Common words and phrases you will come across during the Conveyancing Process in England and Wales.

Completion date

This is the final date of the whole process when the ownership of a property passes from one person to another

Contract

This is the official legally binding document between buyer and seller setting out terms of the sale such as price, property address, names of buyers and sellers etc.

Deposit

This is a payment given by the buyer to secure the purchase of the property. It can be up to 10% of the purchase price and once contracts have been exchanged will not be refundable.

Disbursements

These are payments made on clients behalf by the Solicitor to cover costs such as Stamp Duty, Local Searches etc.

Energy Performance Certificates

These are part of the Home information Pack and detail the energy rating of a property. A graph is produced to show how efficient (or not) a property is so you can compare against other properties.

Exchange of Contracts

A very important part of the whole process. After contracts have officially been exchanged between Solicitors, the sales process must be carried out (Completed). The sale is now legally binding on both sides.

Fixtures, Fittings & Contents

As the name suggests, this is a list of all items to be included in the sale. This information is provided by the seller on a special form and will detail things like carpets, curtains and appliances to be left at the property for the new owner.

Freehold

This normally relates to the ownership of the land on which the property stands. Freehold ownership means absolute ownership for an indefinite period of time. (also see Leasehold).

Home Information Pack (HIP)

The Home Information Pack contains important information that buyers and sellers need to know. Home Information Packs including Energy Performance Certificates will be implemented on a phased basis from 1 August 2007. From then Packs will be required for the sale of four bedroom properties and larger, with smaller properties being phased in as soon as sufficient energy assessors are fully qualified.

Land Registry

This is the government department responsible for keeping and maintaining the records of the Land Register of England and Wales. This ensures that accurate information is held on who owns which property.

Leasehold

Relating to the ownership of the land on which a property stands, a leasehold property is effectively standing on rented ground which is returned to the freeholder when the lease expires. This is quite common and normally acceptable where there is a long lease remaining, but would require further investigation if the lease is short.

Local Authority Search

A request to the local authority for information about local roads, planning applications and matters that may effect the property and area.

Mortgage

A loan to help you pay for the property. Normally from a Lender such as a high street bank or specialist mortgage company. A Mortgage adviser can help you through the process of finding a mortgage which is right for you.

Mortgage Deed

Until the mortgage loan is repaid, the lender will require some sort of security in case of any default by the borrower. A mortgage deed shows that the lender has legal charge or right over the property and will allow them to re-possess a property if the terms of the borrowing are not adhered to.

Property Information Form

This is basically a detailed questionnaire about the property asking about guarantees, boundaries, neighbors and any disputes. It is completed by the seller and passed to the buyer via the Solicitors.

Redemption

This relates to the outstanding mortgage loan on a property and the final payment. When the loan is finally paid off it is said to be redeemed.

Stamp Duty

This is a tax paid by the buyer and is based on the purchase price of the property. It is paid to the Inland Revenue. Your Solicitor should be able to advise you of current tax bands and any area exemptions available.

Survey

This is a report into the physical state of the property on behalf of the buyer. Properties are "Sold as Seen" and it is up to the buyer to discover any physical defects through a survey.

Title Deeds

Legal documents proving that the person selling the property owns it and has the right to sell.

Transfer Deeds

A legal document that shows the ownership of the property has changed from one party to another. After completion this is forwarded to the Land Registry for them to update the records.

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