Conveyancing Jargon Buster

Buying a home is one of the most exciting, and let's be honest, one of the most stressful things you'll ever do.

The conveyancing process comes with a whole host of unfamiliar terms that can quickly leave you feeling lost, and at Clapham & Collinge, we know that not knowing what's going on only adds to that stress.

That's why we've put together this jargon buster, breaking down the key terms you're likely to encounter at each stage of your home-buying journey. Whether you're a first-time buyer or you've been through the process before, we hope this helps you feel a little more informed and a lot more confident.

Just remember, our friendly conveyancing team is always on hand if you have any questions along the way.

Getting started

Starting the conveyancing process can feel overwhelming, especially when you're faced with a raft of unfamiliar terms before you've even found your dream home.

Here's what you're likely to come across right at the beginning of your journey.

Bankruptcy search

A search carried out against a buyer's name to check whether they are currently bankrupt or subject to insolvency proceedings.

Caveat emptor

Literally means “Buyer Beware”. Refers to the general rule that sellers do not have to reveal defects which the buyer can discover from inspection of the property. It is the buyer and their Conveyancer who should investigate and establish this.

This principle does not protect a seller who has given misleading information or failed to answer enquiries truthfully.

Certified copy

Where an original document is copied, and a professional signs that copy to guarantee that it exactly matches the original. Often used where ID needs to be taken at the start of a property transaction to satisfy Money Laundering Checks.

Conveyancer

A legal professional who carries out the legal work involved in buying, selling or transferring property.

First-Time Buyer

Someone purchasing their first residential property and who has never previously owned a property interest in the UK or abroad.

Gifted Deposit

Money contributed towards a property purchase by someone else, usually a family member. Conveyancers and mortgage lenders will usually require evidence of the source of the funds and confirmation that the money is a genuine gift that does not need to be repaid.

Money laundering checks

Checks which Conveyancers are obliged to make to ensure that a transaction is not a money laundering scheme or involves ‘black’ money.

Mortgage Offer

Formal confirmation from a lender setting out the terms on which it is prepared to lend money for a property purchase.

Probate Property (and Grant of Probate)

A property being sold following the death of its owner. The sale is usually handled by the executors or administrators of the estate. In some cases, a Grant of Probate (or Letters of Administration) must be obtained before the sale can be completed.

A Grant of Probate is a legal document issued by the Probate Registry which confirms that an executor has authority to deal with a deceased person's estate, including selling property.

Source of funds

A form of Money Laundering Check which requires proof of where the money used in a transaction has come from.

Source of Wealth

A form of Money Laundering Check which requires proof of how wealth was generated.

Transfer of Equity

The process of adding, removing or changing ownership of a property without selling it to a third party.

Vendor

The seller of a property.

Investigating the property

Once your offer has been accepted, your conveyancer will begin digging into the details of the property itself.

This stage is all about making sure you know exactly what you're buying and that there are no nasty surprises waiting for you down the line. These are the terms you'll hear during this part of the process.

Drainage and water search

A pack of information requested from a local Water Company, which reveals information about sewers, drains and water supply which serve a property.

Enquiries

Questions asked about a property to clarify or find out further information. It can also take the form of a request to do or remedy an issue.

FENSA

A membership scheme for installers of replacement windows, doors and roof lights which sets a high standard in line with building regulations.

Local search

A search which obtains various bits of information from the Local Authority serving a property. Reveals past planning permissions, Tree Preservation Orders, public rights of way and a range of other issues.

Mining search

A search which reveals any past or present mining activity in the area around a property.

NHBC

A warranty and insurance scheme normally given for new build properties.

Property information form (TA6)

An industry standard form which contains questions which are filled out by a seller of a property. This is then provided to a buyer to give them basic information regarding the boiler, electrics, parking and previous building works etc. Usually used by a buyer’s Conveyancer to raise enquiries.

Searches

Broadly refers to a standard set of enquiries submitted to various authorities, which provide you with more information about the property you plan to purchase. A standard set would likely include enquiries sent to the Local Authority, Environmental, Drainage & Water, and other searches relevant to the property's location.

Survey

An inspection of a property, carried out by a Chartered Surveyor or other professional, to assess the condition and identify defects in a property. Normally commissioned independently by a buyer without involvement from a Conveyancer.

