Glossary

The point when contracts have been exchanged and ownership legally passes to the buyer.

The point at which buyer and seller are legally bound to the sale and purchase of the property

Expenses paid by the solicitor on behalf of the purchaser

This occurs when the seller needs the sale of their house to occur before they can complete the purchase of another property. The same situation may exist for others in the chain. As a result, the whole chain can collapse if one link breaks.

Absolute ownership of property and land

The ownership of a lease

A certificate or statement from a lender or mortgage advisor to say that ‘in principle’ they would lend a certain amount to a particular prospective borrower or borrowers based on basic information.

When a seller chooses more than one Estate Agent to sell their home.

When a seller chooses only one Estate Agent to sell their home.

A type of mortgage in which the mortgagor is only required to pay off the interest that arises from the principal that is borrowed. Because only the interest is being paid off, the interest payments remain fairly constant throughout the term of the mortgage.

A basic mortgage capital and interest on the loan are paid off in monthly installments.

When the value of your house falls to less than your mortgage.

A search carried out by your solicitor to find out if there are any Local Authority Notices, with respect to the building itself (e.g. has it been condemned?), and the surrounding area (e.g. have plans gone through to build a motorway next to the house?)

A report constructed by the surveyor detailing firstly, whether the house is structurally sound and secondly, listing the major/minor defects, (including the necessary work which needs to be done).

A survey carried out by the lender to ensure that the house’s value is not less than the proposed loan. Often the lender will arrange the survey and bill the buyer.

Carried out by your solicitor to register buyer as the new owner of the house

Legal work involved in buying and selling a house

A common practise whereby the seller, having already accepted an offer from Party A, accepts a higher offer from Party B