Glossary & FAQ’s
What does the term conveyancing mean?
Conveyancing is the legal process that is carried out when transferring the ownership of a property from the owner to the vendor.
What does the term “contract” mean?
A contract is a document that is entered into by both the vendor and the purchaser which then becomes legally binding upon exchange of contracts.
What does the term “exchange of contracts mean?
Exchange of contracts is the point at which the vendor and purchaser exchange legal binding contracts of the purchase and sale.
What does the term “completion” mean?
When a sale is finalised and all monies have exchanged, the purchaser has all legal rights to the property.
What does the term “freehold” mean?
The vendor has complete ownership of the land on which the property is build.
What does the term “leasehold” mean?
Possession of the land is subject to an annual fee of a ground rent to the owner to the freehold. Typically a leasehold property is normally a flat, although in some areas houses and bungalows of leasehold tenure exist.
What does the term “market appraisal” mean?
This is an evaluation of the property carried out by the selling agent, who will then advise in their estimation, the current market value of the property. Also, known as a valuation.
What does the term “vendor” mean?
The vendor is the owner of the property.
What does the term “Vacant Possession” mean?
The term vacant possession means that the previous occupants must vacate the property before the buyer moves in, including any tenants that may have been staying at the property.
What does the term “applicant” mean?
Your estate agent will referrer to a potential buyer as “applicant”.
What is meant by the term “fixtures & fittings”?
When a property is up for sale, fixtures & fittings are any items that are to be included in the sale. Usually this applies to carpets, curtains and lights.
What is meant by the term “under offer”?
A property will be known as “under offer” when a buyer has made a formal offer to purchase, but it is still waiting for the vendor/owner to accept.
Viewings are still arranged for anyone else who may wish to purchase the property. A property remains on the market until an offer is accepted. Once the offer is accepted the states then changes to sold subject to contract”
What does the term “sold subject to contract” mean?
If a property is “sold subject to Contract” or SSTC, this means that the vendor has accepted an offer from a vendor but the paperwork is not been completed.
What is the cost of selling a house?
Usually there are two separate costs incurred by a sale, the estate agency fee and the legal fees for the conveyance.
At what stage do I instruct a solicitor?
Good professional advice and guidance is invaluable. We would always recommend that a solicitor’s advice is sought at the earliest opportunity.
What is stamp duty and when do I pay it?
Stamp Duty is a government tax which is payable only by the Buyer once the purchase is complete. Your solicitor will deal with this tax on your behalf.
Stamp duty payable
Nil up to £125,000
Exempt from stamp duty
£125,001 - £250,000
1% of the purchase price
£250,001 - £500,000
3% of the purchase price
4% of the purchase price
What is a chain sale?
Normally, a sale relies upon a number of other properties to complete at the same time. Sometimes a delay one completion will result in the whole chain being affected, however here at Roberts Edwards and Worrall will attempt to manage the process to ensure that completion occurs smoothly and efficiently.
When a property is offered for sale without a chain can look appealing to certain buyers as the chance of delay is minimised.
What is land registry?
The land registry is a government department who deal with all details of properties with a registered title are recorded.