Glossary of Terms: Residential Conveyancing

Completion
Final completion of the transaction when the Seller receives the money and the Buyer receives the keys

Deed of Covenant
A document or deed containing an agreement to pay or do something

Deeds
Documents which establish ownership and confirm the Owner's title to the property

Disbursements
Payments made by ourselves on your behalf but for which you will be responsible

Environmental Search
A search to see whether there is any indication that the property may be affected by contamination, flooding etc

Exchange of Contracts
The formal exchange of the two identical copies of the Contract when the Seller and Buyer become legally bound to complete the transaction on an agreed date

Freehold
When you buy a property to own it and the land it is on, outright. Houses are more likely to be sold on a freehold basis

Ground Rent
This is the annual fee received by a freeholder where the property is leasehold

Indemnity Insurance
A protection policy sometimes purchased during the conveyancing process. For a one-off payment, you get a policy that covers the cost implications of a third party making a claim against any defects with the property you are about to buy

Joint tenancy
If you’re buying a house with a partner as joint tenants, you’ll both own the property equally – there are no separate, identifiable shares. You both share the financial obligations and any benefits of joint ownership.  Alternatively, you can opt to be tenants in common; you each own separate identifiable shares in the property

Mining Search
A search to check whether the property may be affected by past or present coal mining and, in particular, the risk of subsidence 

Mortgage Deed
A document used when a Lender lends money to a Buyer or existing Owner. The document is registered against the property at the Land Registry and secures repayment to the Lender

Mortgage Offer
This specifies the terms upon which the Lender is prepared to make the loan including the specific financial details and period of repayment 

Mortgage valuation survey
When you apply for a mortgage your lender will commission a mortgage valuation, also known as a valuation survey, to assess whether the house is worth what you’re planning to pay for it

Radon Gas Search
A search to see if the property is affected by naturally occurring radioactive gas which may if above certain safety levels, require preventative action to be taken (e.g. more ventilation in a property)

Searches
These are checks on local authority records to show up planning applications, highways, restrictions and land charges. Further searches may be requested by a solicitor such as chancel (a legal obligation to pay for repairs to the parish church), utilities, drainage etc. if they feel this is appropriate. Your solicitor may ask for payment for searches in advance

Shared ownership
Where you buy a stake in a property, while paying rent on the remaining share to the housing association or private developer that own the building, making the cost of owning more affordable

Stamp Duty Land Tax
A government tax payable on completion of the purchase of a property over a certain value. (aka, SDLT or simply Stamp Duty)

Transfer of Equity
A document transferring ownership of a part share or interest in a property from one person to another

Vacant Possession
A Seller required to give vacant possession must (on completion) leave the property (including the garden and outhouses) empty of people, possessions and rubbish