Read our jargon-busting glossary to understand what all these head-scratching words mean.
Whether you’re buying or selling a property, there is no shortage of words you’ve probably never heard before.
In this guide, we’ll untangle the jargon jungle and explain what everything means in plain English. Capiche?
Another way of describing your mortgage loan — the money you borrow from a bank or building society to buy your home.
An event where you can sell your property to the highest bidder. Ideal for quirky, unusual properties, and those in disrepair.
Insurance to cover structural damage to the property; for example, from storms or floods.
A temporary loan which helps you secure a new property before your current one is sold.
The other buyers and sellers whose property transactions your move depends on.
The legal side of buying and selling a home. A conveyancer is a residential property lawyer, whereas a solicitor will cover a wider area of legal practice.
A buyer who can finance their property move without having to borrow money.
The last step in your property transaction, when legal documents have been transferred between solicitors and the purchase price has been paid.
A legal condition detailed in the lease or title deeds which the owner, and future owners, must comply with.
The legal documents which outline the ownership of the property and land.
The fees your solicitor charges which are separate from the standard legal fees; examples include Local Authority searches and Land Registry charges.
The initial contract for the property transaction, subject to later alterations.
Your own thorough analysis of a property purchase before you buy a home.
Money held by a third party until the buyer and seller meet their obligations.
An Energy Performance Certificate (EPC) details how energy efficient a property is. It’s a legal requirement to have an EPC when a property is sold, and they are valid for 10 years.
The difference between the amount you owe on your mortgage and the value of your home.
The exchange of contracts is the moment your property sale becomes legally binding.
This means offers are invited on a property, but only at the advertised price.
The freeholder is the person who owns the property, including the land it sits on.
If you’ve had an offer accepted, but someone makes a better offer before you exchange contracts and the seller accepts, you’ve been gazumped.
If you’re selling a home, and the buyer reduces their offer for no good reason before the exchange of contracts, you’ve been gazundered.
The figure marketed by the estate agent for the property’s sale, otherwise known as the asking price.
An annual fee received by the freeholder for a leasehold property.
The most common type of property survey — sometimes known as the Level 2 survey — which highlights major and minor defects in the home.
You formally ‘instruct’ an estate agent to market your property, just as you instruct a solicitor to work on your behalf.
A charge you pay for the privilege of borrowing usually reflected as a percentage of the outstanding loan.
A mortgage that you are jointly responsible for repaying alongside another person.
Every home needs a pair...
The governmental organisation that records details for all registered properties in England and Wales.
Referring to properties owned by a leaseholder, who owns the defined premises for a time-limited period and pays the freeholder a service charge and ground rent.
The landlord (a person or organisation) that grants the lease. As the leaseholder, you are the lessee, or ‘tenant’.
Loan to value
The ratio in terms of the amount you borrow as a home loan relative to the value of the property.
Mortgage in principle
A provisional mortgage agreed by the lender which states the agreed amount you can borrow, subject to final approval.
The official confirmation from your lender that you can borrow a specified amount.
Where the value of your property is less than the amount owed on the loan.
A property that has recently been added by an estate agent to their sales list.
No onward chain
A chain-free property, meaning the sale doesn’t depend upon the seller buying another property.
This means offers are invited over the advertised guide price. It’s sometimes abbreviated to OIEO (offers in excess of). You may also see OIRO (offers in the region of).
Developers sometimes offer part exchange (PX) schemes which allow you to trade in your current property as part-payment for a new build home.
‘Price on application’, abbreviated to POA, is used to advertise properties where the seller wants to keep the asking price secret.
An enhanced advert offered by property search sites like Rightmove for an extra fee.
A probate property is one sold by the beneficiary of the deceased owner’s estate once they have been granted legal permission.
You will need to get quotes from the likes of removal companies, solicitors and surveyors during the moving process.
The mortgage lender can repossess the property if the owner defaults on repayments.
When the lender withholds part of a mortgage loan until repair work has been completed.
Your solicitor carries out ‘searches’, or checks, for Local Authority records which show planning applications, environmental issues and other restrictions.
A shared ownership scheme is where you buy a portion of the home and pay rent on the remaining share.
This stands for ‘sold subject to contract’, which means an offer has been accepted but the sale is not yet legally binding.
Stamp Duty, officially known as Stamp Duty Land Tax, is a tax you pay in England or Northern Ireland when you buy a property for more than £125,000.
Your survey is a visual inspection carried out by a qualified surveyor, who will produce a report highlighting any defects with the property before you exchange.
The tender process is where the seller requests written offers on a property, with a specified closing date.
Tenure refers to various ways you can own your property, such as freehold, leasehold or share of freehold.
The title is usually attached to the title deeds, and confirms the identity of the legal owner. The Land Registry stores copies of the title deeds.
A property is ‘under offer’ when the seller has accepted a bid, but before the exchange of contracts has taken place. See ‘sold STC’.
The process a lender uses to determine the risk attached to a mortgage application.
The valuation is where an estate agent visits your property to assess the value, after which you decide whether to instruct them to manage the sale.
The vendor is simply the legal word used to describe the seller.
A formal written order used by a court, for example to begin legal proceedings on the transfer of a property’s ownership.
Okay, we’re scraping the barrel here... But there’s a lot of paperwork involved in property sales, so Xerox printers are your solicitor’s friend!
Your first words you utter on completion day when you realise the home is all yours.
That feeling of satisfaction when you finally lean back on the sofa as a proud new homeowner.
Get the latest property news direct to your inbox.
Nested puts homeowners in control of their sale. Our agents provide you with smarter insights so you achieve the best price for your home on your timeframe. When you’ve found your new home, you have the power to move chain free, while we take care of your sale. Our buying agent will even negotiate up to 5% saving on your new home, so you get more home for your money.
If you’re interested in selling smarter, get in touch today. Nested.com - The modern way to move.