Conveyancing jargon buster

Buying or selling a home can involve legal words and phrases that you may not have come across before.

Our conveyancing jargon buster explains some of the most commonly used property terms in plain English, helping you understand the different stages of your transaction and the paperwork involved.

Whether you're a first-time buyer, moving to a new home or selling a property, we hope this A–Z guide will make the process a little easier to understand.

If you come across something you don't understand, don't hesitate to ask. Our conveyancing teams are always happy to explain.

A

Agreement in principle (AIP)

An indication from a mortgage lender of how much it might be prepared to lend you, based on an initial assessment of your financial circumstances. It is sometimes called a decision in principle and is not a guaranteed mortgage offer.

Anti-money laundering checks

Checks that solicitors are required to carry out to help prevent money laundering and other financial crime. These usually involve confirming your identity and, where appropriate, obtaining information about where the money being used in a property transaction has come from.

B

Bankruptcy search

A search carried out where required, usually on behalf of a mortgage lender, to check for relevant bankruptcy entries against a borrower. It helps the lender assess whether there are any bankruptcy-related issues affecting its security.

Bank transfer fee

A charge that may be made for transferring money electronically, for example when sending the purchase funds to the seller's solicitor on completion. Any applicable fee should be explained in your conveyancing quotation.

Buyer's searches

Checks carried out by the buyer's conveyancer to identify matters that could affect the property or its ownership. Common examples include local authority, drainage and water, and environmental searches. Additional searches, such as a coal mining search, may be recommended depending on the property's location and circumstances.

C

Chain

A series of linked property transactions where one sale or purchase depends on another. For example, someone selling their home may need the proceeds to purchase their next property. Delays in one transaction can affect everyone in the chain.

Coal mining search

A search used to identify whether a property may be affected by past, present or proposed coal mining activity. It may reveal information about mine workings, subsidence claims or other mining-related risks.

Completion date

The day the property legally changes hands. The buyer's solicitor transfers the purchase money to the seller's solicitor and, once completion is confirmed, the keys can normally be released.

The completion date is usually agreed when contracts are exchanged. Until then, proposed moving dates are not guaranteed, so it is sensible to avoid making non-refundable arrangements.

Completion statement

A financial statement prepared by your conveyancer showing the money required to complete your transaction. It will usually include the purchase price, any deposit already paid, legal fees, disbursements and relevant taxes, together with funds received from your mortgage lender.

For sellers, it will show the sale proceeds and deductions such as an outstanding mortgage.

Contract

The legal agreement between the buyer and seller setting out the terms of the property transaction. It normally includes details of the property, the agreed price and the parties involved. Once contracts have been exchanged, the agreement becomes legally binding.

Conveyancing

The legal process of transferring ownership of a property from one person to another. It includes checking ownership documents, carrying out searches and enquiries, preparing contracts, handling money and registering the new ownership with HM Land Registry.

D

Deposit

The money paid by the buyer on exchange of contracts as security for completing the purchase. This is traditionally 10% of the purchase price, although a lower amount can sometimes be agreed.

If the buyer fails to complete in breach of the contract, they may lose the deposit, become liable for the balance of the contractual deposit and face additional financial consequences.

The exchange deposit should not be confused with the deposit or savings a buyer contributes towards the overall purchase price when obtaining a mortgage.

Drainage search

A search that provides information about the water supply and drainage arrangements serving a property. It can help establish whether the property is connected to public sewers and water mains, and whether public sewers or drains may affect the land.

E

Easement

A legal right allowing someone to use another person's land for a particular purpose. Common examples include a right of way over a neighbouring property or a right to run drainage pipes beneath adjoining land.

Enquiries

Questions raised by the buyer's conveyancer after reviewing the property's title documents, searches and information supplied by the seller.

Enquiries help clarify matters that could affect the property or the buyer's future ownership. Some can be answered quickly, while others may require additional documents or information from third parties.

Environmental search

A search that provides information about potential environmental risks affecting a property. These may include contaminated land, flooding, ground stability or other matters that could affect its use, value or insurability.

Estate rentcharge

A payment that some owners of freehold properties must make towards the maintenance of communal areas or facilities on a housing development.

These charges may cover landscaped areas, private roads or shared facilities and can involve legal obligations that buyers should understand before purchasing.

Exchange of contracts

The stage when the buyer and seller become legally committed to the transaction.

The conveyancers exchange contracts once the necessary checks have been completed and both parties are ready to proceed. The completion date is normally agreed at this stage.

