GLOSSARY OF KEY TERMS AIP (Agreement in Principle) A lender’s early indication of how much they may be willing to loan a buyer, based on initial checks. APR / APRC Annual Percentage Rate / Annual Percentage Rate of Charge — the true cost of a mortgage including fees and interest. Asking Price The initial price a property is marketed at; not necessarily the final sale price. Beneficiary Someone who receives assets (like property) from a will or trust. Bidding War When multiple buyers compete with higher offers, often raising the final sale price. Bridging Loan A short-term loan used to “bridge” the gap between purchasing a new property and selling an existing one. Buyer Chain A sequence of linked transactions where each buyer relies on the sale of their own property to proceed. Capital Gains Tax (CGT) Tax on profit made from selling a second home, rental, or investment property. Chain-Free / No Chain A sale where the buyer or seller doesn’t need to sell another property to proceed, reducing delays. Completion The final legal step in the sale where ownership transfers and keys are handed over. Completion Statement A financial breakdown from your solicitor showing fees, deposits, and transfer amounts before completion. Conveyancing The legal process of transferring property ownership from seller to buyer. Counter-Offer A revised offer made after rejecting the initial one, often including new terms or a different price. Covenant A legal obligation or restriction attached to a property’s title (e.g., no extensions without permission). Deposit (Buyer’s Deposit) The sum paid on exchange of contracts — usually 10% of purchase price. Disbursements Third-party costs paid by the solicitor (e.g., searches, Land Registry fees). Downsizing Selling a larger home to move into a smaller, cheaper one. Draft Contract The first version of the legal contract prepared by the seller’s solicitor. EPC (Energy Performance Certificate) A document showing a property’s energy efficiency rating from A to G. Escalation Clause A clause allowing a buyer to increase their offer up to a defined limit automatically during bidding. Exchange (Exchange of Contracts) The point at which the sale becomes legally binding in England and Wales. Fixtures & Fittings Items either attached to the property (fixtures) or removable (fittings); must be listed on TA10. Gazumping When a seller accepts a higher offer from a new buyer after already agreeing a price with someone else (England/Wales). Gazundering When a buyer lowers their offer just before exchange, often putting pressure on seller. Ground Rent A fee leaseholders must pay to the freeholder for land usage. Indemnity Insurance A policy covering legal or paperwork risks such as missing building regs or boundary issues. Leasehold Ownership of a property for a fixed period (e.g., 99 or 125 years), but not the land it sits on. Local Searches Legal checks ordered by your solicitor on things such as planning history, road adoption, flooding, or restrictions. Missives The Scottish legal contract system — once concluded, the sale becomes binding. Offer (Subject to Survey) An offer that may change depending on the results of the buyer’s survey. Porting a Mortgage Transferring an existing mortgage to a new property. Premium Listing An enhanced online listing (e.g., Rightmove Featured Property) that increases visibility. Probate Property A property being sold following the owner’s death; requires legal authorisation (Grant of Probate). Redemption Statement A document showing exactly how much is needed to pay off your existing mortgage. Restrictive Covenant Rules limiting how a property can be used or altered (e.g., no commercial vehicles). RICS Survey A property survey carried out by a Chartered Surveyor from the Royal Institution of Chartered Surveyors. Search Pack / Searches Legal checks covering issues like local planning, drainage, environmental risks, and land contamination. Service Charge Payments by leaseholders for building maintenance, insurance, and communal areas. Sole Agency Agreement A contract where only one estate agent has the exclusive right to sell your home for a set period. Stamp Duty Land Tax (SDLT) Tax paid when buying property in England and Northern Ireland. TA6 Form The Property Information Form — detailed disclosure about the home. TA10 Form The Fittings and Contents Form — lists what is included in the sale. Title Deeds Official documents proving property ownership. Under Offer Indicates a buyer has made an accepted offer but contracts haven’t been exchanged yet. Valuation Survey A basic check carried out for mortgage lenders to confirm property value — not a full survey.