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Conveyancing Glossary

Read our extensive conveyancing glossary designed to help both First Time Buyers & experienced movers alike.

Agreement

Often used as a word for contract.

Breach of Contract

Once contracts have been exchanged, if either party pulls out and does not complete the conveyancing process they are in breach of contract and the non-defaulting party can legally seek reparations.

Boundaries

Boundaries define the extent of the property in question and are usually marked with fencing, hedging or walls. They are usually shown explicitly on the deeds plan.

Building insurance

Once contracts have been exchanged, you will in most cases become responsible for the new property’s building insurance. This must cover the cost of rebuilding the entire property if it is destroyed. Your mortgage lender may want to see proof of this insurance.

Caveat Emptor

This literally translates to ‘let the buyer beware’ and means the buyer is responsible for finding out the condition of a property using a surveyor.

Chain

Where the success of one purchase depends on the sale and purchase of another. Several ‘links’ in the chain can make the conveyancing process particularly complicated.

Charge

A debt secured against your house or another property that you own.

Chattels

Items of personal property left over at a house and included in the purchase price, such as furniture. These are described on the Fixtures, Fittings and Contents form.

Completion

Final legal stage when the property ownership passes to the buyer

Completion date

The legal end of the conveyancing process – the point at which full payment has been made and the title deeds transfer from one party to another. In everyday usage it refers to handing over keys and physically moving into the new property.

Completion statement

A documented financial breakdown of the property purchase normally sent after exchange but before completion. This important letter details the conveyancer’s full fees including disbursements and VAT.

Conservation area

If the property to be bought lies in a conservation area protected by a local authority, it may be subject to exterior planning restrictions to preserve the look of the area.

Contract

A legal document that sets out all details regarding a property purchase including information on the property itself, the buyer and the seller.

Conveyance

A common name for the legal document that officially confirms the sale or purchase of a property or piece of land. Nowadays the transfer is conducted using a Transfer deed/document although in some cases a conveyance may be used.

Conveyancing

The legal and administrative process of transferring property title from one party to another. This is most often undertaken by solicitors or licensed specialists and is a necessity for most property sales taking place within the United Kingdom.

Conveyancer or solicitor

Someone qualified to manage the conveyancing process

Conveyancer

Conveyancers are those who have undertaken the conveyancing process. Traditionally they are solicitors, but in recent years specialists have appeared who solely offer conveyancing as a dedicated service. These may be solicitors who have decided to specialise, or licensed and regulated firms that are not qualified as solicitors.

Covenant

Obligations and restrictions, known as ‘positive’ and ‘negative’ covenants respectively, that can be attached to a property. Obligations require you to maintain something within your boundaries whilst restrictions prevent the construction of specific structures.

Deeds

Official documentation outlining the owner of a property which is in possession of the owner or mortgagees in the event the property is mortgaged.

Deposit

A deposit is paid to the seller, usually via the conveyancer, on exchange of contracts: this is normally 10% of the purchase price although is negotiable subject to agreement from the seller.

Disbursements

Disbursements are fixed costs incurred by a conveyancing provider undertaking the conveyancing process on your behalf, which are then passed on to you. Examples include local authority and bankruptcy searches.

Draft contract

The initial contract and papers prepared by the seller’s solicitor and sent to the buyer’s solicitor outlining what is being sold.

Drainage search

A check carried out during the conveyancing process that ensures a property is connected to both fresh and foul water sewers.

Easement

The right of way over another person’s piece of land.

Enquiries

Questions from the buyer’s conveyancer to the seller’s solicitor

Equity

The difference between the value of a property and the figure owed to the mortgagee.

Energy Performance Certificate (EPC)

This assesses your property’s energy efficiency and environmental impact. Graded from A for the most efficient to G being the least.

Exchange of contracts

Contracts are signed and exchanged through your property lawyers. At this point the process becomes legally binding. Past this point neither buyer nor seller can pull out of the transaction without possible legal consequences.

Fixture, Fittings and Contents form TA10

Provided by the seller’s property lawyer, this form sets out what parts of the property are included in the sale and must be completed and signed off by the buyer before purchase.

Freehold

A freehold property involves a permanent change in ownership of land or a building that is not time-sensitive and will not revert to another owner unless a new sale is agreed. Compare with leasehold. When a property belongs entirely to the owner

Gazumping

When a seller accepts a verbal offer on their property from one buyer, but then accepts a higher offer from another potential buyer.

Ground rent

Paid by a lessee to a lessor in the event a property is leasehold, usually in yearly amounts.

Insurance Policy

An insurance policy taken out to protect the buyer against any issues incurred by a defect in the legal title.

HM Land Registry

The government body that deals with ownership of property and land throughout England and Wales, but not Scotland and Northern Ireland.

Index map search

A search undertaken at the Land Registry to determine whether a premises is registered or unregistered.

Land certificate

The official certificate issued by the Land Registry when a property is registered detailing ownership and interest in the property without any legal charge.