Before exchange, either party can usually withdraw from a conventional property transaction. After exchange, withdrawing or failing to complete can have serious financial consequences.

F

Fittings and Contents Form

A form completed by the seller identifying which items are included in the property sale and which will be removed.

It typically covers items such as carpets, curtains, light fittings, kitchen appliances and garden equipment. This helps avoid disagreements about what the buyer should expect to find at the property on completion.

Freehold

A form of ownership where you own the property and the land it stands on outright, rather than for a fixed number of years under a lease.

Freehold properties can still be subject to restrictions, rights affecting the land and, in some developments, estate maintenance charges.

G

Gifted deposit

Money given to a buyer, often by a parent or another family member, to help fund a property purchase.

Mortgage lenders usually require confirmation that the money is a genuine gift rather than a loan and that the person providing it will not acquire an interest in the property. Your conveyancer will also need to carry out relevant identity and source-of-funds checks.

Ground rent

A payment that may be required from a leaseholder under the terms of their lease, usually to the freeholder or landlord.

Ground rent is different from a service charge. Under legislation introduced in 2022, ground rents on most new qualifying long residential leases are restricted to a peppercorn, meaning no financial ground rent is payable. Older leases may still require payments.

I

Indemnity insurance

A type of insurance policy used to protect against certain financial risks associated with a property.

For example, a policy may sometimes be arranged where building regulation documentation is missing or a particular legal defect has been identified.

The cover depends on the terms of the policy and does not necessarily resolve the underlying issue or cover the cost of putting physical defects right.

L

Land Registry (HM Land Registry)

The government organisation responsible for maintaining the register of ownership of land and property in England and Wales.

Its records include information about registered owners, mortgages, certain rights and restrictions affecting properties.

Land Registry fee

A fee payable to HM Land Registry for certain services, including registering a change of ownership or a mortgage. The amount depends on the nature and value of the transaction and how the application is submitted.

Land Registry search

A search carried out by a conveyancer, often shortly before completion, to check relevant information held by HM Land Registry.

A priority search can also protect a buyer's or lender's application for registration for a specified period, provided the necessary requirements are met.

Leasehold

A form of property ownership where you have the right to occupy a property for a fixed number of years under a lease.

Leasehold ownership is common for flats. The lease sets out the rights and responsibilities of the leaseholder and landlord, including any ground rent, service charges, maintenance obligations and restrictions on the property's use.

The remaining length of the lease can affect the property's value and mortgageability.

You can find out more in our guide to buying a leasehold flat.

Local authority search

A search that provides information held by the local authority about the property.

It can reveal matters such as relevant planning permissions, building regulation records, road adoption status, planning restrictions and certain proposed road schemes.

It does not provide a complete picture of every development that could affect the surrounding area, so you should tell your conveyancer if you have particular concerns about neighbouring properties or future developments.

M

Management pack

A collection of information commonly required when buying or selling a leasehold property, usually provided by the freeholder, management company or managing agent.

It may include details of service charges, ground rent, building insurance, planned maintenance and rules affecting the property.

Obtaining this information can sometimes take time, which is one reason why sellers of leasehold properties may benefit from instructing a conveyancer early.

Memorandum of sale

A document normally prepared by the estate agent once an offer has been accepted.

It records important details such as the buyer, seller, agreed price and the conveyancers acting for each party. It is not itself a legally binding contract for the sale.

Mortgage

A loan secured against a property, usually provided by a bank or building society to help fund a purchase.

The lender has legal rights over the property as security for repayment. If the borrower fails to meet their mortgage obligations, the lender may ultimately be able to take possession and sell the property.

Mortgage deed

The legal document signed by a borrower to create the mortgage security over the property. It is used as part of the process of registering the lender's charge with HM Land Registry.

Mortgage offer

A formal offer from a mortgage lender confirming the amount it is prepared to lend and the conditions attached to the loan.

Your conveyancer will review the offer and ensure relevant legal requirements and lender conditions are satisfied before requesting the mortgage funds.

It is important not to exchange contracts until the necessary mortgage arrangements are in place and your conveyancer has confirmed that you can safely proceed.

O

Official copies of the title

Official documents issued by HM Land Registry containing information from the registered title of a property.

These normally include a title register, which records ownership and relevant legal matters, and a title plan showing the property's general boundaries.

They are used by conveyancers to check ownership and identify rights, restrictions or mortgages affecting the property.

P

Property Information Form

A form completed by the seller providing important information about the property.

It can include details of boundaries, disputes, alterations, guarantees, utilities and other matters that may affect the buyer's decision.

