Jargon buster

D P Roberts Hughes and Denye have been in business for over 40 years and so know the importance of effective communication.  Too often Solicitors take it for granted that lay clients understand the technical words and phrases that Solicitors use between themselves.  We are committed to providing to our clients the best possible service.  Our ambition is to build relationships with clients that last.  That ambition can only be achieved if our advice to our clients is clear, accurate, and pitched at their level.

Selling and buying houses can be a very stressful time for clients.  For us it is commonplace as we deal with hundreds of transactions each year.  However it can be confusing for individuals when they are faced with strange words and phrases that have no place in everyday language.  At D P Roberts Hughes and Denye we pride ourselves on effective communication and want to make sure that at all stages of a transaction our clients fully understand the steps involved when buying or selling a property.

Here’s our quick Jargon Buster for Conveyancing:

Conveyancing – the process of buying or selling a property

Local Search – a search undertaken with the Local Council to establish certain information relevant to the property such as maintenance of roads and sewers, existence of compulsory purchase orders, plans for road improvements, or planning and building regulation breaches.  Despite its name, the search only confirms information for the address itself and not for neighbouring properties.  The only “local” element is the confirmation of road and rail proposals within 200 metres of the property.

Environmental Search – a search undertaken to confirm the existence of any potential environmental problems such as local landfill sites, flooding risks, past or present industrial uses, or the possibility of ground contamination.

Freehold – ownership of a property to the exclusion of others indefinitely.

Leasehold – ownership of a property for a specified period of time and subject to payment of rent and possibly service charges.  The rent is paid to a Landlord and service charges may be paid to cover the cost of maintenance of common areas such as communal gardens or communal driveways.

Official Copies – formerly called “Office Copies” these are documents produced by the Land Registry which provide evidence of a person’s ownership of a property and show the extent of the land and buildings owned by reference to a plan.

Restrictive covenants – obligations affecting a property which have to be observed by the owner of the property, such as “no trade or business to be carried on”, “not to cause nuisance or annoyance to neighbours”, or “not to park commercial vehicles on the driveway”.

Exchange of contracts – the process by which all parties in a chain become legally bound to complete the property transaction on a certain date and at a fixed price – in effect a series of telephone calls between the Solicitors to agree that the contracts are binding on their respective clients.

Deposit – the amount of money paid by the Buyer of a property to the Seller to act as security to the Seller for its losses should the Buyer withdraw after exchange of contracts (commonly between 5% and 10% of the purchase price).

Mortgage Deed – the document signed by the Buyer which sets out the Buyer’s obligations to the mortgage lender.

Mortgage redemption – repayment of the outstanding mortgage by the Solicitor on the Seller’s behalf.

Certificate of Title/Report on Title – the document signed by the Solicitor and sent to the mortgage lender to authorise the release of mortgage funds.

Mortgage advance – the money sent to the Buyer’s Solicitor by the mortgage lender to assist in the purchase of the property.

Telegraphic Transfer/CHAPS Transfer – the electronic transfer of funds from one bank to another, for instance, from one Solicitor’s bank to another on the day of completion to transfer the purchase price.

Stamp Duty Land Tax – the tax paid by the Buyer based on a percentage of the purchase price.  Currently no tax is paid on properties worth £175,000 or less, 1% is paid for properties over £175,000, 3% on properties over £250,000 and 4% on properties worth over £500,000. 

Title Deeds – documents showing the history of ownership of a property, now superseded in most cases by the Land Registry’s computerised records.

Completion – the moving date!