Valuation survey

A survey of a property commissioned by a mortgage company. The purpose of this is to ensure that the property value is high enough to cover the mortgage advance.

Property Ownership Terms

One of the most important parts of conveyancing is establishing exactly what you are, and aren't, buying.

Property ownership comes with rights, responsibilities and sometimes restrictions that aren't always obvious. This section explains the key terms around ownership and title.

Adopted

When a Local Authority (council) takes ownership and responsibility for maintenance of a road, drain or sewer. In general, if a road, drain or sewer is on private land and not adopted, the land owner will be responsible for its upkeep.

Boundary

The legal extent of a property's land. Boundaries may be marked by fences, hedges, walls or other features.

Chain

Refers to a line of buyers and sellers that are all linked as they are each selling and buying a property from one another. A chain typically starts with a first-time buyer or someone not needing to sell and ends with a seller who does not need to buy another property. A chain can only advance as quickly as the slowest link.

Chancel repair liability

An historic liability that can, in limited circumstances, require property owners to contribute towards repairs of a parish church. This liability is often covered by an Indemnity Policy to protect home owners.

Charge

A duty or obligation secured against a property so that in the event the duty or obligation is not fulfilled, a claim against the property can be made. Most common example is a mortgage charge.

Conservation area

An area of land which has been designated as being of environmental or historical importance and as such may not be developed or altered in certain ways.

Covenant

A legal promise to do, or not to do a certain act. These can stay with property, so that a new owner will be bound by an old owner’s Covenant.

Deeds

In conveyancing, this generally refers to a range of documents which together prove a person’s ownership of an Unregistered Land. Any modern transaction now results in old deeds being made electronic and stored on a register with the Land Registry.

Easement

A right which grants specific uses of another person’s land. For example, a right of way or right to lay cables.

Epitome of title

A specific bundle of Deeds which together prove a person’s ownership of a property and a history of that ownership.

Freehold

A form of tenure under which land can be owned. Freehold means that you own the property and land indefinitely, subject to laws, restrictions and any rights affecting the property.

Ground Rent

A payment that may be required under some leasehold properties, payable to the freeholder.

Indemnity policy

A type of insurance which covers any costs arising out of a defined risk occurring.

Land registry

A government department which records and oversees property in England and Wales.

Leasehold

A form of tenure under which land can be owned. Normally for a set term which is granted by virtue of a lease from a landlord. Ownership is restricted in the sense that the terms of any lease must be complied with.

Leaseholders may need to pay ground rent, service charges and comply with restrictions contained in the lease.

Mortgage Deed

A legal document signed by a borrower giving the lender security over the property.

Official copies

Documents from the Land Registry’s records relating to a specific property. Would include a Title Plan of the property, and a Title Register which shows details such as the current owner, any Covenants affecting the land and any Charges over the property.

Restrictive Covenant

A covenant that restricts the use of land, for example preventing business use, extensions or alterations without consent.

Right of Way

A legal right allowing somebody to pass over land owned by another person. (Also refer to Easement)

Service Charge

A payment made by leaseholders towards the maintenance and management of shared areas and services.

Tree preservation order

A written order made by a Local Authority which protects a particular tree from being damaged or removed.

Unregistered land

Land which has not previously been registered with the Land Registry. As the land is not registered, its ownership will be proven by a bundle of Deeds, and not Official Copies.

Buying with others

If you're purchasing a property with another person, there are some important decisions to make about how you'll own it together.

These terms might not come up in every transaction, but when they do, it's important to understand what they mean and the implications of each choice.

Declaration of solvency

A short statement by someone which states that they are not bankrupt and are not in financial difficulty. Often asked for when giving a gift, as this helps to stop a gift being ‘retracted’ by a court if someone is made bankrupt at a later date.

Declaration of trust

A legal document made between two or more people purchasing a house. May include terms setting out the shares of ownership, contributions to a mortgage or other responsibilities of the co-owners.

Joint tenants

A form of ownership by two or more persons of the same property. The individuals, who are called joint tenants, share equal ownership of the property and own the whole property together and, upon the death of one owner, their interest automatically passes to the surviving owner(s).

