Conveancing – Jargon

Chain

A situation in which buyer and seller depend on each other to complete simultaneously.

Completion Date

Date on which all transactions concerning the sale of a property are concluded.

Completion Statement

A statement prepared by the buyer's solicitor detailing exactly how much the buyer should pay, including the sale price, deposit, and other costs.

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

Legal and binding agreement containing all the essential details of the sale. The contract commits both buyer and seller to the transaction.

Conveyance

A legal document that officially transfers the rights to land or property.

Conveyancer

Handles all matters arising from the sale or purchase of property. Usually a solicitor but may also be a licensed conveyancer.

Conveyancing

The transfer from one person to another of the legal ownership of property or land.

Deeds

Legal title documents providing ownership. The deeds will be held by the mortgage lender and are only released on full repayment of the loan.

Detail Sheet

Document giving interested parties details.

Disbursements

Fees paid by the solicitor on the buyer's behalf, such as stamp duty, land registry and search fees.

Draft Contract

Preliminary, unconfirmed version of the contract.

Easement

A right given to the owner of one property over an adjoining property, such as a right of way.

Exchange of Contracts

The signing of contracts by vendor and buyer. At this point both parties are committed to the transaction.

FSA

Financial Services Authority. An independent non-governmental body concerned with consumer protection in the financial market.

Freehold

Ownership of the land on which the property is built.

Gazumping

When the vendor accepts a higher offer from another buyer after a sale has been agreed.

Gazundering

When a buyer lowers his offer after a sale has been agreed.

Land Registry

The official body responsible for recording the ownership of land.

Land Registry Fees

Fees paid by a solicitor on the buyer's behalf to register ownership of property with the Land Registry.

Leasehold

The ownership of property for a fixed period in return for a rental payment and subject to terms and conditions.

Scale Fee

A fee based on the price being paid or the amount being borrowed, rather than the amount of legal work being done.

Searches

The method of checking with the local council for any planning applications or other matters that might affect the status of the property.

Stamp Duty

A government tax payable by every purchaser of either a house, flat and other land and buildings over £120,000. Duty is charged at one per cent for homes priced between £120,001 and £250,000. The rate is three per cent for homes over £250,001 but not more than £500,000. For homes over £500,001 the rate is four per cent. (Since 30 November 2001, the purchase of property costing up to £150,000 in certain local areas has been exempt from stamp duty. View a list of wards in England eligible for exemption from stamp duty. Source: Inland Revenue, Crown Copyright 2001)

Stamp Duty Land Tax Return Form

Since 1st December 2003 Stamp Duty has been replaced by the Stamp Duty Land Tax, although the above rates remain the same. It is now compulsory for every purchaser to file a Stamp Duty Land Tax Return Form with the Inland Revenue, duly completed and signed within 30 days.

Structural Survey

A survey, usually of older properties, giving details about the property's structure.

Subject to Contract

A provisional agreement between buyer and seller that is not yet legally binding.

Transfer Document

The final document transferring the property from the seller to the buyer.

Valuation Survey

A survey done to allow a property value to be determined for mortgage purposes. This may not reflect the market value of the property.