APPORTIONMENT
The proportionate sum of money that a person must contribute or is entitled to receive. For example, on completion of the sale of a Leasehold property, it will usually be necessary to apportion the rent and service charge due to the Landlord between the buyer and seller up to the date of the sale and thereafter, so that it is shared fairly between them.

BANKRUPTCY SEARCH
Formal enquiry made by the buyer’s solicitor on behalf of the Lender to ensure that the buyer is not bankrupt. Usually done just before completion.

BREACH OF CONTRACT
Where one party to a Contract fails to keep their part of the Contract with the other party.

BRIDGING LOAN
A loan taken out to “bridge the gap” whilst waiting for the sale of a property or the receipt of a Mortgage.

BUILDING REGULATION CONSENT
Approval by the Local Authority on the design and materials used in building work.

CAPITAL GAINS TAX
A government tax on the sale of assets, including property. Generally speaking a person’s principle residence is exempt.

CAVEAT EMPTOR
The legal rule which means the buyer is responsible for finding out the condition of the property and matters affecting the legal title using Surveyors and Solicitors.

CERTIFICATE OF TITLE
A standard Form provided by a Mortgage Lender used by a Solicitor or Lawyer to request the Mortgage advance.

CHAIN
A series of transactions that are dependant on one another. One person can only exchange on their purchase when they exchange on their sale and so on.

COAL MINING SEARCH
A special Search designed to ascertain whether any issues might affect a property.  These will be carried out in a designated area.

CONSERVATION AREA
Area protected by Local Authorities. Properties may be subject to planning restrictions particularly relating to the exterior of the property.

CONTRACT
This is the agreement to buy or sell that sets out all of the terms. One copy is signed by the buyer and one by the seller. There is no binding agreement until Contracts are "exchanged".

CONTRACT RACE
Where a seller decides to deal with more than one prospective buyer, with a view to exchanging Contracts with whoever is ready first. There are strict rules to be followed by Solicitors in these cases.

COMPLETION
The day when the property is transferred to the buyer.  On the day agreed for completion set by the Contract, the buyer’s Solicitors will pay to the seller’s Solicitors the balance of the purchase price (taking into account any deposit already paid) and the seller’s Solicitors will provide to the buyer the Transfer document and the title deeds to the property. The completion day is the day when the seller must move out and the buyer is entitled to move in. The time of day the seller must vacate by is set out in the Contract.

COMPLETION STATEMENT
This is a financial breakdown of your purchase and all the related costs.
It ends by stating the amount of money your Conveyancing Solicitor needs from you to complete on your new home.

CONFLICT OF INTEREST
Where two parties we act for have different interests, we cannot protect the interests of both and therefore if a conflict arises a client or both clients may have to instruct another firm to look after their respective interests.

CONVEYANCING
Formal name for the process by which the ownership of land is transferred from one person to another.

COVENANT
Legal obligations in a Deed requiring someone to do something e.g. maintain a boundary.

DEFECT IN TITLE
A flaw in the title to the property i.e. where the seller is unable to produce a copy of a relevant Deed.

DEPOSIT
This is part of the purchase price and is due for payment on exchange of Contracts. It is usually 10% of the purchase price however a reduced figure is commonly negotiated. If you are selling as well as purchasing the deposit usually comes from the deposit for the sale.

DISADVANTAGED AREA RELIEF
A reduction in Stamp Duty Land Tax for properties in certain designated areas.

DISBURSEMENTS
Simply put, this means items that the Conveyancer must pay to other persons on your behalf. Typically these are VAT, Stamp Duty, Land Registry Fees and Searches.

EASEMENT
A right given to a property owner over an adjoining property. For example, a right of way.

ENERGY PERFORMANCE CERTIFICATE
A compulsory element of any Home Information Pack.

ENVIRONMENTAL SEARCH
A Search used to ascertain whether there are any environmental issues affecting a property. For example, radon gas.

EXCHANGE OF CONTRACTS
At this point the agreement to buy or sell becomes legally binding and the buyer becomes responsible for insuring the property. Neither the seller nor buyer can pull out without serious legal and financial consequences.

FIXTURES AND FITTINGS FORM
A detailed list compiled by the seller of items to be either included or excluded from the sale.

FLYING FREEHOLD
Where part of one Freehold property is built over another so that it does not touch the ground.

FREEHOLD
Any type of title to a property that continues indefinitely. The highest form of ownership. A 'freeholder' may create Leases in favour of other people or sell the property without usually needing the consent of anyone.

GAZUMPING
This is where the seller sells to another buyer for a higher price. This can only happen before exchange of Contracts.

GAZUNDERING
This is where the buyer lowers his offer on the property after agreeing a price. This can only happen before exchange of Contracts.

GROUND RENT
The annual rent payable in return for a Lease of land.

HOME INFORMATION PACK (HIP)
Introduced by the Government in 2007. They include in-depth information about a property, such as title information and an Energy Performance Certificate.

