In the property industry in the United Kingdom, many conveyancing terms are used, and most people, especially new buyers and sellers find many of the terms difficult to understand. Keeping this in mind, we have explained some of the common terms used in this industry.
A contract is the most important document in the conveyancing process. It contains all the legal agreements that specify the details of the property to be purchased or sold. In other words, it explains the conditions of the transaction. The conveyancer of both buyer and seller prepare the draft contract and give a copy to the counterpart to evaluate. The contract, once signed, commits both the parties to the transaction and is legally binding.
The agreement is another conveyancing term for the contract.
An auction is a place where a land is sold or purchased. In this public sale, the bidder that places the highest bidder becomes the next owner of the property. Contracts are exchanged once a bidder wins the auction.
Conveyancers are responsible for conducting research to find out if a buyer had faced bankruptcy in the past. It will also help him find out if the buyer is about to go bankrupt.
Boundaries, as the name suggests, refer to the extent of a land. They are marked by hedging, walls or fencing, but are not necessarily shown on the deeds.
Chain refers to the sequence of a lot of buyers and sellers, and they depend upon the proceeding purchase. Most sellers may be buyers at the same time. However, sellers can’t buy another property unless they have sold the property they had. This creates a chain of sellers and buyers that depend on each other for the transactions.
House, land or any property is called chain free when it doesn’t depend on the sale or purchase of another property is called a chain free property.
It’s the date on which the property transaction comes to an end, and the legal ownership goes to the buyer.
Completion settlement is a financial statement that contains the details of all the financial transactions. Usually, it includes the fees of the conveyancer as well.
Conditions of sale
In conveyancing terms, conditions of sale refer to the terms that both the parties agree. The Law Society is the authority that sets conditions for the sale of a residential property. While the Law Society sets standard conditions, special conditions are set by the conveyancer or solicitor.
Conveyancers are solicitors or professionals who are responsible for managing all the legal matters related to the property transactions.
Also called the title deeds, a deed is a legal document that has the information about the ownership of a land or property.
Land Registry is short for Her Majesty’s Land Registry, which is a government authority that is responsible for maintaining the record of lands and ownership.
Searches are done by the conveyancer to find out about information relating to the property in the transaction.
In the UK, Stamp Duty is a tax that every buyer is bound to pay when buying a land of a value exceeding £125,000.
Survey is a structural report about a property, such as a house or land that is on the market for sale. This report is prepared by an expert building surveyor and gives information about the structure of the property in addition to helping with the evaluation.
This formal registry document confirms the transfer of ownership title of the property.
If you are going to buy or sell your property with the help of a conveyancer, understanding these terms is a good idea, as this will help you go through the process with ease.