licensed conveyancer for carrying out the conveyancing and other legal work connected with buying and selling a property.

Exchange of contracts. The buyer and seller exchange contracts through their lawyers. The contract is a legally binding agreement and means they are committed to the transaction. At this time, the buyer could pay a holding deposit.

Freehold. When you buy a freehold property you own the property and the land outright and are responsible for maintaining them. See also Share of freehold.

Holding deposit. This is paid when contracts are exchanged, but not all sellers insist on a holding deposit. It is paid to the seller’s solicitor and is usually between £500 and £1000 or a percentage of the purchase price. It’s to show that you’re serious about buying the property and is only refundable in some circumstances, usually if the seller pulls out.

Searches. These are done by your lawyer to check if there’s anything that could affect the value of the property. You must have a Local Authority Search before exchanging contracts. Other searches are Land Registry searches. Environmental searches. Water authority searches. Location specific searches. Chancel repair search.

Share of freehold. This is when the freehold of the property is owned by a limited company and the shareholders are the owners of the property, usually the owners of flats within that building.

Stamp Duty. This is a tax you might have to pay if you buy a residential property or a piece of land in England and Northern Ireland.

Survey. This is done by a qualified building surveyor to check the structure for any faults. Home owners can choose from three main types of structural survey depending on how much information they want. See also Valuation Survey.

Subject to contract. This means a contract is not legally binding until contracts are exchanged and the details of the contract have been agreed.

Subject to survey. An offer is usually made ‘subject to survey’ and it’s a provisional price depending on what the survey reveals. The results can often lead to negotiation on the price if expensive faults are uncovered.