Tenants in common

When two or more persons purchase a property, this is where ownership is determined by defined shares. i.e. Purchaser 1 owns 75% and Purchaser 2 owns the other 25% of a property. A Declaration of Trust is often used in these circumstances. Each owner can leave their share to whoever they choose in their Will.

Exchange and completion

Exchange and completion are the moments you've been working towards, when the deal becomes legally binding, and the keys finally change hands.

There's quite a bit of paperwork involved, and you'll encounter a number of specific terms during this final stretch. Here's what they all mean.

Certificate of title

A document that is sent by a Conveyancer to a lender (Mortgage Company) which states that the property is a suitable purchase and asks for the mortgage advance to be sent. The lender needs to know that all matters relating to the property are acceptable as it will be their security for the mortgage loan.

Completion

Completion is when the purchase money is transferred, legal ownership passes to the buyer and the keys are usually released. This is the day the buyer can move in and the seller must vacate the property.

Contract pack

A bundle of documents which a seller’s Conveyancer sends to the buyer’s Conveyancer. Normally contains property deeds, electrical and gas certificates, planning permissions and other documents. This can then be examined so that the buyer’s conveyancer can raise Enquiries.

Conveyance

A legal document which was previously used to transfer ownership of land. Has now been replaced by Transfers.

Deposit

A sum of money (generally 10% of the purchase price) paid by the buyers to the sellers of a property. This is paid on Exchange of Contracts and may be kept by the seller if the buyer fails to complete the purchase.

Exchange of contracts

Exchange of Contracts is when the buyer and seller become contractually obliged to purchase the property. Your Conveyancer will confirm exchange with the other party using a regulated procedure and send or receive the deposit. If either party pulls out after this, there are significant financial consequences.

Fittings and contents forms

An industry standard form which a seller fills out to list exactly what items are included or excluded for a sale. Can also be used to offer for sale individual items within the house.

Particulars of sale

A short summary of a transaction prepared by an Estate Agent.

Registration

The process of officially notifying the Land Registry of a transaction following Completion.

Registration takes place after completion and can take several weeks or months depending on Land Registry processing times.

Standard conditions of sale

An industry standard of written terms produced by the Law Society to which residential sale contracts are normally subject.

Title Register

The official Land Registry document showing ownership details, mortgages, rights and restrictions affecting a property.

Transfer

A Land Registry form which is used as the instrument to transfer land. Both the seller and the buyer will sign their respective Transfer form, which will have the date inserted on Completion.

Payments and costs

Buying or selling a property involves more than just the purchase price. There are various taxes, fees and payments that come into play at different stages, and it's important to understand what each one is and when you'll need to pay it.

Your conveyancer will always keep you informed, but here's a handy guide to the financial terminology you're likely to encounter.

Apportionments

This relates to the division of outgoing costs due at the Completion date. For example Service Charge, the buyer is responsible for reimbursing the seller for a portion of any charge paid in advance from the date of Completion.

BACS payment

A method of payment through a bank which is free but usually clears within three working days.

Completion Statement

A financial statement prepared by a conveyancer showing all sums due, including legal fees, disbursements, SDLT and any balance required from the client.

Disbursement

A payment made by your Conveyancer on your behalf for a service or product, such as Searches or Official Copies.

Stamp Duty Land Tax (SDLT)

A tax payable by purchasers of property. It is calculated based on the purchase price, with additional charges arising in certain circumstances - for example, where the buyer already owns another property.

Telegraphic Transfer / CHAPS

A method of same-day bank transfer, typically subject to a small fee.

Conveyancing with Clapham & Collinge

We know that buying or selling a property is one of the biggest decisions you'll ever make. At Clapham & Collinge, we're here to guide you through every step of the process, making sure you always understand what's happening and why.

If you have any questions at all, don't hesitate to get in touch with our friendly conveyancing team.

Offices:

Norwich — 01603 693500

Sheringham — 01263 823398

North Walsham — 01692 660230

Email: enquiries@clapham-collinge.co.uk

The information in this article is for general guidance only and should not be treated as legal advice. It is not a substitute for obtaining advice tailored to your circumstances. While we aim to ensure accuracy at the time of publication, laws and guidance may change. Clapham & Collinge LLP accepts no liability for any loss arising from reliance on this content. For personalised advice, please contact our client relations team to book an appointment.