Conveyancing glossary

A

Anti money laundering checks

Checks the law requires your conveyancer to carry out before acting for you. They confirm who you are and where the money for your move comes from. Expect to be asked for ID and bank statements.

B

Boundary

The line where one property ends and the next begins. The Land Registry plan usually shows only the general position, not the exact line, so fences and hedges on the ground count for more than people expect.

Building regulations

Rules that set safety and quality standards for building work, such as extensions, loft conversions and new windows. A buyer's conveyancer will ask for the sign-off certificates for any work done.

C

Chain

A line of linked sales and purchases, where each move depends on the ones either side of it. Read what happens when a chain breaks.

Completion

The day the money is paid and the property changes hands. It's the day you get the keys. See exchange vs completion.

Completion statement

A breakdown from your conveyancer of all the money coming in and going out on completion. It shows exactly how much you need to send, or how much you'll receive.

Conveyancer

The lawyer who handles the legal side of buying or selling a property. A conveyancer can be a licensed conveyancer or a solicitor.

D

Deposit

Two things share this name. Your mortgage deposit is the part of the price you pay from your own money. The exchange deposit is the sum the buyer pays when contracts are exchanged, which they can lose if they pull out afterwards.

Disbursements

Costs your conveyancer pays to other organisations on your behalf, such as search fees and Land Registry fees. They're separate from your conveyancer's own fee.

E

Easement

A right to use someone else's land in a particular way. A right of way along a shared path, or a right for your drains to run under next door's garden, are both easements.

Enquiries

Questions the buyer's conveyancer asks the seller's side about anything unclear in the contract, title or searches. This stage often takes the longest. See how long conveyancing takes.

Exchange of contracts

The moment the buyer's and seller's conveyancers swap signed contracts, usually by phone. From then on the move is legally binding and the completion date is fixed. See exchange vs completion.

F

Freehold

Owning the building and the land it stands on outright, with no time limit. Most houses are freehold. See leasehold vs freehold.

G

Gazumping

When a seller who has accepted your offer accepts a higher one from someone else before exchange. It's frustrating, but it isn't illegal.

Gazundering

The reverse of gazumping. The buyer lowers their offer shortly before exchange, often when the seller has little room to say no.

Ground rent

A yearly payment a leaseholder makes to the freeholder, set out in the lease. Many newer leases have no ground rent, or a token amount. See leasehold vs freehold.

I

Indemnity insurance

A one-off insurance policy that covers a specific legal problem, such as a missing building regulations certificate. It's often a quicker fix than putting the problem right before exchange.

L

Land Registry

HM Land Registry is the government body that keeps the official register of who owns land and property in England and Wales. After completion, the buyer's conveyancer registers the new owner with them.

Lease extension

Adding years to a lease by agreement with the freeholder, or by using a legal right to extend. A short lease can make a flat harder to sell or mortgage, so extending it can protect its value.

Leasehold

Owning a property for a fixed number of years under a lease, while someone else owns the freehold. Most flats are leasehold. See leasehold vs freehold.

Licensed conveyancer

A lawyer who specialises in property and is qualified and regulated by the Council for Licensed Conveyancers. Koala is regulated by the Council for Licensed Conveyancers.

Local authority search

A search of the council's registers covering things like planning decisions, building control, road schemes and whether the road is publicly maintained. Some councils reply in days, others take weeks. See conveyancing searches.

M

Management pack

Information about a leasehold building from the freeholder or managing agent. It covers service charges, ground rent, planned works and building insurance, and the seller usually pays for it.

Mortgage in principle

A statement from a lender saying roughly how much they'd be willing to lend you, based on basic checks. It isn't a guarantee, but it shows sellers you're serious. See the first-time buyer checklist.

Mortgage offer

The lender's formal offer to lend on a specific property, issued after they've valued it. You need it before you can exchange.

P

Probate

The legal authority to deal with the property and money of someone who has died. When a property is sold by the people handling an estate, contracts can't be exchanged until probate has been granted.

R

Redemption statement

A statement from your lender showing exactly how much it will take to pay off your mortgage on a given date. Your conveyancer uses it to pay off your mortgage on completion when you sell.

Report on title

Your conveyancer's written summary of what they've found about the property you're buying: the title, the searches, the enquiries and anything you should know before you sign.

Restrictive covenant

A rule in the title that limits what you can do with the property, such as not running a business from it or not building a second house in the garden. Covenants can stay in force long after they were written.

S

Searches

Checks the buyer's conveyancer orders from the council, the water company and others, to find out things the seller might not know about. See conveyancing searches.

Service charge

Your share of the cost of looking after a leasehold building, such as cleaning, repairs and buildings insurance. It's paid to the freeholder or managing agent and can go up or down each year.

Share of freehold

When the flat owners in a building own the freehold together, usually through a company. You still have a lease on your flat, but you and your neighbours control the building.

Source of funds

Where the money for your purchase comes from, such as savings, a gift from family or the sale of another property. Your conveyancer must check it, so expect to share bank statements.

Stamp Duty Land Tax

A tax on buying property in England, paid to HMRC. Your conveyancer usually sends the return and the payment for you after completion. In Wales, Land Transaction Tax applies instead.

Survey

An inspection of the property's condition by a surveyor, arranged by the buyer. It's different from the lender's valuation, which only checks the property is worth what they're lending.

T

TA10

The Fittings and Contents Form. The seller fills it in to say what's staying and what's going, from carpets and curtains to the garden shed.

TA6

The Property Information Form. The seller answers questions about boundaries, disputes, alterations, guarantees and more. Honest, complete answers save weeks of follow-up questions.

Title

The legal ownership of a property. The title register at the Land Registry shows who owns it, any mortgages on it, and any rights or rules that come with it.

Title deeds

The paper documents that used to prove ownership. Most properties are now registered at the Land Registry, but older deeds can still hold useful details, so it's worth keeping them.

Title plan

The Land Registry map that shows the property outlined in red. It shows the general boundaries rather than the exact line.

TR1

The transfer deed that passes ownership of the whole of a registered property from the seller to the buyer. The seller signs it before completion, and the buyer's conveyancer sends it to the Land Registry afterwards.