Are you in the process of getting your home ready for sale? Have you already seen some property industry jargon and been confused by it? At Evolution Properties we have that covered, no more searching Google endlessly to find out what each word means, just bookmark this tab and if you have any questions, call the team on 01233 501601.
Adopted Highway: An adopted highway is a highway that was privately-owned road, but has become a public road which is now maintained/managed by the local highway authority.
Assent: The name of the document used to transfer the legal ownership of property/land from someone who has deceased, to the new owner.
Assured Shorthold Tenancy: Also known as an AST, means that a landlord can let out their property and retain the property after the tenancy ends.
Breach of Contract: Is where a client (whether that is the buyer or seller) does not fulfil the obligations covered by the contract.
Base Rate: The interest rate that the Bank of England charge the banks for the mortgages. When taking out a mortgage, you will pay the base rate plus an interest rate from the lender.
Building Regulation Approval: An application to confirm the details of a construction and the structural aspects of a development are compliant with the standards of construction.
Chain: A position in which there are multiple buyers and sellers creating a chain of connected property/land transactions.
Common Registration Searches: A search to ensure the property is not registered as common land where the local community will have access as well as yourself. If it is common land, it can not be used by vehicles.
Completion: The day whereby once this happens, you are the legal owner of the property and keys are handed over.
Conservation Area: An area which is considered of environmental or historical importance and therefore protected by law to prevent any changes which are not desired.
Contract: The document that shows the seller and buying agreeing the terms of the sale, including all the terms.
Covenant: Within the deeds to the land, you might have a covenant. These will contain things you cannot do and things you will need to, i.e maintain a specific boundary.
Deed Of Covenant: A document which is legally binding where the homeowner agrees to the terms and the responsibility of that within the covenant.
Deed Of Gift: A deed used to transfer ownership of a property from without charging them any money.
Deposit: Upon the exchange of contracts, the deposit which was agreed at the start of the sales process will be transferred from buyer to seller.
Disbursements: The expenses that will be paid on your behalf from your solicitor i.e search fees.
Drainage Search: A check carried out by your solicitor to obtain information regarding the connections of the sewer as well as the water supply.
Easement: This gives one land owner the right to use another persons land in order to benefit theirs. For example, a right of way.
Environmental Search: Carried out with an environmental agency, which outlines how the land has been used previously and will highlight if there is a chance of any possible contamination.
EPC: An energy performance certificate is to show how energy efficient a property is as well as showing where it would be with improvements.
Equity: If you have a mortgage, the equity in your home is the difference between how much you still owe on your mortgage and the value of your property.
Exchange of Contracts: This is where the contracts are exchanged and signed, therefore bound to the completion of the sale. If from here you pull out, you may have your deposit taken still.
Flying Freehold: Will arise if part of one property overhangs or lies beneath another property/land on a freehold tenure.
Fixture, fittings and contents form: Also referred to as a TA10 form will stipulate what contents, fixtures and fittings are included in the property sale.
Freehold: Full ownership of the land/property. This ownership will be forever.
Gazumping: Is when a seller accepts a higher offer even though a sale is already in progress. This then stops the sale in process and sets you back to square one.
Ground Rent: Paid from the leasehold to the freeholder under the terms of the lease.
Index Map Search: A search done to check whether a piece of land is registered. This is checked through the land registry's mapping records.
Indemnity Insurance: "A protection policy sometimes purchased during housing transactions... Covering the cost implications of a third party making a claim against any defects with the property you are about to buy." Source: HOA, 2022.
Land Registry: The HM land registry will register the ownership of any land and property that is in England and Wales. They will give owners a land title as well as the title plan including the boundaries.
Land Transaction Tax: To be paid to the Welsh Revenue Authority and is the tax on the land purchase.
Lease: Is a document whereby someone will occupy the property in return for rental payments.
Leasehold Information Form: Also known as a TA7 will go in hand with a TA6 form whereby the seller will answer questions on the leasehold property.
Listed Building: A property which is signified as of architectural or historical importance. These types of buildings can mean you might be restricted to certain works on the home.
Management Company: A company who are in charge of managing and maintaining the communal parts of a building. There is usually a service charge to pay for this.
Mortgage: A loan in order to pay for a property.
Off Plan: When purchasing a new build, that has not been built and is purchased based on the plans.
Planning Permission: Official permission obtained by a local authority before either extending or building something new.
Private Road: A road which is privately owned and not part of Highways England or maintained by local authorities.
Property Information Form: A form completed by the sellers that will outline all details of the property.
Searches: A solicitor will carry out enquiries on your behalf that will gain more information on the property that is not on the title. An example of this is if there is a flood risk.
Service Charge: Payments that are made to the management company to maintain and manage the communal areas.
Stamp Duty Land Tax: (SDLT) is the tax you will pay on your property/land purchase. The amount will be dependent on the type of buyer and the amount of the property price.
Subsidence: When the ground beneath the property will start to collapse or sink lower than the land around it and pulling the structure of the property with it. This can create cracks.
Title: The legal term for the ownership of a property.
Transfer Of Equity: When the owner of a property adds or removes someone to the title on the property.
Tenure: The conditions under which someone will own the land/property. For example freehold and leasehold.
If you would like some advice for your home before it comes to the market, head over to our valuation page and book for your free property appraisal.