USEFUL TERMS IN THE HOUSE BUYING PROCESS
Completion Date - When ownership of the property passes from the seller to the buyer. The balance of the purchase price is paid on that date. The solicitor will then make arrangements for the selected date. There can be delays caused by unforseen events and it is the role of the conveyancing solicitors to keep parties informed. It is advisable not to make any arrangemants removals/holiday-wise until you have had the date confirmed by the solicitors.
Contract - The agreement relating to the sale of the property, the sale price, and the names of the respective parties involved.The contract is drawn up by the seller's conveyancing solicitor with a copy being prepared for the buyer.When both parties are satisfied and matters are legally sound each pary signes their copy of the contract and the contracts are then "exchanged".
Deposit - A percentage of the purchase price [often 10%]paid at the time contracts are exchanged. If through no fault of the seller, the sale fails to complete, then the buyer will forfeit the 10% deposit and may, in some cases be liable to pay the seller compensation.
Disbursement - These are usual expenses incured when purchasing a property for various searches paid by your solicitors, on your behalf.
Exchange Contracts - The deal is now binding for BOTH parties. Up to this time either party can withdraw without penalty.
Fixtures, Fittings and Contents Form - [normally accompanied by the "Property Information " Form] You will need to complete this list of the items at the property [e.g curtains, carpets, light fittings]. This ensures that the buyer knows exactly what he/she is buying. Keep a copy of this list; it's completed at an early stage so there is plenty of time for you to forget before the actual move!
Freehold - Property - Relates to the ownership of both the property and the land it stands on.
Land Registry - The central referrence that shows who owns the land, and under what conditions.
Leasehold - Property - Unlike Freehold, a Leasehold property is one where the property is owned but the land it stands upon is not.
Legal Fee - This covers the work carried out by your conveyancing solicitors and any fees which fall due to other parties [land registry etc].
Local Authority Search - Questions about the property are put to the Local Authority. Typically the relate to maintenance of roads, public rights of way etc within the property, any planning permissions, any roadworks plans on proposals which may affect the property.
Mortgage - A loan to enable the purchase of the house. In some cases your solicitor can advise on suitable mortgage providers.
Mortgage Fees - These fees are normally charged for acting on behalf of your bank or building society.
Property Information Form - [normally provided at the same time as the "Fixtures, Fittings and Contents" form] A questionnaire about the property completed by the sellers, covering items such as, disputes with neighbours and boundary issues. Failure to disclose relevant information could lead to future litigation.
Redemption On Sale - The final payment to the mortgage provider to discharge any borrowing against the property.
Redemption Fee - A fee charged when paying off a mortgage early.
Right to Buy - AThis enables Council tenants the right to buy their property from the local authority, usually at a discounted price, providing criteria is met.
Stamp Duty - This is an HM Government tax paid by the buyer as a percentage of the property sale price. The scale of duty can be obtained from your conveyancing solicitor.
Survey - Mortgage lenders will insist upon a property survey being undertaken prior to purchase. There a two main types, the Home Buyer's, or the full structural survey, both carried out on behalf of the buyer by a qualified surveyor.
Transfer Deed - Transfers the ownership of the property from the seller to the buyer. Dated the day of completion it is sent to the Land Registry, where the records are updated with the new ownership details.
