A
ABSTRACT OF TITLE
A schedule listing the documents which set out the history of ownership of a property.
ADOPTED HIGHWAY
A road maintained by a Local Authority.
ADVANCE
The original amount of a mortgage loan on a property.
ASSENT
A formal document required to transfer ownership of property to a person entitled to the property following the death of the owner.
ATTORNEY
Someone appointed formally to act on behalf of another either generally or for a specific purpose.
B
BANKRUPTCY SEARCH
As it is an offence for a bankrupt individual or body to obtain credit, if a mortgage is involved, such search is done against the names of the Buyer by the Buyer’s solicitors.
BRINE SEARCH
A search to establish if a property might be affected as a result of disused workings near the property.
BUILDING REGULATION APPROVAL
Approval by the local authority on the design and materials.
BUYER
Someone who buys a property.
C
CHAIN
Where a property seller is also buying another property this is a chain of transactions and some chains can have many links.
CHAPS TRANSFER
On the day of completion the balance of the purchase price is paid by transfer of funds between solicitors’ client accounts by electronic transfer. CHAPS means Clearing Houses Automated Payment System.
CLEARED FUNDS
For example a cleared cheque, banker’s draft, cash, on a CHAPS, telegraphic transfer or BACS payment. The solicitor would require Cleared Funds in order to complete any purchase or sale where there is negative equity.
COMMONS REGISTRATION SEARCH
A search at the local authority to check the property is not registered as common land or part of a village green resulting in third party rights over the property (e.g grazing) resulting in the enjoyment of the property being limited.
COMPLETION
The moment when the buyer becomes the new owner of the seller’s house and the day the seller must have left the property.
COMPLETION DATE
This is the day that ownership of the property passes from the seller to the buyer.
COMPLETION STATEMENT
A written calculation of all the receipts and payments due in respect of the transaction.
CONTAMINATED LAND
Land affected by contamination which could arise from a past use of a property (e.g. oil refinery) or by things stored on the property in the past (e.g. petrol station).
CONTRACT
The form of legal agreement prepared in duplicate for signature by the seller and buyer setting out all the legal rights and obligations agreed between them.
CONVEYANCE
A document transferring ownership of an unregistered property from one person to another.
CONVEYANCING
The legal work needed to buy and sell properties.
CO-OWNERS
Where two or more people own jointly the property and all are legally entitled to the property.
COVENANTS
Legal obligations contained in a Deed.
D
DEED OF COVENANT
Legal obligations which either require a party to refrain from doing something (e.g. not to use a property for business purposes) or to advise a party to do something (e.g. repair a fence).
DEED OF GIFT
A document transferring the ownership of property from one person to another without any payment being made for it.
DEED OF GUARANTEE
A document used where one person agrees to be responsible for someone else’s debt or mortgage obligations if that person fails to carry out their own obligations.
DEED OF POSTPONEMENT OR PRIORITY
Where a mortgagee agrees to their mortgage ranking after another lender’s mortgage.
DEEDS
The official documents confirming who owns a property which are in the possession of the owner or mortgagees if the property is mortgaged.
DEFECT IN TITLE
A problem with the legal ownership of the property which suggests that the legal owner may be sued or may be asked to release their interest in a property.
DEPOSIT
This can cause confusion. When most people talk about the deposit the buyer is putting down i.e. usually the difference between the amount of the mortgage and the purchase price. When solicitors talk about the deposit they are talking about the money that is handed over to the seller’s solicitors upon exchange of contracts. This might be the same amount, but if may not.
DISBURSEMENTS
Payments made on your behalf e.g. search fees. The amounts vary in Leeds, Bradford and Wakefield.
E
EASEMENT
The right of a person over another person’s piece of land (e.g. right of way).
ENVIRONMENTAL SEARCH
A search against a property to check whether there is any record kept to suggest that the property may be affected by contamination.
EQUITY
Usually means the difference between the value of a property and the amount owned to the mortgagee.
EXCHANGE OF CONTRACTS
The formal exchanging of the two parts of the contract when the seller and buyer become legally bound to complete on an agreed date and in the case of the seller, to move out of the property.
F
FIXTURES, FITTINGS AND CONTENTS FORM
A standard form where the seller sets out all those items in the property which they have agreed to leave as part of the sale price and which is attached to the contract.
FLYING FREEHOLD
This arises when part of one property is built on top of part of another property and so the upper property owner does not own the building or land underneath the “flying” part.
FREEHOLD
Absolute title on a property.
FREEHOLDER
See Lessor.
