Property Law Jargon Guide for Domestic Properties

If you’re buying, selling or letting out a new property, chances are you’re going to be using a professional property law team to help you. However, with so much paperwork exchanging hands and random words used in conversation, you may not be sure what is going on during such a complicated time. Here is a brief guide to property law jargon to help you understand your situation and what you need from your property solicitor today.

Auction - a public sale in which goods or properties are sold to the highest bidder.

Buyer - the person(s) buying the property.

Building survey - is a survey that includes extensive property information and details regarding the construction, the exterior and interior of the property.

Chain - a series of linked property transactions made up of buyers or sellers - it starts with a new buyer who has nothing to sell and ends with a seller who has nothing to buy. There could be many other people caught in their “chain” who are looking to buy those properties and sell on their own first.

Contract - a legal document laying out the terms of the sale and purchase of a property. Once contracts are exchanged and signed by both parties, it becomes legally binding.

Conveyancing - the legal description for the services carried out by a solicitor that transfers ownership of a property from one person to another.

Deposit - a sum of money paid by the buyer to the seller’s solicitor once a contract is agreed to secure the property against them. It’s usually 10% of the agreed purchase price, but can be larger, and is non-refundable.

Disbursements - costs paid out by your conveyancing solicitor to third parties, such as reports and surveys etc.

Equity - the value that is left after deducting any mortgage debt outstanding on your property from the current worth of the property (e.g. if your property is worth £200,000 and your mortgage debt is at £125,000, your equity would be £75,000, once sold).

Homebuyers report - will identify any visible structural problems, such as rot, damp or asbestos. It may also include a valuation which enables buyers to renegotiate the price of a property.

Mortgage - a legal agreement and loan taken out with a bank or building society to buy a property, which is secured against the value of your home until it is paid off.

Remortgage - where the previous mortgage is replaced with a new one. This is usually done to get better mortgage terms or to release equity on the property.

Seller - the person(s) selling the property.

If you’re looking to buy or sell a home but need help navigating through all the legal jargon, admin work and forms, contact Andrew Lee Property Lawyers in Maidstone, Kent today on 01622 750 101 or email us at info@a-lee.com .