Sellers should answer the questions accurately and tell their conveyancer if any information changes. Incorrect or misleading information can have serious legal consequences.

Pre-sale conveyancing

The process of instructing a conveyancer and preparing some of the legal paperwork before a buyer has been found.

This can include completing property information forms, gathering important documents and identifying issues that might otherwise delay the transaction.

At Boys & Maughan, our Welcome Team can help sellers get organised before an offer is accepted.

Find out more about our pre-sale conveyancing service.

R

Redemption

The process of paying off a mortgage in full, usually when a property is sold or the mortgage is replaced with a new one.

Redemption figure

The amount needed to repay an outstanding mortgage on a particular date.

It can include the outstanding loan, accrued interest, administration fees and any early repayment charges that apply.

Registration

The process of recording a change of ownership or a new mortgage with HM Land Registry.

Following completion, the buyer's conveyancer will normally submit the application and supporting documents needed to update the register.

Restrictive covenant

A legal obligation that restricts how land or property can be used.

For example, a covenant might prohibit certain alterations, restrict the use of a property for business purposes or require consent before building an extension.

Restrictive covenants can continue to affect a property after ownership changes.

S

Searches

Checks carried out by the buyer's conveyancer to investigate matters that could affect the property.

They commonly include local authority, environmental, and drainage and water searches, although additional searches may be necessary depending on the property's location and circumstances.

Searches do not replace a physical survey of the building.

SDLT (Stamp Duty Land Tax)

A tax that may be payable when buying property or land in England or Northern Ireland.

The amount depends on factors including the purchase price, the buyer's circumstances and whether any reliefs or higher rates apply.

The rules and thresholds can change, so you should check the latest government guidance on Stamp Duty Land Tax.

Service charge

A payment made by a leaseholder towards the costs of maintaining, repairing, managing or insuring a building and its shared facilities.

Service charges can vary from year to year and may include contributions towards future major works or maintenance.

Shared ownership

A scheme that allows eligible buyers to purchase a share of a property and usually pay rent on the remaining share owned by a housing association or another provider.

Shared ownership properties are generally leasehold and may involve service charges and other conditions. Buyers may have the opportunity to purchase additional shares over time, a process known as staircasing.

Sold subject to contract (SSTC)

An expression used when a seller has accepted an offer but contracts have not yet been exchanged.

The sale has been agreed in principle but is not normally legally binding at this stage.

Source of funds

Information and evidence showing where the money being used for a property transaction has come from.

Your conveyancer may ask for bank statements or other documents to verify savings, gifts, inheritance, proceeds from another property sale or other sources of money.

These checks are an important part of solicitors' anti-money laundering obligations.

Survey

An inspection of a property's physical condition carried out by a qualified surveyor.

A survey can help identify defects, maintenance issues and areas that may require further investigation before you commit to buying.

The Royal Institution of Chartered Surveyors (RICS) offers three main levels of home survey, known as Level 1, Level 2 and Level 3, with different degrees of detail.

A mortgage lender's valuation is not the same as a survey and should not be relied upon as a full assessment of the property's condition.

You can find out more about the different types of home survey on the RICS website.

T

Title deeds

Documents that provide evidence of ownership and other legal matters affecting a property.

For registered properties, ownership information is now generally held electronically by HM Land Registry, rather than relying on a bundle of original paper deeds.

Older documents may still be important, particularly where a property has not been registered or where they contain additional information about rights and restrictions.

Title plan

A plan held by HM Land Registry showing the location and general boundaries of a registered property.

It does not normally establish the precise position of every legal boundary.

Transfer deed

A legal document used to transfer ownership of a property from the seller to the buyer.

Following completion, the transfer deed is normally submitted to HM Land Registry as part of the application to register the new owner.

Transfer of equity

The legal process of changing the ownership of a property by adding or removing one or more owners, without necessarily selling the whole property.

For example, this may happen when a couple decides to put a property into joint names or when one person takes over ownership following a separation.

Mortgage lender consent and tax considerations may need to be addressed.

Need help buying or selling a property?

Understanding the terminology is just one part of moving home. At Boys & Maughan, our experienced residential conveyancing teams are here to guide you through the process, explain the legal work involved and keep you informed.

Whether you're buying your first home, selling a property or preparing for your next move, our Welcome Team will be pleased to help.

Email: welcome@boysandmaughan.co.uk

Telephone: 01843 234000

You can also find out more about our residential conveyancing services or obtain a conveyancing quotation online.

Our aim is to make moving home as straightforward as possible, with clear advice and personal support whenever you need it.