FULL TITLE GUARANTEE
The seller of a property must state the guarantee they are prepared to give. This is the usual guarantee given by a property owner.
G
GROUND RENT
This is paid by a lessee to a lessor where a property is leasehold and is usually expressed as a yearly sum.
H
HIGH LOAN TO VALUE FEE
This is sometimes charged by a mortgagee where a borrower borrows more than a certain percentage of the value of a property to insure the mortgagee only against loss arising if the property is sold by them due to the borrower’s failure to pay the mortgage.
I
IDENTIFICATION
From 1st March 2004 to comply with the Money Laundering Regulations and anti-terrorist legislation, unless you are an existing client prior to this date, then in any transaction involving large sums of money, such as conveyancing, we will be obliged to ask for identification. Usually your passport and a recent utility bill will have to be produced to us when returning quotation letters.
INDEX MAP SEARCH
A search at the land registry to see if a property is registered or unregistered.
INDEMNITY CONTRIBUTION
Indemnity insurance is taken out by all solicitors to cover losses to clients arising from errors or fraud in dealing with their matters.
INDEMNITY INSURANCE
Insurance to cover a defect in title or missing/lack of building/planning documents.
J
JOINT TENANTS
A form of ownership of a property where on the death of one of the co-owners, the surviving co-owner(s) is (are) entitled to the whole ownership of the property.
L
LAND CERTIFICATE
An official certificate issued by the land registry where a property is registered detailing the ownership and interest in the property where there is no legal charge.
LAND CHARGES SEARCH
A search at the land charges registry to see if a person has any bankruptcy proceedings pending or if the property is unregistered to see if there are any mortgages or interest registered against the property.
LAND REGISTRY
A central body that retains records of who owns the land, and under what conditions.
LAND REGISTRY FEE
The fee payable to the Land Registry to register any change affecting the property including a change of ownership.
LAND REGISTRY SEARCH
A search at the land registry to check that no undisclosed charges or interests are registered against the property.
LANDLORD
See Lessor
LEASE
Where a property is leasehold this is the document giving the lessee the rights to possession of the property for the lease term and setting out all rights and obligations.
LEASEHOLD
Where the ownership of property is for a limited period only. For example 99 years or sometimes 2000 years. Possession of the property will be subject to the payment of an annual ground rent.
LEASEHOLDER
See Lessee
LEGAL CHARGE
See Mortgage
LEGAL TRANSFER
This is the document which actually transfers the legal title to the property from one person to another and is signed shortly before completion.
LENDER
See Mortgagee
LESSEE
Where a property is leasehold the lessee means the current owner of the leasehold property as opposed to the freeholder or landlord whose interest is subject to the lessees right of occupation until the lease term has come to an end.
LESSOR
This means the landlord or freeholder who owns the freehold title and is entitled to the ground rent under the lease and possession of the property at the end of the lease term.
LIMITED TITLE GUARANTEE
This is the title guarantee given by a seller where because of their limited knowledge of the property the full title guarantee cannot be given (e.g. a personal representative of a deceased owner or a mortgagee in possession).
LOCAL AUTHORITY SEARCH
This represents a list of questions about the property which are sent to the local authority. It covers item such as, whether the road serving the property should be maintained by the council, whether there have been any planning applications on the property, and a number of other things.
M
MINING SEARCH
A search to check whether the property may be affected by coal mining activity which may result in subsidence.
MORTGAGE
A loan to buy a house or flat where the mortgagee lends the mortgagor money in return for a legal charge being registered against the property to ensure that the loan must be repaid before the property can be sold.
MORTGAGE DEED
The document signed by the mortgagor to create a legal charge which the mortgagee can register at the land registry.
MORTGAGE OFFER
The details of the terms upon which the mortgagee is prepared to make the mortgage loan.
MORTGAGE TERM
The length of time agreed for the repayment of the loan.
MORTGAGED
Where a property has been charged by the owner or mortgagor to the mortgagee.
MORTGAGEE
Somebody who gives someone a mortgage (e.g. a bank or building society)
MORTGAGOR
Somebody who takes out a mortgage (a borrower).
N
NEGATIVE EQUITY
A situation where the amount of money you owe on the Mortgage on the property is more than the sale price.
O
OCCUPIER’S CONSENT
Any person who lives at the property but will not be signing the mortgage deed will be asked to consent to the mortgage being taken out and agree to move out if the mortgagee takes possession due to the default of the mortgage
OFFICE COPIES
These are official copies of the Land Registers sent to the Buyer’s solicitors to prove the Seller’s title to the property.
P
PARTY WALL
A wall owned jointly with a neighbour and repairable at shared expense.
