Glossary
Agreement in Principle (AIP)
A statement from a lender saying how much they may be willing to lend you, based on basic financial checks. Not a guarantee, but useful when making offers.
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Chain
A linked set of property transactions where each purchase depends on another sale completing. If one falls through, it can affect the whole chain.
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Completion
The final stage in buying/selling when the purchase money is transferred and ownership officially changes hands. You get the keys on completion day.
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Completion Statement
A detailed breakdown of all costs, fees, and money transfers involved in your transaction, provided before completion.
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Contract
The legal agreement prepared by solicitors/conveyancers that sets out the details of the property sale or purchase. Becomes binding once exchanged.
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Deposit
The money (usually 10% of the purchase price) paid on exchange of contracts to show commitment to the purchase.
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Disbursements
Additional costs your conveyancer pays on your behalf, such as Land Registry fees, search fees, or Stamp Duty.
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Exchange of Contracts
The point when signed contracts are swapped between buyer’s and seller’s solicitors. The sale becomes legally binding at this stage.
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Fixtures and Fittings
Items in the property that may or may not be included in the sale (e.g. carpets, curtains, kitchen appliances). Agreed using a special form.
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Freehold
Owning the property and the land it’s built on outright, with no time limit.
Gazumping
When a seller accepts a higher offer from another buyer after already accepting your offer, before contracts are exchanged.
Gazundering
When a buyer lowers their offer just before exchange, putting pressure on the seller to accept.
Indemnity Insurance
An insurance policy that covers certain legal risks (e.g. missing paperwork, building regulation issues).
Joint Tenancy
A way of owning property with another person where both own the whole property together. If one dies, the other automatically owns it all.
Land Registry
The official government body that records property ownership in England and Wales.
Leasehold
Owning the property for a set number of years, but not the land it’s built on. You usually pay ground rent and service charges to the freeholder.
Local Authority Searches
Checks with the local council for planning issues, building regulations, road schemes, or other matters that may affect the property.
Mortgage Offer
Formal confirmation from a lender that they will provide a loan for your purchase, including conditions and terms.
Redemption
The act of paying off your mortgage in full, often when you sell or remortgage.
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Stamp Duty Land Tax (SDLT)
A government tax paid on property purchases over a certain price in England and Northern Ireland.
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Survey
An inspection of the property carried out by a surveyor to highlight any problems or issues.
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Title Deeds
Legal documents proving who owns the property. Now usually held electronically by the Land Registry.
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Transfer Deed
The document signed by the seller that transfers legal ownership of the property to the buyer.
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Vendor
The legal term for the seller of the property.