Conveyancing Jargon Buster

Abstract of title

A summary of documents showing ownership of property.

Additional Enquiries

Specific enquiries, sent to the Seller’s Solicitor, based on the paperwork contained in the pre-Contract package.

Agent

A person appointed by another (the principal) to act on his behalf.

Arrangement fee

This is the charge imposed by a mortgage lender for setting up your home loan.

Arrears

If you go into arrears it means that you have ‘defaulted’ at least once on your mortgage repayments, i.e. missed a month’s payment.

Articles of Association

Regulations for the management of registered companies.

Assets

Items of value.

Assignment

A disposal or transfer of property.

Bailiff

Officer of the County Court empowered to serve Court documents and execute warrants

Bankrupt

Insolvent – unable to pay creditors and having all goods/effects administered by a liquidator or trustee and sold for the benefit of those creditors; as a result of an order under the Insolvency Act 1986

Bankruptcy Search

A search on behalf of the lending institution to ensure you are not bankrupt.

Beneficial Interest

The entitlement to have or share in the proceeds of a property. This may or may not coincide with the legal title.

Beneficiary

Person (or persons) who benefits from a will

Buy-to-let

A buy-to-let property is purchased with the sole intention of renting it out to a tenant as an investment.

Common Law

The law established, by precedent, from judicial decisions and established within a community

Creditor

A person to whom money is owed by a debtor

Capital

A fund representing the nominal value of shares issued by a registered company.

Capped rate

On a capped-rate mortgage deal, the interest rate charged by your lender will never exceed an upper limit, regardless of wider interest rates.

Cashback

When your lender gives you a certain amount of cash on completion.

Chancel repair liability

Where a property is located within the boundaries of a tithe district (a sub-division of an historical parish) and has a continuing potential to be charged for chancel repairs.

Charge

See Mortgage

Charge Certificate

See Land Certificate

Charging Order

An order directing that a charge be registered at the Land Registry on property owned by the debtor.

Chattels

Personal belongings, eg jewellery, furniture, wine, pictures, books, even cars and horses not used for business. Does not include money or investments.

Codicil

Document altering an existing will.

Completion Date

The moving date. The day you move out or move in.

Compulsory Purchase

A forced sale to a Government Department or Statutory Authority, on payment of an agreed level of compensation.

Condition

A major term of the contract.

Constructive Notice

Knowledge that the law presumes a person to have even if he is actually ignorant of the facts.

Contingent

Where an event must happen before another event can occur.

Contract

The formal document which when signed and exchanged binds the seller and buyer to each other to complete the transfer of the property. It normally includes details of the price, the parties, description of the property and any other terms.

Conveyance

The document or act of transferring ownership of land.

Co-Ownership

If more than one person buys a property then there has to be an agreement as to the percentage of ownership and what happens when either party dies unless the survivor of the co-owners is to take the property, the agreement is called a Declaration of Trust.

Covenants

Legal promises to do or not do something.

Damages

The compensation you may be entitled to receive for a tort or breach of contract.

Debenture

A document which states the terms of a loan, usually to a company.

Debtor

Person owing money to another party

Declaration

Court order setting out the rights of a party in the form of a statement

Declaration of Trust

See co-ownership

Deed

A legal document which sets out the terms of an agreement, which is signed by both parties

Default Judgment

Obtained by the claimant as a result of the failure of a defendant to comply with the requirements of a claim

Defaulting

where you go into arrears on your mortgage.

Demise

Grant of a lease.

Deposit

When dealing with mortgages this is the amount required to be paid towards the cost of the property yourself.

Devi

Person to whom freehold land is given by a will

Devise

Gift of house or land.

Disbursement
A Fee which is paid to a third party.

Disclaim

The refusal or renunciation of a right, a claim or of a property.

Disclosure

A method of protecting buyers of a company that relies on the company disclosing information which is then evaluated by the buyer.

Discontinuance

Notice given by the Court, on instruction by the claimant that they no longer wish to proceed with a case

Discounted-rate mortgage

Where the interest rate you are charged is a set amount less than your mortgage lender’s standard variable rate (SVR).

Distress

The seizure of goods as security for the performance of an obligation.

Early repayment charges

What you may need to pay if you want to leave your mortgage deal at any time within a specified period.

Easements

Rights that one property enjoys over another e.g. rights of way.

Encumbrance

A right or interest in property owned by someone other than the property owner.

Enduring power of attorney

A form that authorises someone to act on another’s behalf.