PLANNING PERMISSION
Approval by the local authority to the building or change of use of a property or extension to an existing property.
POLITICALLY EXPOSED PERSONS
A PEP is a person who has been entrusted within the last year by: a state other than the UK a community institution, or an international body and who fulfils one of the following public roles:
heads of state, heads of government, ministers and deputy or assistant ministers Members of Parliament members of supreme courts, or constitutional courts or of other high-level judicial bodies whose decisions are not generally subject to further appeal, except in exceptional circumstances members of courts of auditors or of the boards of central banks ambassadors, chargés d’affairs and high ranking officers in the armed forces members of the administrative, management or supervisory bodies of state-owned enterprises. PEPs will also include this person’s family members and known close associates.
POWER OF ATTORNEY
The document to be signed by somebody to appoint somebody else to act as their attorney.
PRIVATE ROAD
A road maintained by property owners rather than by the local authority. The property owners need to have rights over it as it is not necessarily a public access.
PROPERTY INFORMATION FORM
This is a questionnaire about the property completed by the sellers. It covers such items as guarantees, neighbour disputes and boundaries.
PURCHASE
The buying of a property.
PURCHASER
See buyer
R
REDEMPTION
The repayment of an existing mortgage.
REDEMPTION PENALTY
A penalty charged by a mortgagee when you redeem a mortgage within a fixed rate, discounted rate or cashback period.
REGISTERED LAND
Property which has already been registered at the Land Registry.
RENTCHARGE
Some freehold properties are subject to a rentcharge payable to the rentcharge owner. This may be to ensure income for the original land owner without the existence of a lease or it can be to ensure that estate covenants can be enforced more easily.
RESERVATION FEE
An administration fee charged by some mortgagees to cover the cost of reserving a mortgagor’s entitlement to a loan on certain terms or possibly a fee paid to a builder to reserve a particular new property.
S
SALE
The sale of a property.
SELLER
Someone who sells a property.
SERVICE CHARGE
A payment required by a lessor or managing agent to cover the costs of maintaining and running a development (e.g. gardening and decorating and also insuring a block of flats).
SMOKE CONTROL ORDER
An order made by the local authority designating an area to be one in which only smokeless fuels may be burnt (i.e. not coal or wood).
STAMP DUTY
Stamp duty land tax paid to the government on the purchase of a property over a certain value.
STANDARD CONDITIONS OF SALE
A form of general conditions created by the Law Society which form the basis on which conveyancing transactions are governed.
SUBSIDENCE
Where a property moves due to inadequate foundations or severe change to the underlying ground resulting in an instability in the structure of a building often evidenced by cracks in walls.
SURVEY
This is a report carried out on the physical state of the property.
T
TENANT
See Lesse
TENANTS IN COMMON
A form of co-ownership where on the death of the co-owners the remaining owner(s) is (are) not automoatically entitled to the deceased’s share in the property. The deceased’s share will pass in accordance with their wishes contained within their Last Will and Testament.
TERM ASSURANCE
Life insurance which only last for the term of the mortgage.
THIRD PARTY RIGHTS
The right of someone other than the legal owner of the property to use or control land of which they have no ownership. Details will be referred to in the title documents and explained by the solicitors acting on your behalf.
TIN SEARCH
A search to establish whether the property may be affected by tin mining activity which may result in subsidence.
TITLE
The owner’s right to a property.
TITLE DEEDS
These documents firstly act as evidence that the person selling the property actually owns it, and secondly set out any rights or obligations that affect the property.
TITLE INFORMATION DOCUMENT
Document issued by the Land Registry on completion of an application for registration confirming the ownership of the property and any mortgage.
TRANSACTION
A dealing with property (e.g. sale or purchase)
TRANSFER
A document which transfers ownership of a property from one person to another.
TRANSFER OF EQUITY
A document transferring ownership of a share or interest in a property from one person to another.
TREE PRESERVATION ORDER
An order made by the local authority designating a tree or group of trees as protected and requiring the local authority’s permission to lop or fell them.
U
UNREGISTERED TITLE
Where the title to a property has not previously been registered at the Land Registry and ownership is proved by the production of a complete chain of documents showing successive ownership.
V
VACANT POSSESSION
Possession of a property free of the presence of any people, possession or rubbish.
VALUATION
A very simple form of survey designed to establish the market value of the property.
VENDOR
See Seller
W
WAYLEAVE AGREEMENT
A formal agreement entered into with a property owner to give a service provided (e.g. Electricity or Telephone company) a right for their pipe or cable to pass through or over the property.
