Here you can find the definitions of professional and technical terms used in the conveyancing process that can be confusing particularly for first time purchasers.
- Advance
The mortgage loan - Bridging loan
Short-term loan enabling the borrower to bridge the gap between the purchase of a new house and the sale of the old house - Collateral
Property pledged as security against the repayment of the loan - Completion
The final legal transfer of ownership of the property - Contract
The written legal agreement between the seller and the buyer with regard to the property - Conveyancer
The solicitor or legal executive/licensed conveyancer who arranges the legal aspects of selling and buying property - Deeds
The legal documents which entitle the owner to the property - Disbursements
The fees for land registry and local searches which are payable to the conveyancer by the buyer - Equity
The difference between the value of the property and the amount of any loans secured against it - Exchange of contracts
The point where both the buyer and seller are legally bound to the transaction and risk regarding the property passes to the buyer - Freehold
Ownership of the property and land upon which it stands - not usually available for flats - Gazumping
The situation that arises when a Seller accepts a higher offer from another Buyer when he has already accepted an earlier lower offer from a different Buyer. The first Buyer is said to be gazumped and then has to decide whether to match that offer increase it, or lose the property - Gazundering
Similar to gazumping but in reverse. This arises where a Buyer waits until exchange of contracts is imminent and then dramatically reduces the offer - Home Information Pack (HIP)
Home Information Pack - Abolished in 2009. Unlikely to return! - Ground rent
Annual charge payable by leaseholders to the freeholder - Homebuyers Report
Surveyors report on the property - less extensive than a structural survey - Indemnity
Single payment for an insurance policy to cover the value of the property to the lenders - when they lend a high percentage of the purchase price - Land Registry Fee
A fee payable to the land registry to register the transfer of ownership of the property - Leasehold
Ownership of the property but not the land on which it stands so that when the lease expires ownership of the property reverts to the freeholder - Lessee
The person to whom the lease is granted - Lessor
The person who grants a lease - Mortgage
A loan made against the security of the property - Mortgagee
The person (or organisation - eg bank or building society) lending the mortgage advance - Mortgagor
The borrower to whose property stands as security to the mortgage loan - Principle
The amount of the loan on which interest is calculated - Purchaser
The person buying the property. Now more usually called "The Buyer" - Redemption
The final payment of a mortgage loan - Redemption Fee/Redemption Interest
The charge made by some lenders if a mortgage is ended early - Stamp Duty Land Tax
A Government tax. Currently payable on properties over £125,000.00 (£150,000.00 on commercial property) Rates of tax vary. - Subject To Contract
The period before exchange of contracts which allows either party to withdraw without incurring any penalty - Survey
Full inspection of the property by a surveyor, usually on behalf of a buyer - Term
The length of time over which a mortgage loan is to be repaid or the length of a lease. - Valuation
Inspection of the property to ascertain its acceptability to the lender as security against the mortgage loan, for which the borrower must pay - Vendor
The person selling the property more commonly called "The Seller" now