Energy Performance Certificate (EPC)

Part of the Home Information Pack, it rates your home from A to G on how efficiently it uses energy.

Enforcement

Method of pursuing a civil action after judgment has been made in favour of a party. Process carried out by Magistrates Court to collect fines and other monetary orders made in the Crown Court

Entry of Judgment

Decision of the Court in favour of one or other of the parties

Equity

The equity in your property is the amount of money you have left after taking away the amount outstanding on your mortgage from the value of your property.

Equity release scheme

A scheme which releases the Equity in your property allowing you to spend it.

Estate

All the assets and property of the deceased, including houses, cars, investments, money and personal belongings.

Exchange of Contracts

Contracts must formally change hands in order to make them legally binding. That is, each solicitor hands a copy of the signed contract to the other party.

Executor

Name given to a personal representative if he or she is appointed by a valid will or codicil.

Exempt

To be freed from liability or allegiance

Executor-dative

Administrator appointed by the court for a person who dies intestate.

Fee

Monies payable on issue of a claim or subsequent process

Fixed Charge

A charge attached to a specific item of property.

Fixed-rate mortgage

A mortgage which has a fixed interest rate for a specified period of time.

Fixtures and Fittings Form

A questionnaire which indicates what items the seller at the property is taking and leaving, and sometimes what items he wishes to sell.

Flexible mortgage

A mortgage deal which allows you to overpay, underpay or even take a ‘payment holiday’ from your mortgage.

Floating charge

A charge on the fluctuating assets of a company e.g. stock

Force Majeure

Events beyond the control of contracting parties. Often described as ‘Acts of God’.

Forfeiture

The loss of Property or a right which has arisen because of a breach of a covenant or undertaking.

Freehold

A type of land ownership which, in effect, runs forever.

Goodwill

The advantage arising from reputation and trade connections of a business.

Grievance
A letter addressed to an employer outlining those matters and issues which are being complained of.

Guarantor

A guarantor is a third party who agrees to meet your obligations in the event that you default.

Grant of probate

Document issued by the probate registry to the executors of a will to authorise them to administer the estate.

Guarantee

A secondary agreement under which a person is liable for the debt of another.

Home Condition Report (HCR)

An optional addition to the Home Information Pack, it offers an objective report on the condition of your home.

Homebuy schemes

Government schemes designed to help existing tenants and key workers (doctors, nurses etc) to get onto the property ladder.

Home Information Pack (HIP)
A collection of important information required by law before you are allowed to market your home. For more details see the Home Information Pack page.

Implied Term

A provision of a contract not agreed to by the parties in words but regarded by the courts as necessary to give effect to their presumed intentions.

Index Map Search

A search to establish if the title to the property is registered at the Land Registry.

Inheritance tax (IHT)

Tax that may be payable when the total estate of the deceased person exceeds a set threshold (subject to various exemptions and adjustments).

Insolvency

see Bankrupt

Inspection of Documents

Following disclosure of each parties documents by discovery, the arrangements made by the parties to allow mutual exchange and copying of documents

Insured Losses

Losses that are covered by an insurance policy.

Intestate

Person who dies without making a will.

Issue

To initiate legal proceedings in pursuit of a claim

Joint Tenancy

(see Co-ownership) Where, on the death of a co-owner, the entire property will pass to the survivor(s)

Judge

An officer appointed to administer the law and who has authority to hear and try cases in a Court of law

Judgment

Final decision of a Court A monetary judgment requires the payment of a sum of money by one party to another

Jurisdiction

The area and matters over which a Court has legal authority

Just and Equitable Winding Up

A compulsory winding up by the court on grounds of fairness.

Land Certificate

The Certificate supplied by the Land Registry proving ownership of a property registered at the Land Registry. If your property is subject to a charge or mortgage, a Charge Certificate is issued instead, which will be kept by your lender. See also Registered Land .

Land Registry

The Central and District government registries where details of all registered titles are kept.

Land Registry Fee

A fee payable to the Government for registering you as the owner of the property at the Land Registry, and also for registering any other transactions related to Registered Land.

Land Registry Search

A search to establish that there are no additional entries on the Register of Title since the date of issue of an official copy.

Landlord and Tenant Act 1954

Act which empowers applications (seeking extension of a lease or some other action concerning tenancy

Leasehold Property

Property that is occupied under the terms of a lease.

Legacy

Gift of money or object.

