When you’re buying a property, conveyancing can feel like a minefield of legal terms and processes. Here’s a simplified guide to help you understand key terms, This guide covers the essential terms you’ll encounter during the conveyancing process, helping you navigate the legal side of buying a home with confidence.
- Bankruptcy Search (K16)
A check made to ensure no one involved in the transaction is going through bankruptcy, which could affect the sale. - Chain
When multiple property transactions are linked, each dependent on the others. A chain-free purchase is generally simpler. - Bank Transfer
On the completion day, the buyer’s solicitor transfers the remaining money for the property to the seller’s solicitor. - Chain Break
If a transaction in the chain fails, it disrupts all other linked transactions. - Contract
The legally binding document that outlines the terms of the sale, including property details and price. - Covenants
Legal obligations attached to the property that the owner must follow, like maintaining shared fences. - Completion Date
The day when the buyer officially takes possession of the property, and the seller moves out. - Conveyancing
The entire legal process of transferring property ownership from seller to buyer. - Deed of Covenant
An agreement a buyer might need to sign if there is a management company responsible for communal areas, ensuring obligations under the lease or property transfer are met. - Disbursements
Costs your solicitor pays on your behalf for services like searches and Land Registry fees. - EPC (Energy Performance Certificate)
A document that shows how energy-efficient the property is and suggests ways to improve it. - Exchange of Contracts
When both parties sign and swap contracts, making the sale legally binding. Insurance and mortgage arrangements should be in place by this point. - Mortgage Offer
The formal agreement from your lender, confirming how much they will loan you. - Freehold Property
A property that you own outright, including the land it’s built on. - Land Registry Search (OS1/OS2)
A final check to ensure no changes have been made to the property title before the sale is completed. - Lease
A legal agreement where the property owner (landlord) allows someone to use the property for a set period in exchange for rent. - Leasehold Property
You own the property for a set number of years, but not the land it stands on. When the lease ends, ownership returns to the freeholder. - Legal Charge
Another term for a mortgage, which secures the loan against the property. - LPE1 – Leasehold Property Enquiries
A document providing key information about the lease, service charges, and other management-related details. - Retention
Money held back by the buyer’s solicitor until the seller fixes certain issues with the property. - Searches
Checks made to identify any issues with the property, such as local planning applications or drainage problems. - Local Searches
These reveal whether there are any issues with the property, such as planning restrictions or road proposals nearby. - Drainage Search
Shows where the property connects to the public drainage system, indicating responsibilities for the drainage up to the mains connection. - Environmental Search
Identifies potential environmental risks like flooding, contamination, or nearby landfill sites that could affect the property’s value. - Mining Search
Required if the property is in a mining area to check for subsidence or other mining-related issues. - Land Transaction Tax (LTT)
A tax paid when buying property in Wales. - Surveys
A detailed inspection of the property’s condition to identify structural issues. - Stamp Duty Land Tax (SDLT)
A tax paid when buying property in England. - Title Report
A summary of all the legal documents related to the property, confirming ownership and any restrictions. - TA Forms
Documents filled out by the seller providing important information about the property, like what fixtures are included in the sale. - Completion on Notice
Common in new builds, where completion is delayed until the property is ready, with notice given a few days before.