INDEMNITY INSURANCE
A type of Insurance to support for example a defective title or lack of Building Regulation Consent.

JOINT TENANCY
One method of co-ownership. Upon death of one of the co-owners, the deceased’s share in the property will automatically pass to the surviving owner. 

LAND REGISTRY
The body which records details of all land in England and Wales and keeps a record of transactions affecting land and details such as its current owners and any Mortgages or restrictions on it. Not all land details are currently recorded at the Land Registry as it has not until quite recently been compulsory to register land on a transfer of ownership. The Land Register is now open to the public and anyone may inspect it on payment of a fee.

LAND REGISTRY SEARCH
Searches made to ensure that no changes have been made to the Land Register or any Mortgages created by the seller which have not been disclosed to the buyer. 

LEASEHOLD
As opposed to a Freehold title, this type of title exists for a definite period, for example 99 years or 999 years. Almost all Flats are Leasehold.

LISTED BUILDING
A building of historic or architectural interest. The property will be affected by special restrictions.

MANAGEMENT COMPANY
They are responsible for the maintenance and upkeep of many Leasehold properties.

MONEY LAUNDERING CHECKS
Certain identity checks that Solicitors must carry out before acting for a client.

MORTGAGE
A loan used to pay for all or part of a purchase of a property.

NHBC
A Warranty scheme for new build properties against major structural problems for 10 years.

NEGATIVE EQUITY
Where the debts secured against a property exceed its value making the properties sale difficult.

OFFICE COPY ENTRIES
Official Copies of the Land Registry's entries for the property needed to prove the seller's ownership.

PLANNING PERMISSION
Approval by the Local Authority to the building or change of use or extension to an existing property.

PRELIMINARY OR PRE-CONTRACT ENQUIRIES
This is a set of questions that is sent to the seller’s Conveyancer by the buyer’s Conveyancer relating to the property. Typically these questions will consist of enquiries relating to boundaries, easements, persons living at the property etc.

REDEMPTION
Repayment of an existing Mortgage.

REDEMPTION STATEMENT
This is what it costs to pay back your Mortgage early.  It consists of the money you still owe your Lender and probably an "early redemption" penalty too.
This penalty payment compensates your Lender for the interest they will lose out on from your loan not running its full term.

REGISTERED LAND
Property whose title is registered at the Land Registry. Since 1 December 1990, title to all land in England and Wales must be registered.

RETENTION
Money withheld by a Lender until certain works have been undertaken and in some instances reinvested.

SEARCHES
There are many different types of Conveyancing Search. Which Searches are needed for your property will be assessed by your Conveyancers. A brief list follows:-

• Bankruptcy Search
• Brine Search
• Coal Mining Search
• Commons Registration Search
• Company Search
• Environmental Search
• HM Land Registry Search
• HM Land Charges Search
• Index Map Search
• Local Search
• Tin Mining Search
• Water Authority/Drainage Search

SERVICE CHARGE
Payment under a Lease for maintenance and repairs to a property to the Management Company or Landlord.

SHARED OWNERSHIP
A relatively new scheme allowing the purchase of a property jointly with a Housing Association with the option of purchasing an enhanced share in due course.

STAMP DUTY LAND TAX
A tax paid by the buyer to the Government, the amount varies according to the price of the property.  The rates are as follows:-

Rate	Land in disadvantaged areas - residential	Land in disadvantaged areas - non-residential	All other land in the UK - residential	All other land in the UK - non-residential
Zero	£0 - £150,000	£0 - £150,000	£0 - £125,000	£0 - £150,000
1%	Over £150,000 - £250,000	Over £150,000 - £250,000	Over £125,000 - £250,000	Over £150,000 - £250,000
3%	Over £250,000 - £500,000	Over £250,000 - £500,000	Over £250,000 - £500,000	Over £250,000 - £500,000
4%	Over £500,000	Over £500,000	Over £500,000	Over £500,000

SURVEY
Report carried out by a Surveyor upon the physical condition of a property. There are several different kinds of Report, depending on the detail the buyer wishes to have. Where the buyer is purchasing with a Mortgage then the Lender will require a Mortgage Valuation. This is only a Surveyor’s opinion as to the current market value of the property and is intended simply to ensure that the Lender is not lending more than an acceptable proportion of the value of the property.

TELEGRAPHIC TRANSFER FEE
This is a bank charge for sending money from bank to bank.

TENANTS IN COMMON
A method of co-owning a property as opposed to joint tenancy. In this method the upon the death of one of the co-owners the share of the deceased owner will not pass automatically to the surviving owner. This method of ownership is more commonly used for business property and where couples or family members buy together and contribute unequal shares.

TITLE DEEDS
Documents that prove ownership of a property.

TRANSFER
The name of the Deed which transfers the ownership of a property from the seller to the buyer.

TREE PRESERVATION ORDER
An order made by a Local Planning Authority which prevents trees from being cut down or lopped without permission.