Purchasing or selling a property can be very confusing at times especially with all the property related jargon that you may come across. Below we have gathered an A-Z of common property jargon we estate agents use on a daily basis. Should you require any advice on purchasing or even selling a property then please do not hesitate to get in contact with us on 01454 316718.
The person or party applying for a property to buy or let.
The assessed value of a property as estimated by a valuer or surveyor.
An auction is a process of selling a property to the highest bidder.
Buy to Let
This is where a property has been purchased with sole purpose of letting to a tenant.
Buildings insurance will cover or replace any damage that might occur to the property.
The amount of money either put into buying a property or the deposit placed on a property. Also known as equity.
The situation that occurs when a buyer is reliant upon completion of the sale of their existing property in order to complete the purchase of the new property.
The estate agents fees for selling a property
The completion date is the day on which money is transferred from the buyer’s to the seller’s solicitor. It is the date that the buyer becomes the legal owner of the new property.
Contents insurances will cover the cost of repair or replacement of items such as Electrical goods, carpets, furniture or curtains.
A qualified individual such as a solicitor or licensed conveyancer who deals with the legal aspects of buying or selling a property.
Legal title documents demonstrating ownership of the property.
Money paid by the buyer on exchange of contracts during the conveyancing.
A situation in which prices are falling (the opposite situation to inflation).
A recently refurbished and modernised property or a newly built residence.
A detached house is a ‘free-standing’ residential house which does not share any walls with another property.
Energy Performance Certificate (EPC)
An EPC is a graph which measures the energy efficiency and environmental impact of a property using the scale of A-G. This is a legal requirement commissioned before a property can be marketed.
The amount of money either put into buying a property or the deposit placed on a property which exceeds the amount of any money borrowed against the property. Also known as capital.
Exchange of contracts
This point at which signed contracts are physically exchanged, legally binding the seller and buyer to the property at the agreed price.
Fixtures and fittings
All non-structural items included in the purchase of a property.
In some circumstances, because of the layout of a property, it may ‘overhang’ another freehold property. If this is the case then the property is deemed to have a ‘flying freehold’.
Whether the owner of the property also owns the land on which it is built.
When a seller accepts a higher offer from a third party on a property that they have already agreed to sell to someone else prior to exchange of contracts.
When a buyer reduces their agreed offer prior to exchange of contracts.
The annual charge levied by the freeholder to the leaseholder of a property.
Home Buyer Surveyor (Report)
More in-depth report than a valuation that looks at the condition of the property.
The general rise in prices over time.
The process of registering the legal title of an area of land with the land registry, typically handled by a solicitor.
A legal document outlining details of how the freehold or leasehold owner of a property let the premises for a specific length of time, after which the ownership may revert to the freeholder or the superior leaseholder.
Denotes that ownership of a property and/or buildings is by way of a lease agreement.
A self-contained apartment (usually on two floors) in a larger house with its own entrance from the outside
When a seller chooses to use more than one agent to sell their property.
A sum of money that the buyer offers to pay for a property.
SMS is an abbreviation for Short Message Service. Commonly known as text messages.
A property which is joined to one other property.
Share of freehold
Where the freehold on which the property stands is owned by a limited company and the shareholders of that limited company are the owners of the property.
When a seller chooses only one agent to sell their property.
A property that is occupied only by the mortgage applicant(s) and their direct family.
A legal expert handling all legal documentation for the sale or purchase of a property.
A government tax paid by the buyer of a property. These values range from 0% and 5% depending on the value of the property. This currently only applies to properties in excess of £125,000.
A detailed inspection of the property which reports on the general structural condition.
Subject to contract
The vendor has accepted an offer from a potential purchaser but legal documents have not yet been completed. Technically the property is still available until exchange of contracts.
A professional person qualified to estimate the value and condition of land and property.
Conditions on which a property is held (i.e. the length of lease).
A property that forms part of a connected row of houses.
The Property Ombudsman (TPO)
The Property Ombudsman (TPO) is a free, fair and independent arbitration service which provides sellers, buyers, landlords and tenants with an assurance that they will receive the highest level of customer service.
Documents showing the legal ownership of a property.
The Land Registry document that transfers legal ownership from seller to buyer.
The status of a property for sale when a seller has accepted an offer from a buyer, prior to exchange of contracts.
A basic survey to find out the estimated value of a property.
The person selling a property.
Income from a property calculated as a percentage of its value.