legal info | Garnett Wilson conveyncing | Southend | licensed property lawyers based in central Southend

Garnett Wilson Conveyancing Services LLP

To help you understand some of our legal terminology, to help you understand things we may say.

Frequently Asked Qestions

A / B / C / D / E / F / G / H / I / J / K / L / M / N / O / P / Q / R / S / T / U / V / W / X / Y / Z

A

Abstract title

A list of all documents that prove title to land

Assign

To transfer the right or interest in a property from one person to another

Assignee

The person to whom the right or interest of property is transferred

Assignor

The person who transfers a right or interest of property to another person

B

Banker’s draft

A cheque drawn directly from a bank’s funds, and not from an individual’s account

Beneficial owner

The person or people who are entitled to receive the proceeds of a sale

Breach of contract

Where one of the parties bound by a contract fails to keep to the contract’s terms and conditions

Building Regulations approval

Consent required from the local authority for certain works undertaken at a property

C

Certificate or report on title

A standard form used by solicitors to request the mortgage or loan funds from the lender

Charge

A loan that is secured against land or property

Client account

A solicitor’s bank account where a client’s money is held

Completion date

The date that a contract takes effect and property ownership passes from seller to buyer

Completion statement

A list of all the financial aspects of a transaction. Produced by a solicitor, it sets the costs against the money being received and shows whether money needs to be paid to the client or whether a shortfall needs to be made up before completion

Contract

A written and signed agreement between seller and buyer

Conveyancing

The term used to describe the legal process of transferring a property from one owner to the next

Contract race

When a seller deals with more than one prospective buyer and exchanges contracts with whichever is ready first

Conveyancer

A person qualified to undertake conveyancing. Either a solicitor, licensed conveyancer or Legal Executives

Covenant

An agreement contained within a contract or a deed that binds somebody to do something or not to something

D

Deed

formal document that is executed by a formally witnessed signature

Deposit

The amount of money paid by the buyer on exchange of contracts, typically 10% of the purchase price

Disbursements

Fees paid by the buyers solicitor on his or her behalf, which include stamp duty, land registry and search fees

E

Easement

A right granted over a property or land e.g. a right of way

Energy Performance Certificate (EPC)

This is a new type of survey that assesses the energy efficiency of a property along with the environmental impact based on its CO2 emissions

Environmental report

A report on the land uses of a property and its surroundings now and in the past. This will indicate the likelihood of contamination or pollution

Exchange of contracts

The point at which the signed contracts to buy and sell are exchanged along with your deposit, to legally commit the buyer and seller to the transaction, at the price and terms agreed

F

Fixtures and fittings

Fixtures are items that have become part of a building or land and are therefore included in the sale. Fittings are not attached to the building or land and so are not included in the sale unless otherwise agreed. The seller will complete a fixtures and fittings form that will confirm what is included in the sale, what isn’t included, and what is for sale separately

Freehold

When a property belongs entirely to the owner (subject to any mortgage or lease granted)

G

Ground rent

Is the charge paid to the Landlord, usually on an annual basis, and fixed by the Lease terms

I

Indemnity insurance

Insurance against any aspect of a property transaction such as an adverse search result or breach of planning/building regulations. This will not solve any problems but it will provide compensation

J

Joint tenants

Where a property is purchased under joint tenancy. Normally used for husband and wife purchases because if one of the owners dies then his/her share will automatically pass to the survivor. Also see tenants in common

L

Land Registry

The Government department responsible for registering ownership of land

Lease

For a leasehold property, this document sets out the terms of occupation between landlord and tenant

Leasehold

Owning a property for a fixed term but not the land on which it stands

Local Authority Search

Application made to the Local Authority for information that may affect a property. The search results will show entries such as planning restrictions and whether the roads have been adopted and are maintained by the Council

M

Maintenance charge

An amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of the building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as service charge

Management company

Company formed to manage obligations of a lease such as insurance and repairs

Managing agents

Firm employed by a landlord or management company to arrange practical maintenance and general management of a building

Mortgage

Loan secured against a property

Mortgagee

The mortgage lender e.g. a bank or building society

Mortgagor

Mortgage borrower

N

NHBC

National House Builder Council. The NHBC provide a ten year insurance policy on the main structure of new properties

O

Official copies

Certified copies of entries on a register title, provided by the Land Registry

P

Planning permission

Official consent/approval from a Local Authority for works undertaken on a property

Property Information Form (PIF)

Also known as a Protocol Form the PIF is provided by the seller's solicitor and is completed by the seller. It forms part of the conveyancing process and covers such matters as boundaries, services, guarantees for work carried out and planning consents.

Purchaser

Buyer

R

Redemption

When a mortgage is paid off

Retention

Where a mortgage lender retains part of a loan, pending satisfactory completion of specified works

Restrictive covenants

See FAQ

S

Subject to contract

Negotiations between a buyer and seller before exchange of contracts. Any agreement is not binding until contracts are exchanged

Stamp Duty Land Tax (SDLT)

Tax payable to HM Revenue & Customs when a purchase price is more than £125,000 or more than £250,000 for first time buyers

Service charge

Amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of a building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as maintenance charge

T

Telegraphic transfer

The electronic transfer of funds from one bank account to another

Tenant

A person who pays rent for the use of property or land

Tenants in common

Tenants in common are treated as having a separate, distinctive share which will not automatically pass to the other person upon death but will instead go to his or her next of kin or to whoever it has been left to if there is a will. In these cases, it is usual to have a form Deed between the parties to set out their wishes

Tenure

The type of ownership, either freehold or leasehold

Transfer deed

Land Registry deed transferring ownership to a buyer. This will be prepared by the buyer’s solicitor

U

Underlease

A further lease of whole or part of a property granted by an existing tenant

V

Vendor

Seller