Glossary of Conveyancing Terms

 

A brief explanation of some legal and other Conveyancing Terms used in residential property transactions, which are sometimes confusing for clients due to their terminology.

Chain

A position in which Seller 1 sells to Buyer 1 and Buyer 1 sells to Buyer 2, etc, thus creating a chain of connected transactions.

 

Completion

Completion of the transaction when the Seller receives the money and the Buyer receives the keys.

 

Contract

The written legal agreement that is prepared in duplicate for respective signature by the Seller and the Buyer. It sets out all the legal rights and obligations agreed upon between them.

 

Conveyancing

The legal process of buying and selling land and property.

 

Covenants

Legal promises or obligations.

 

Deed of Gift

A document or deed used to transfer ownership of property from one person to another without any payment being made.

 

Deeds

Documents which establish ownership and confirm the Owner’s title to the property.

 

Deposit

An agreed amount to be paid by the Buyer to the Seller on exchange of contracts as security for the Buyer’s performance of the Contract (usually 10% of the purchase price).

 

Equity

When talking of property and mortgages, this usually means the difference between the value of a property and the amount owed on mortgage(s).

 

Exchange of Contracts

The formal exchange of the two identical copies of the Contract when the Seller and Buyer become legally bound to complete the transaction on an agreed date.

 

Freeholder

The person who owns the freehold.

 

Ground Rent

This is the rent paid by a Tenant to a Landlord where a property is leasehold.

 

Land Registry

An organisation controlled by Central Government, which maintains a register of properties and their ownership in England and Wales. It now covers approximately 90% of residential dwellings.

 

Landlord / Lessor

Usually (but not necessarily), the Freeholder and the person entitled to receive the ground rent from the Lessee or Tenant.

 

Leasehold

Where the ownership of property is for a limited period only, e.g. 99 years or 999 years. It will normally involve payment of an annual ground rent and also a service charge in the case of flats, apartments, residential developments etc.

 

Party Wall

A wall owned jointly with a neighbour and repairable at joint (and normally equal) expense.

 

Power of Attorney

A document by which someone appoints another person to act as their attorney.  This can be used when the donor loses capacity (provided it is registered at the Public Guardianship Office.

 

Registered Land

Property which has been registered at the Land Registry.

 

Service Charge

A payment required by a Landlord (or managing agent) to cover the costs of insuring and/or maintaining a development or block of which the property forms part.

 

Stamp Duty Land Tax

A government tax payable on completion of the purchase of a property (where applicable).

 

Transfer of Equity

A document transferring ownership of a part share or interest in a property from one person to another.

 

Vacant Possession

A Seller required to give vacant possession must (on completion) leave the property (including the garden and outhouses) empty of people, possessions and rubbish.

 

Do you have more questions about Conveyancing Terms?

 

If you have any questions about Conveyancing Terms or any other aspect of buying or selling a property, Contact Us or call our Conveyancing Team at the Cleveleys Office Tel: 01253 824216