Legal Aid

Facility for the fees and expenses of counsel, solicitors or other legal representatives retained by those of modest means to be paid from a fund administered by the Legal Aid Board

Legal Expense Cover

This may form part of your insurance cover or it may be a separate policy. It covers losses that are not covered by your standard insurance policy, such as personal injury.

Legal Personal Representative

The person to whom a grant of probate or letters of ADMINISTRATION has been issued

Legatee

Person to whom personal estate is given by will

Licence

Permission to carry out an act that would otherwise be considered illegal

Lien

A legal right to withhold the goods/property of another until payment is made

Life interest

Gift that gives someone the right to income from an asset or the right to occupation of a property for the duration of their life after which the asset or property passes to someone else mentioned in the gift (known as the remainderman).

Lifetime mortgages

Equity release schemes.

Loan Agreement

See Mortgage Offer

Local Search

A search with the Local Authority to establish their views on such issues as roads, drains, planning and general development in the local area.

Mortgage

A loan to help you buy a house, flat, or other property. Sometimes called a charge.

Mortgage deed

The mortgage deed is the formal contract between lender and borrower, outlining the legal obligations of the borrower, and the rights the lender has should the borrower fail to make a repayment (see Defaulting).

Mortgage Offer

The formal document making an offer of a loan under a mortgage, which will say how much the loan is for, the period and the amount of repayment, and all of the terms and conditions attached to the loan.

Mortgage term

This is the amount of time you are taking the mortgage out for, for example 25 years.

Mortgagee

The party that advances the loan

Mortgagor

A borrow

Named person

Person who is named in the will. When reading a will, beneficiaries are referred to as ‘named persons’

Notary Public

Someone who is authorised to swear oaths and certify the execution of deeds

Oath

A verbal promise by a person with religious beliefs to tell the truth

Office Copy entries

(Sometimes shortened to office copies) The official copy of a Land or Charge Certificate obtained from the Land Registry.

Official Receiver

A civil servant who works for the Department of trade and Industry and is appointed by the Court to act as:-

i) a liquidator when a company is being wound up;

ii) a trustee when an individual is made bankrupt. The duties of an official receiver will include examining the company/bankrupt’s property which is available to pay the debts and distributing the money amongst the creditors

Offset mortgage

An offset mortgage is linked with your savings and sometimes your current account. The credit in these accounts is offset against your mortgage debt to reduce the amount you pay interest on.

Option

The right to compel the owner to sell to the option holder on agreed terms.

Order

A direction by a Court

Ordinary Resolution

A decision reached by a simple majority (i.e. more than 50%) of a company’s members.

Originating Application

A method of commencing proceedings under the authority of a specific act of parliament

Ouster

An order within an injunction to force a person to leave a property

Overriding interest

An interest of a third party in registered land which binds the owner even though there is no note of it on the Register held at the Land Registry

Partnership

An association of two or more people formed for the purpose of carrying in a business.

Personal estate or personalty

All the investments and belongings of a person apart from land and buildings.

Personal representative

General term for both administrators and executors.

Personal Service

Personal delivery (ie not by mail) of a claim, summons or notice

Portability

A portable mortgage will enable you to transfer borrowing from one property to another.

Possession Proceedings

Legal proceedings by a landlord to recover land/property ie house, flat, garage etc

Power of Attorney

A legal document in which one person gives another person power to carry out actions on their behalf.

Precendent

Pre-emption

Prior rights

Rights to the house, its furnishings and a cash sum. Except in the case of larger estates, where intestacy is rare, prior rights often mean that the surviving spouse inherits the entire estate.

Privity of Contract

The relationship that exists between parties to a contract.

Probate of the will

Document issued to executors by a probate registry in England, Wales and Northern Ireland to authorise them to administer the estate.

Probate registry

Government office that deals with probate matters. The Principal Probate Registry is in London with district registries in cities and some large towns.

Prohibited steps

This is a court order that specifies prohibited actions of the parents, such as moving out of the country or changing the child’s surname.

Property Information Form

A questionnaire to be completed by a seller to give details of matters which affect the property, eg, boundary ownership, disputes, guarantees, occupiers and planning.

Proxy

A person appointed by a company member to attend and vote instead of him, at company meetings.

Quantum

The amount of damages determined by the court

Real estate or realty

Land and buildings owned by a person.

Receiver

Person appointed by the Court of Protection to act on behalf of a patient

Recission

The setting aside of a voidable contract which is thereby treated as though it never existed.

