Glossary of Conveyancing Terms

Whether you’re buying or selling a property, you will need an experienced Residential Property Solicitor to handle the transaction for you. Throughout the process you may come across some unfamiliar words and phrases.

Conveyancing terminology is confusing, which is why we’ve put together an A-Z glossary of residential conveyancing terms.

Glossary of Conveyancing Terms

Mortgage Advance – The original amount of the loan from a Bank or Building Society.

Attorney – A person appointed to act on behalf of another person and sign documents on their behalf.

Base rate – The interest rate set by the Bank of England which most other interested rates are based.

Chain – Sequence of linked sales and purchases where each transaction is dependent upon another. For further information please read our Ultimate Guide to Property Chains.

Completion – Final stage of the transaction when the Seller receives the money and the Buyer receives the keys.

Contract – Agreement between the buyer and seller to sell the property on an agreed date and price. Normally, the parties sign identical copies of the contract and the solicitors formally exchange the copies at this point the agreement becomes legally binding, meaning the parties have ‘exchange of contracts.

Conveyancing – Refers to the legal process used to buy and sell land and property. The legal work will be undertaken by a ‘conveyancer’.

Covenant – A legal promise or obligation, which can restrict the owner of the property from doing something for example, using the property for business purpose. Alternatively, it can oblige the owner of the property to do something for example, maintain a particular boundary.

Deeds – Legal document which establishes ownership and confirm the Owner’s title to the property for properties not registered with HM Land Registry.

Declaration of Trust – A Deed signed by co-owners of a property setting out each owner’s individual rights and share owned in the property.

Deposit – An agreed amount to be paid by the Buyer to the Seller when contracts are exchanged. This money forms part of the purchase price. Standard contract terms state the deposit is 10% of the full purchase price, but in practice, a lesser amount is often negotiated. The deposit forms part of the purchase price.

Disbursements – Fees paid by the conveyancer to third parties the buyer’s behalf. For example, searches, Stamp Duty and Land Registry fees.

Energy Performance Certificate (EPC) – Measures the energy efficiency of a property on a scale of A-G. It provides a Buyer with detailed information about a property such as energy use and performance, CO2 emissions and typical fuel bills.

Equity – Equity in a property is the amount that you own. If there is a mortgage on the property, house equity is the difference between the value of your property and the amount that you still owe on the mortgage, along with any outstanding secured loans.

Exchange of Contracts –The point in a transaction where all parties are legally bound to proceed with the sale. Exchange is normally effected by a telephone conversation between the parties conveyancers.

Freehold – Type of property ownership, where a person owns the property absolutely without any limitation on the period of ownership.

Fitting and Contents Form – A standard form, which is completed by a Seller from the outset of a sale to inform the buyers what is and isn’t included in the sale.

Ground Rent – Rent paid by the Leaseholder of a building to the owner of the superior title from which the Lease is granted.

Land Registry – HM Land Registry is a non-ministerial department that registers the ownership of land and property in England and Wales.

Leasehold – Type of property ownership, where a person purchases a lease from the freeholder or head lessor for a right to live in the property for a number of years. Normally ground rent is paid to the freeholder.

Lender – A Bank, Building Society of other person or company who lends money to an Owner.

Mortgage – A loan from a Bank, Building Society or lender to support Buyers with a property purchase.  The loan is secured against the property so if it is not repaid as agreed, the lender can repossess the property.

Stamp Duty Land Tax (SDLT) – A tax which is payable on houses, flats and other land and buildings over a certain price in the UK.

Sold STC – When a property is sold subject to contract it means an offer has been accepted on a property, but it is not yet legally binding.

Survey – An assessment carried out by a building surveyor, who will check that the building is structurally sound.

Title Deeds – Legal documentation providing ownership of the property and land.

Transaction – Dealing with a property for example a sale, purchase or remortgage.

Valuation – An assessment of a property’s value based on the location, condition and multiple other factors.

Vendor – The Seller of a property.

Residential Property Solicitors Leeds & Yorkshire

Morrish Solicitors is a long-established law firm based in West Yorkshire. We have a specialist team of Residential Property Solicitors who have a wealth of knowledge and experience dealing with both simple and complex property transactions including freehold, leasehold, registered and unregistered property.

Our residential property services include:

We offer all our residential property services at your convenience either in-person, over the phone or by email or post. So, it doesn’t matter where you live, we’re always here to support you. Our team aim to make your property transaction as hassle-free as possible.

If you’d like to speak to a member of our property team, please contact us on 033 3344 6909 or email [email protected] with your request.

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