Linskill Solicitors
6 Castle Street, Liverpool, L2 0NB
Main Switchboard: 0151-236-2224
Emergency Crime Line: 07836 711755
Conveyancing Jargon Buster
If you need help understanding often confusing property jargon below is a list of terms you may encounter during the sale, purchase or re-mortgage of your property:
Completion Date
Completion Date – The moving date. The day you move out or move in.
Contract
This is the agreement between the buyer and the seller.
Deposit
The amount of money put down by a buyer on exchange of contracts (usually 5% or 10% of the purchase price) as evidence of his good faith to proceed. This can be forfeited by the seller in certain circumstances if the buyer fails to complete.
Exchange Contracts
This is the moment that the contract becomes binding on both seller and buyer when both parties are bound to continue. Any withdrawal from the transaction after exchange is likely to impose a great expense on the party who withdraws.
Fixtures, Fittings and Contents Form
This is
Freehold
Ownership of both the property and the land it stands on.
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Indemnity Contribution
Indemnity insurance is taken out by Solicitors to cover losses to clients arising from errors or fraud in dealing with their clients cases.
Linskills Solicitors is required by the Law Society to pay for this insurance in respect of every transaction, and some solicitors recover the premium from their clients.
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Land Registry
This is the body that retains the records of who owns land, and under what conditions.
This was set up to simplify the conveyancing process. Not all land in England and Wales is registered today due to the fact that land can only be registered following certain "triggering events". The Land Registry has their own website which provides useful information.
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Local Authority Search
This is a search with the local authority to establish their views on such issues as roads, drains, planning and general development in the area.
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Mortgage
This is a loan to help you buy a house, flat, or other property. Sometimes called a charge.
Mortgage Deed
The legal charge of the property to the mortgage lender until such time as the loan is repaid.
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Mortgage Fees
These fees are charged for acting on behalf of your bank or building society.
Sellers Property Information Form
Sellers Property and Information Form (S.P.I.F.F.S) – A questionnaire which indicates what items the seller at the property is taking and leaving, and sometimes what items he wishes to sell.
There is also a questionnaire to be completed by a seller to give details of matters which affect the property, e.g., boundary ownership, disputes, guarantees, occupiers and planning.
Redemption
The final payment of a mortgage loan.
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Redemption Fee
Penalty sometimes incurred if paying off a mortgage early.
Stamp Duty
This is simply a tax charged by the government, and only affects you if you are buy property for more than £125,000. It is paid by the buyer.
If you buy for exactly £125,000 you pay nothing in stamp duty; if you pay from £125,001 to £250,000 stamp duty is charged at 1% on the whole of the purchase price. From £250,001 to £500,000 it is charged at 3%, and above £500,000 it is charged at 4%.
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Survey
This is a report carried out by a surveyor on the physical state of the property you are buying.
If you are buying a property you should be aware that the property is "sold as seen". It is for you, as the buyer, to discover any physical defects by means of inspections and surveys.
Most houses are bought with the assistance of a mortgage and the bank or building society, will require a mortgage valuation. However, this is not a survey - it merely ensures that they property is of sufficient value to protect the lender's interest. Our advice is that you should at least have an RICS Homebuyer's Report prepared by a qualified surveyor. This will cost more than a mortgage valuation but it is advisable. It is possible to go one step further and have a full structural survey (initially you should not chose this option unless the surveyor who carries out the Homebuyer's Report thinks any matter should be investigated further).
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Title Deeds
These documents firstly act as evidence that the person selling the property actually owns it, and secondly set out any rights or obligations that affect the property.
If you are selling, then valuable time can be saved if your title deeds can be obtained by us at an early stage. If you have a mortgage then your bank or building society will be holding your title deeds. We will need to know your mortgage account number and the name and address of the lender. Some lenders charge a fee to send out your deeds but this will normally be added to your mortgage account.
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Transfer Deed
This is the document that passes the ownership of the property from the seller to the buyer.
It is dated with the completion date, and will be sent to the Land Registry after completion. The Land Registry need this deed to change their records, and show the buyer as the new owner of the property.
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Water Drainage Search
This provides information of whether the property is connected to a public or private water supply - if it is billed for the water and waste water and whether the property is connected to a public sewer or septic tank or other private disposal facilities.
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Our Property Team are waiting to hear from you so contact us today for further information.
Telphone Linskills Conveyancing Department on: 0151 243 0136.
Email: n.cummins@linskills.co.uk
