Glossary of 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 total cost of a mortgage including interest and fees.

Asking Price
The advertised price of a property; not always the final sale price.

Beneficiary
Someone who receives assets (including property) through a will or trust.

Bidding War
When multiple buyers increase their offers to compete for a property.

Bridging Loan
A short-term loan used to cover the gap between buying a new home and selling an existing one.

Buyer Chain
A linked sequence of buyers and sellers where each purchase depends on another sale completing.

Capital Gains Tax (CGT)
Tax on profit made from selling a second home, rental property, or investment property.

Chain-Free / No Chain
A sale where the buyer or seller does not depend on another property sale, usually reducing delays.

Completion
The final legal stage of a sale when ownership transfers and keys are handed over.

Completion Statement
A financial summary from the 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 with different terms or price.

Covenant
A legal obligation or restriction attached to a property’s title (e.g., limits on building work).

Deposit (Buyer’s Deposit)
The amount — usually 10% — paid by the buyer on exchange of contracts.

Disbursements
Third-party fees paid by the solicitor (e.g., searches, Land Registry fees).

Downsizing
Selling a larger property to move into a smaller, more manageable one.

Draft Contract
The first version of the legal contract prepared by the seller’s solicitor.

EPC (Energy Performance Certificate)
A document rating a property’s energy efficiency from A to G.

Escalation Clause
A clause allowing a buyer to automatically increase their offer up to a set limit in a bidding situation.

Exchange (Exchange of Contracts)
The point when the sale becomes legally binding in England and Wales.

Fixtures & Fittings
Fixtures are attached items; fittings are removable. These must be declared on the TA10 form.

Gazumping
When a seller accepts a higher offer from a new buyer after agreeing a deal with someone else (England/Wales).

Gazundering
When a buyer lowers their offer just before exchange, often to pressure the seller.

Ground Rent
A fee paid by leaseholders to the freeholder for use of the land.

Indemnity Insurance
A policy protecting against legal or paperwork issues such as missing building-regulations approval.

Leasehold
Ownership of a property for a fixed period (e.g., 99 or 125 years) — not the land it stands on.

Local Searches
Legal checks on planning history, road adoption, restrictions, flooding, and environmental risks.

Missives
The Scottish legal contract system; once concluded, the sale becomes binding.

Offer (Subject to Survey)
An offer that may change depending on the survey results.

Porting a Mortgage
Transferring your existing mortgage to a new property.

Premium Listing
An enhanced online listing (e.g., Rightmove Featured Property) that increases visibility.

Probate Property
A property sold after the owner’s death, requiring legal authority such as a Grant of Probate.

Redemption Statement
A document showing the exact amount needed to pay off an existing mortgage.

Restrictive Covenant
A binding rule limiting how a property can be used or altered.

RICS Survey
A survey carried out by a Chartered Surveyor from the Royal Institution of Chartered Surveyors.

Search Pack / Searches
Legal checks covering planning, drainage, environmental issues, and land contamination.

Service Charge
Payments by leaseholders for maintenance, insurance, and communal services.

Sole Agency Agreement
A contract giving one estate agent exclusive right to sell the property for a fixed period.

Stamp Duty Land Tax (SDLT)
Tax paid when buying property in England and Northern Ireland.

TA6 Form
The Property Information Form — detailed disclosure from the seller about the home.

TA10 Form
The Fittings and Contents Form — lists what stays and what is removed in the sale.

Title Deeds
Official documents proving ownership of a property.

Under Offer
A property with an accepted offer awaiting exchange of contracts.

Valuation Survey
A brief assessment for the lender to confirm the property’s value — not a full survey.


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