Conveyancing Glossary

Read our extensive conveyancing glossary designed to help both first time buyers & experienced movers alike.

Conveyancing Glossary

Advance notice

Is a notice between two or more parties for a 35-day period that protects a deed intended to be registered in the Land Register in Scotland.

Agreement 

Often used as a word for contract.

Assent 

The formal document required to transfer ownership of a property to a person entitled following the death of the owner.

Basic fee 

The fee charged by the solicitor for their time and skills. This is most often calculated as a percentage of the property’s sale price, although it can also be calculated as a fixed-fee or on a per-hour basis.

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.

Brine search

Carried out to establish if a property is affected by disused workings in close proximity.

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.

Client care letter 

Solicitors will send a client care letter for you to sign and return. This is a formal contract and should be read thoroughly. It will detail what services will be provided and a breakdown of the cost, in addition to the solicitor’s complaints procedure.

Coal mining search

If the property is situated in a coal mining area this search will be conducted by the property lawyer to find out if coal mining activities will affect the property in the future.

Commons registration search 

A search carried out by the local authorities to ensure a property is not registered as common land or connected to a village green, resulting in third party rights over the property.

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 

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.

Council for Licensed Conveyancers (CLC) 

The governing body that licenses and regulates conveyancers. You should always ensure your conveyancer is a full member. See Law Society.

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.

DIY conveyancing 

Most people appoint a solicitor or conveyancer when buying or selling a property but some choose to undertake the process themselves. This can be very risky in some cases, such as when dealing with leasehold properties.

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.

Encumbrance 

An issue with your property that reduces its value or makes it less marketable.
 

Equity 

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

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 

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.

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.
Indemnity

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.

Home Report 

You need a home report before you can market your property in Scotland. The pack includes three documents: a Single Survey, an Energy Report and a Property Questionnaire. 

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 Buildings and Transaction Tax (LBBT) 

A tax applied to property transactions and replaced Stamp Duty Land Tax (SDLT) in Scotland in April 2015. 

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.

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 property information form 

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

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.

Missives 

The exchange of letters between solicitors when buying or selling a house in Scotland.

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.

Priority searches 

See pre-completion searches.

Property Information Form 

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.

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.

Reparations 

The compensation or remuneration required in the event of a breach of contract.

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.

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.

Solicitor’s Regulation Authority (SRA) 

The independent regulating body of the Law Society of England and Wales, the SRA can be called upon to deal with disputes if you have received an unsatisfactory service from your solicitor.

Stamp Duty 

All buyers pay stamp duty based on the purchase price of the property in question. The money accrues to HMRC. Please see our complete guide to stamp duty for further information.

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.

Last reviewed July 2016.

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