Recognisance

An undertaking before the Court by whereby a person agrees to comply with a certain condition

Redemption Statement

Details of monies owed to your financial institution which will need to be repaid on completion of a sale or re-mortgage.

Registered Land

A title which is centrally filed at the Land Registry on which all details are kept of matters which affect the property including easements, charges, restrictive covenants and who owns the property. The Land Certificate or Charge Certificate are copies of information held by the Land Registry.

Remortgaging

Changing your mortgage to a different deal but not moving.

Restrictive Covenant

Restrictions imposed on a property effectively being things you are not allowed to do, eg, not alter the appearance of the property or build in the garden.

Secured Creditor

Someone who holds security e.g. a mortgage, for money he has lent.

Searches
We will ask for Searches from the Local Authority, the Water Authority and a number of other organisations so that we can find out what needs to be known about a property.

Shared ownership

An agreement, usually with a local housing association, which sees the borrower take out a mortgage on a share of the property and pay rent on the remainder.

Solvent

Value of the assets exceeds any debts and liabilities.

Specific Performance

A court order making a person fulfill his obligations under a contract

Specified Claim

A type of claim which is issued for a fixed amount of money allegedly owing. Previously known as a liquidated claim

Stamp Duty Land Tax (SDLT)

A tax payable to the Government on the completion of the purchase of a property or land. The amount of duty depends on its purchase price, although there are some disadvantaged areas where no Stamp Duty Land Tax is payable at all.

Standard variable rate

The default mortgage interest rate your lender will charge.

Sublease

A lease granted by someone who himself is a lessee.

Sub-prime

A sub-prime mortgage is geared towards those with a less than perfect credit history. This could be bankruptcy or county court judgements (CCJs), or you could have fallen into arrears in the past.

Summary Judgment

Judgment obtained by a plaintiff where there is no defence to the case or the defence contains no valid grounds

Surety

A person’s undertaking to be liable for another’s default.

Survey

A report carried out by a surveyor on the physical state of the property.

Tenancy at Will

A tenancy that can be terminated by either the Landlord or Tenant at any time.

Tenancy in Common

Where on the death of the Co-Owner his/her share of the property passes by will or intestacy, see Co-Ownership.

Testator

Person who makes a will.

Tie-in period

This is the period during which you are ‘locked in’ to your mortgage deal and will pay an early repayment charge to move your mortgage elsewhere.

Title Deeds

The documents which prove you own the property.

Transfer Deed

The document which formally transfers title on registration at the Land Registry from the seller to buyer.

Transfer of Equity

A sale or gift of one person’s interest in the property to another, most commonly on divorce or separation where the family home is jointly owned property.

Trial Window

A period of time within which the case must be listed for trial

Trustee

Person responsible for administering a trust.

Trustee in Bankruptcy

A person in whom the property of a bankrupt is vested for the benefit of the bankrupt’s creditors.

Uberrimae Fidei

Latin for ‘of the utmost good faith’

Underlease

Otherwise known as a Sub-Lease

Uninsured Losses

Losses that are not covered by your insurance policy, such as personal injury, excess, loss of earnings etc.

Unregistered Land

A title which is yet to be registered and for which there are a number of documents not yet sorted into a Land Registry file for which a Certificate of Title would be issued.

Unregistered Company

A company incorporated otherwise than under the Companies Acts.

Unspecified Claim

A claim where the amount to be awarded is determined by the Court.

User

The use or enjoyment of land

Valuation

a survey where lenders carry out a valuation to verify that the property is worth the amount you want to borrow.

Void Contract

A contract which has no legal force from the moment it is made.

Voidable

Capable of being set aside.

Waiver

The act of abandoning or refraining from asserting a legal right.

Walking Possession

A signed agreement by a debtor not to remove goods levied by a bailiff under the authority of a warrant of execution and to allow the bailiff access at any time to inspect the goods, in consideration of which the bailiff leaves the goods in the possession of the debtor

Warranty

A term or promise in a contract, breach of which will entitle the innocent party to damages but not to treat the contract as discharged by the breach,

Will

The document in which you say what is to happen to your possessions on your death.

Winding up

The voluntary or compulsory closure of a company and the subsequent realisation of assets and payment to creditors

Without Prejudice

A phrase which entitles negotiation without implying any admission of guilt.

Witness

A person who gives evidence in Court

Yearly Tenancy

A periodic tenancy which lasts 1 year.

Zero-Rated Supply

A supply within the scope of VAT but charged at a nil rate.