When you are selling your home, or buying a new one, you may find that you are bombarded with various complicated sounding terms. Here are a few of the commonly-used terms, and what they actually mean;
1. Buildings survey – sometimes just referred to as a ‘survey’. This is technical report, carried out by a surveyor, on your property. A full inspection will be undertaken, and the condition of your property noted, including any structural issues. The survey information is then produced in the form of a report.
2. Capital Appreciation – the increase in value of a property/asset over a period of time. This increase contributes to a positive return on a property investment.
3. Chain – a common occurrence in the house selling process, this refers to a number of linked property purchases/sales where the exchange of contracts must take place at the same time, to allow all parties to complete on a certain date.
4. Commission – this is a fee paid to your estate agents, and usually takes place following the exchange of contracts.
5. Completion – this is the date when the seller and buyer complete the sale of a property. The buyer pays the balance of the purchase price and the seller gives possession of the property to the buyer.
6. Contract – a contract is an official document, detailing the terms of the sale. A contract is usually created by the sellers’ solicitor, and a copy given to the buyer.
7. Deeds – the ‘title deeds’ are the legal documents relating to a property. These documents include details on any matters relating to a property since it was built.
8. Deposit – this is an initial percentage of money you pay upon exchange of contracts, to secure the purchase of a house.
9. Equity – the difference between the amount owed on a mortgage, and the current value of a property.
10. Freehold – legal ownership of land, a freehold means absolute ownership of a property (though technically speaking, all land is held from the Crown).
11. Guarantor – this is a person who guarantees or ‘backs-up’ the financial obligation of another person, offering their money as security.
12. Leasehold – to be granted ownership of a property but not the land it is built on. A leasehold property usually requires payment of ground rent to a landlord.
13. Transfer – the legal transfer upon completion of a sale of ownership of a property.
14. Vendor – the vendor is the legal owner of the property for sale.