Buying or selling a property can feel overwhelming. Alongside financial decisions and legal checks, you will encounter a range of terms that may not be familiar. In England and Wales, the property sector uses specific language that can leave people confused. Understanding these terms can make the process smoother and help you make better decisions.
This guide explains common property sector jargon in simple terms. We focus on language you are likely to see during a property transaction and explain why each term matters.
What is Conveyancing?
Conveyancing is the legal process of transferring property ownership from one person to another. It begins once an offer is accepted and ends when the transaction completes. A solicitor or licensed conveyancer usually handles conveyancing on your behalf.
Conveyancing covers several tasks, including:
- carrying out local authority searches
- checking title deeds
- preparing contracts
- managing funds through a client account
- completing registration with HM Land Registry
- Satisfying any lender requirements
Conveyancing is essential because it ensures the property you are buying is legally sound and free from hidden issues.
Understanding “Title” and “Title Deeds”
Title refers to the legal right to own and use a property. When you buy a home, your conveyancer will check the title to make sure the seller has the legal right to sell.
Title deeds were traditionally physical documents proving ownership. Today, most properties in England and Wales are registered electronically with HM Land Registry. Your conveyancer will obtain an official copy of the title register and plan to confirm what you are buying.
Searches Explained
Searches are investigations into factors that might affect the property. They are a routine part of conveyancing.
Common searches include:
Local authority search
This reveals planning issues, building regulations, road schemes and other factors that might affect the property.
Environmental search
This checks risks such as flooding, contaminated land or ground instability.
Water and drainage search
This shows whether the property is connected to mains drainage and the location of pipes.
Search results can influence whether you proceed, renegotiate, or withdraw from the purchase. Most lenders require these as part of their mortgage offer.
Exchange of Contracts and Completion
Two key stages in the legal process are exchange of contracts and completion.
Exchange of contracts
This is the point at which the buyer and seller become legally bound to the transaction. Contracts are signed by both parties and exchanged through the conveyancers. Once contracts are exchanged, backing out can lead to financial penalties.
Completion
Completion is when the purchase is finalised. The purchase price is paid in full to the seller’s conveyancer, and the buyer receives the keys. Completion can take place on the same day as exchange or at a later agreed date.
What is a Deposit?
A deposit is a portion of the purchase price paid by the buyer when contracts are exchanged. It is usually 5 to 10 per cent of the purchase price, but this can vary. Once paid at exchange, the deposit is non-refundable unless the contract allows otherwise.
Leasehold and Freehold in Simple Terms
Understanding the difference between leasehold and freehold is vital.
Freehold means you own the property and the land it stands on. You are responsible for maintenance and insurance.
Leasehold means you own the property for a set number of years but not the land. A lease sets out the terms, including ground rent, service charges and responsibilities. At the end of the lease term, ownership of the property reverts to the freeholder unless the lease is extended.
Flat purchases are often leasehold. Lease length and conditions can affect value and mortgage availability.
Fixtures and Fittings
During a conveyancing transaction, you may see references to fixtures and fittings.
Fixtures are items that are permanently attached to the property, such as kitchen units or bathroom suites.
Fittings, sometimes called chattels, are moveable items that are not permanently fixed, such as curtains or freestanding appliances.
The contract will list what stays with the property and what the seller will take.
Chain and Chain-Free
The property chain refers to the sequence of linked transactions. For example, if you are buying a property and the seller is also buying another home, those transactions form a chain. Delays in one part of the chain can affect all others.
A chain-free sale is one where no onward purchase is dependent on the transaction. Buying a house from someone who has already sold and is not buying another property can reduce delay risk.
Mortgage Offer and Valuation
Most buyers need a mortgage to fund their purchase. Once you apply, your lender assesses your finances and the property.
A mortgage offer is the formal document from a lender confirming how much they will lend, subject to conditions.
A valuation is an assessment of the property’s value, carried out by the lender’s surveyor. The purpose is to ensure the property is worth the amount you want to borrow.
Exchange vs Completion Dates
The exchange date is when contracts are legally binding. The completion date is when the sale is finalised, and you take ownership.
These dates can be the same, but often completion occurs days or weeks after exchange to give both parties time to prepare.
Stamp Duty Land Tax (SDLT) and Land Transaction Tax (LTT)
In England and Wales, buyers must consider Stamp Duty Land Tax/ Land Transaction Tax. SDLT/LTT is a tax on property purchases above a certain price. The amount depends on purchase price bands and whether you already own property.
Your conveyancer calculates SDLT/LTT and submits the return to HM Revenue and Customs on your behalf.
Why Understanding Jargon Matters
Property transactions involve significant financial and legal commitments. Misunderstanding a term could lead to delays, unexpected costs or contractual issues. Clarity allows you to make informed decisions and ask the right questions of your conveyancer.
Final Thoughts
Property jargon can be confusing, but it becomes manageable when explained in clear language. If you are unsure about any term or stage in your transaction, speak to your conveyancer. They are there to guide you through the legal steps and ensure that you understand what you are agreeing to.
For personalised advice, contact a qualified conveyancing specialist who can explain terms in the context of your situation. Understanding the language of property will give you confidence and control throughout your transaction.
Insights from Molly Davies
Solicitor
