Here we provide a straightforward guide to all the most common terms and words you will come across when selling a property.
Building survey (formerly full structural survey) - A full inspection of the property, conducted by a chartered surveyor, who then writes a detailed report including any property defects. Suitable for any house, particularly older properties and those, which have been poorly maintained. Also for properties which have been extensively altered or extended, or any property you may wish to alter or extend.
Chain - The situation that occurs when your buyer is reliant upon completion of the sale of his existing property in order to complete on the purchase and/or when you are buying a property and that purchase is reliant on your sale.
Completion – The point at which all transactions concerning the property’s sale are concluded and legal transfer of ownership passes to the buyer.
Conditions of sale - The details which determine the rights and duties of the buyer and seller. These may be national, statutory, or the Law Society’s conditions.
Contract - A legal agreement between the seller and buyer of a property which binds both parties to complete the transaction.
Contract race - When two parties have made an offer on the same house. The vendor will sell to the first party to exchange contracts, ie: it's a race!.
Conveyancer - A qualified individual such as a solicitor or licensed conveyancer who deals with the legal aspects of buying or selling a property.
Conveyancing – Traditional term for the legal work involved in the purchase and sale of a property.
Covenants - Rules and regulations governing the property, contained in its title deeds or lease.
Deeds - Legal title documents proving ownership. The deeds will be held by the mortgage lender.
Deposit – A sum of money (usually 10%) paid by the buyer on exchange of contracts.
Detached - Term used to describe a property that stands alone and is separated from all others.
Discharge – Paying off a mortgage.
Down Valuation - When the lender turns down your mortgage application after the surveyor’s valuation report indicates the property is not worth the sum sought.
Draft Contract - Preliminary, unconfirmed version of the contract.
Early redemption charge (ERC) - A charge made by the lender if the borrower terminates a mortgage in advance of the terms of the particular mortgage. Normally occurs when the borrower has benefited from reduced payments or cash back in the early period of a mortgage.
Equity - The difference between the value of a property and the amount of mortgage owed.
Exchange of contracts - The point at which signed contracts are physically exchanged, legally committing the buyer and seller to the purchase and sale of a property at the agreed price.
Fixtures & fittings - All non-structural items included in the purchase of a property.
Freehold - Technical word for the ownership of the property, meaning that it belongs to the owner without limitation of time.
Gazumping - This is when a seller accepts a higher offer from a third party on a property that they have agreed to sell to someone else, but have not yet exchanged contracts.
Gazundering - When a buyer offers the seller a lower offer just before contracts are about to be exchanged.
Homebuyer's survey and valuation (house/flat buyer's report) - This is a survey report, which is not as detailed as a structural survey, carried out by a chartered surveyor to assess the state of a property and its value.
Loan to value (LTV) - The size of the mortgage as a percentage of the property’s value.
Local authority search - Procedure whereby a buyer's solicitor makes an enquiry to the local council regarding any outstanding enforcement or future development issues which might affect the property or immediate area.
Negative equity - When the value of the property falls to less than the outstanding mortgage.
Offer - A sum of money that the buyer offers to pay for a property.
Ombudsman - Independent professional bodies who investigate complaints on behalf of customers against, for example, estate agents, solicitors and insurance companies.
Open market value - The price a property would achieve when there is a willing buyer and willing seller.
Preliminary enquiries - The initial enquiries about a property put forward to a seller which the seller must answer before the exchange of contracts.
Purchaser - A person who is buying a property.
Redemption - When a mortgage is fully repaid.
Repossession - When the mortgage lender takes possession of your property due to non-payment of the mortgage.
Retention - Holding back part of a mortgage loan until repairs or specified works to the property are satisfactorily completed.
Search - A request or enquiry for information concerning the property held by a local authority or by the land registry.
Semi-detached - A property which is joined to one other house.
Sole agent - When a seller chooses only one estate agent to sell their home.
Solicitor - Legal expert handling all documentation for the sale or purchase of a property.
Stamp duty - A tax paid by purchasers of properties with a value in excess of £120,000, of between 1% and 4% depending on value.
Subject to Contract - Words to indicate that an agreement is not yet legally binding.
Surveyor - Professionally-qualified expert who carries out the survey.
Tenure - Conditions on which a property is held (ie: length of lease).
Terraced house - A property which forms part of a connected row of houses.
Title deeds - Documents showing the legal ownership of a property.
Transfer deeds - The land registry document that transfers legal ownership from seller to buyer.
Under offer - The status of a property for sale, when a seller has accepted an offer from a purchaser but prior to exchange of contracts.
Valuation - A basic survey of a property to estimate its value for mortgage purposes. Mortgage lenders will insist on this before lending.
Variable base Rate - The basic rate of interest charged on a mortgage. This may change in reaction to market conditions, so your monthly payments can go up or down.
Vendor - The legal name for a person selling a property.