[et_pb_section][et_pb_row][et_pb_column type="4_4"][et_pb_text]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.
  1. Bankruptcy Search (K16) A check made to ensure no one involved in the transaction is going through bankruptcy, which could affect the sale.
  2. Chain When multiple property transactions are linked, each dependent on the others. A chain-free purchase is generally simpler.
  3. Bank Transfer On the completion day, the buyer’s solicitor transfers the remaining money for the property to the seller’s solicitor.
  4. Chain Break If a transaction in the chain fails, it disrupts all other linked transactions.
  5. Contract The legally binding document that outlines the terms of the sale, including property details and price.
  6. Covenants Legal obligations attached to the property that the owner must follow, like maintaining shared fences.
  7. Completion Date The day when the buyer officially takes possession of the property, and the seller moves out.
  8. Conveyancing The entire legal process of transferring property ownership from seller to buyer.
  9. 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.
  10. Disbursements Costs your solicitor pays on your behalf for services like searches and Land Registry fees.
  11. EPC (Energy Performance Certificate) A document that shows how energy-efficient the property is and suggests ways to improve it.
  12. 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.
  13. Mortgage Offer The formal agreement from your lender, confirming how much they will loan you.
  14. Freehold Property A property that you own outright, including the land it’s built on.
  15. Land Registry Search (OS1/OS2) A final check to ensure no changes have been made to the property title before the sale is completed.
  16. Lease A legal agreement where the property owner (landlord) allows someone to use the property for a set period in exchange for rent.
  17. 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.
  18. Legal Charge Another term for a mortgage, which secures the loan against the property.
  19. LPE1 – Leasehold Property Enquiries A document providing key information about the lease, service charges, and other management-related details.
  20. Retention Money held back by the buyer’s solicitor until the seller fixes certain issues with the property.
  21. Searches Checks made to identify any issues with the property, such as local planning applications or drainage problems.
  22. Local Searches These reveal whether there are any issues with the property, such as planning restrictions or road proposals nearby.
  23. Drainage Search Shows where the property connects to the public drainage system, indicating responsibilities for the drainage up to the mains connection.
  24. Environmental Search Identifies potential environmental risks like flooding, contamination, or nearby landfill sites that could affect the property's value.
  25. Mining Search Required if the property is in a mining area to check for subsidence or other mining-related issues.
  26. Land Transaction Tax (LTT) A tax paid when buying property in Wales.
  27. Surveys A detailed inspection of the property’s condition to identify structural issues.
  28. Stamp Duty Land Tax (SDLT) A tax paid when buying property in England.
  29. Title Report A summary of all the legal documents related to the property, confirming ownership and any restrictions.
  30. TA Forms Documents filled out by the seller providing important information about the property, like what fixtures are included in the sale.
  31. Completion on Notice Common in new builds, where completion is delayed until the property is ready, with notice given a few days before.
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