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FAQs Why do some properties marked SOLD STC still appear on the site? In England and Wales, a property sale is not legally binding until contracts have been exchanged. In other words, even if an offer has been made and is accepted, the seller may entertain higher offers from other bidders. So, we list the property as "Sold, Subject to Contract" when an offer has been accepted, but contracts have not been exchanged. Many people use our site to gauge property prices in their area, so properties with SOLD STC flags can be a useful guide to the strength of the market. Do I need a "For Sale" sign? To cover your local and non-internet market. Still one of the most effective means of attracting local buyers is a "for-sale" sign outside the door. It's part of your whole marketing package and you will almost certainly miss out on potential buyers if you don't have one. How do I prepare my house for sale? There are a number of simple steps every homeowner needs to take in order to make the best impression when buyers come to view. Once you have attracted interest in your home from advertising, the viewing becomes one of the most critical points at which a sale can stand or fall. Glossary / Jargon Advance The loan Assignment The document which transfers a lease from seller to buyer. Bridging loan Short term bank loan used to bridge the gap if there is a delay in getting finance in place to complete a purchase by a particular date. Collateral Property or other asset used as security for a loan. Completion When transfer of ownership takes place and the purchaser gets the keys Contract The legal agreement to bind seller and purchaser to the sale of the property Conversion When a property has been divided into flats Transfer The document which transfers the ownership of freehold registered property, from seller to buyer. Conveyancing The legal process of buying and selling property Covenants These agreements which are contained in the title deeds which might restrict or prohibit certain activities on the property, e.g. the running of a business, or may require certain action to be taken. e.g. an obligation to build a fence along a particular boundary and are called restrictive covenants or positive covenants . Such agreements are often passed on to one owner from the other and must be checked during the conveyancing transaction to ensure that a buyer is aware of any matters which might effect his decision to purchase the property. Disbursements The fees that your solicitor has to pay - such as Stamp Duty, Land Registry and Search Fees which will be added to your bill. Equity The difference between the value of a property and the amount of the mortgage and other loans outstanding against it. Exchange of Contracts The point at which both the buyer and seller are become legally bound to buy and sell and when a deposit is paid. Final Search A search made between exchange of contracts and completion against both the seller and the buyer to check that the position has not changed since exchange of contract, that second mortgages have not been taken out or that either party has become bankrupt. Flying Freehold A situation when part of a property, e.g. a first floor, may overhang the property of another person where the other person occupies the underlying space. Freehold You own the property and the land that it is built on. Gazumping Where a seller accepts an offer and then agrees to sell the house for a higher price to someone else. Ground Rent An annual charge payable by leaseholders to the owner of the freehold. Initial Additional Payment The interest calculated during the year in which the mortgage/loan is given as from the date of completion to 31 st December. Therefore, payments that are calculated on a calendar monthly basis will not include all of the first year s interest. To ensure that no interest is outstanding by the end of the first year you will be asked to make a higher first monthly payment. This is usually known as Accrued Interest or Initial Interest. Insurance Guarantee A policy arranged by the lender with an insurance company to provide additional security where a loan exceeds a certain percentage of the valuation or purchase price (whichever the lower). The single premium payable can be added to the loan in most cases. Also known as a Mortgage Indemnity Guarantee or High Loan to Value Fee. Land Registry Fee A fee you pay to register your ownership of property with the Land Registry. Leasehold Where you own a property but not the land it is built on (when the lease runs out the property reverts to the ownership of the freeholder). Lessee The owner of the lease. Lessor The person who grants the lease. Local Search A list of queries sent to the Local Authority to check e.g. if the Council are responsible for road maintenance and drainage, tree preservation orders, planning consents. MIRAS Stands for Mortgage Interest Relief at Source and is tax relief towards your monthly interest payment to your lender however, MIRAS has been withdrawn by the government from April 2000. Mortgage A loan with a property as security. Mortgagee The lender (e.g. building society or bank). Purpose built Usually refers to flats that were built as flats and are not conversions. Redemption When you finally pay off your mortgage. Requisition on Title A final enquiry of the seller s solicitors on matters of title e.g. outstanding mortgages. Stamp Duty A government tax charged when the purchase price exceeds a certain level. There are bands of tax applied relative to the price. Subject to Contract (STC) The wording attached to an agreement or offer (prior to exchange of contracts) that allows the buyer or seller to withdraw from the deal without incurring a penalty. Tenure The type of ownership of a property e.g. freehold, leasehold. Term The number of years over which a mortgage loan is arranged. At the end of the loan will be repaid. Title Deeds Registered land with registered land the title deeds consist of a land certificate or charge certificate that contains a short description of the property and full details of the owners name and address and any mortgages affecting the property. Office copy entries of the certificates can be obtained to prove ownership of the property. Unregistered land the title deeds consist of conveyances, mortgages, grants of probate and search certificates. The dates of these documents must go back in time for at least fifteen years in order to prove a good title to a property. An abstract of title consists of copies of such deeds or documents necessary to prove ownership of a property. Vendor The seller. |
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