Land Registry office copies

The legally permissible document outlining who owns your property, held by HM Land Registry. It is requested by your conveyancing provider during the conveyancing process.

The Law Society

The Law Society is the representative body for solicitors in England and Wales.

Lease

Legal document issued by a freeholder granting tenure for a given period of time and setting out the obligations of each party

Leasehold

In contrast to a freehold property, a leasehold property is one where a party buys the right to occupy land or a building for a given length of time, which may extend into hundreds of years. Compare with freehold.

Leasehold information

Detailed information about the property being sold, provided by the managing agent or the freeholder. Includes details of service charges, ground rent, general expenditure, insurance, maintenance etc

Leasehold property information form

An alternative version of the Property Information Form (SPIF) that is used when dealing with leasehold properties.

The Legal Ombudsman

The Legal Ombudsman offers an independent and impartial complaints handling service to all those that are not happy with their legal professional. Once you have complained to your own solicitor they have 8 weeks to deal with your complaint. If you are not satisfied by the outcome of the complaint, then you may escalate your complaint to the Legal Ombudsman.

Local authority searches

These searches are conducted during the early stages of the conveyancing process and are designed to protect you from council plans that may affect the state of your property once you’ve moved in. Note that this only refers to things affecting the land up to the legal boundaries of your property: for a more comprehensive check you’ll need to ask your solicitor to perform a ‘planning search', which will cost approximately £25 more.

Management company

An organisation set up to fulfil a landlord’s obligation under a lease.

Maintenance/service charge

Costs incurred by the freeholder for repairing and maintaining common parts of the building occupied by leaseholder

Mortgage

Allows you to loan money from a bank or building society so that you are able to buy a house.

Negative equity

An issue where the amount of money you owe on the property, usually via a mortgage, is more than the sale value of the property.

NHBC

National House Builders Council provide 10 years’ warranty and insurance for new homes.

Occupier’s consent

Required when a person lives at a property but will not be signing the mortgage deed. Consent is asked to allow the mortgage being taken out by the owner, agreeing to move out if the mortgagee takes possession due to the default of the mortgage.

Office copy entries

A set of official copies of the register which can be obtained from HM Land Registry confirming the ownership of the property.

Power of attorney

This document allows a person to act as a legal representative of somebody else with their consent. These are often used to protect the financial interests of the ill or the elderly.

Pre-completion searches

These are searches undertaken by your conveyancing provider before contracts are exchanged. They check to see if you have been bankrupt and that the property in question is legally owned by the seller. Also known as priority searches.

Protocol forms

Papers are sent out to seller and buyer from their solicitor to complete and return to start the proceedings.

Property Information Form TA6

Sellers are required to fill this form in and return it to their conveyancing provider. It asks questions regarding boundaries, disputes, services, relationships with neighbours, legal rights, restrictions and other important information. Failure to provide correct information is an offence; in cases where you’re unsure your solicitor should be able to help.

Purchaser

Another term for buyer

Redemption settlement

This is the sum of money transferred to a lender if you decide to pay back your mortgage early, consisting of the outstanding lump sum balance in addition to a penalty fee charged to cover the interest the lender will subsequently lose out on.

Reservation fee

An administration fee charged to cover the cost of reserving a mortgagor’s entitlement to a loan on certain terms or a fee paid to a builder or property developer to reserve a new property.

Searches

Enquiries raised by the buyer’s conveyancer to various authorities to establish any issues likely to affect the property now or in the new future. Eg Local Authority for planning, Water and Environmental

Service charge

A charge paid to the landlord to cover any repairs, maintenance or improvements that need to be made to a property.

Solicitor

The legal conveyancing process is traditionally undertaken by a solicitor who acts on your behalf once instruction has been received. In this instance conveyancing is one of the services the solicitor offers. See conveyancer.

Stamp Duty

Buyers pay stamp duty based on the purchase price of the property in question, with some exemptions e.g. First Time Buyers up to a purchase price of £300,000. The money accrues to HMRC.

STC

This is the abbreviation for Sold Subject to Contract.

Subject to contract

A term used during contract negotiations, nothing is legally binding until contracts are exchanged.

Subsidence

Where a property moves due to inadequate foundations or significant change in underlying ground resulting in the instability of a building structure.

Tenure

Freehold or leasehold property ownership.

Third party rights

When someone other than the legal owner of a property has the right to use or control the land of which they have no ownership.

Title deeds

Title deeds provide proof of ownership on a particular property. Mortgage lenders will hold onto title deeds as they legally own the property until the mortgage is paid back. Once you have instructed a solicitor they will arrange to obtain the title deeds from the lender, which may take up to 3 weeks.

Transfer deed

A document that legally transfers your property into the name of the buyer. It must be signed by you in the presence of a witness.

Transfer of equity

The document transferring the ownership of a share or interest in a particular property from one person to another.

Wayleave agreement

A formal agreement with a property owner enabling a service provider (electricity or telephone company) to install piping or cabling through or over the property.

Vendor

Another term for the seller