When either buying or selling a property the legal aspects will be carried out by either a conveyancer or a conveyancing solicitor. Clearly, as in any specialist field, there is plenty of jargon used that could easily confuse the uninitiated. In this guide we will take a look at what a conveyancer does and explain some of the more common terms used.
What is a conveyancer?
There are two types of legal professional who can deal with the legal aspects of a property transaction: A conveyancer and a conveyancing solicitor. A conveyancer is someone who has trained and is registered solely in property law. A conveyancing solicitor is someone who has trained in all aspects of the law but who specialises in Property law. They will both offer pretty much the same service.
Common conveyancing terms
- Completion: This is when the transaction is finalised, all the monies are paid, all accounts settled and the keys and ownership of the property are transferred to the new owner
- Contract: This will define the terms and conditions of the sale as well as the completion date. Once contracts have been exchanged the sale is legally binding.
- Disbursement: These are out-of-pocket expenses that your conveyancer needs to pay as part of the conveyancing process for things like searches and registering details with the land registry. When you get your quote from the conveyancer it will highlight their standard fees and any disbursements. The disbursements will need to be paid upfront, the general fees are paid on completion.
- Equity: The equity in the property is the difference between the amount of money that the property is worth compared to the outstanding mortgage.
- Freehold: A freehold property is one where the owner owns the property and the land upon which it sits.
- Gazumping: if, after an offer has been accepted the seller accepts a higher offer form another potential buyer then the original buyer has been gazumped.
- Land Registry: This is the Government agency which holds the records of all properties in England and Wales.
- Leasehold: Leasehold properties are where the land upon which a property is built is owned by someone else. In a leasehold property the ownership is really only temporary, although this could be decades or even centuries long. Any leaseholder might have to pay service charges to the landlord who owns the land.
- Mortgage deed: This is a legal document which describes the terms and conditions of the mortgage, but, more importantly, gives the mortgage lender legal rights to the property
- Redemption statement: If a mortgage is to be paid off as part of a sale, the redemptions statement is a written document from the lender detailing how much needs to be paid back.
- Searches: There are a few standard searches that a conveyancer will carry out. These are there to highlight any issues such as planning permissions that might affect the property. The searches also cover things like flood risk, ground contamination, who is responsible for the drains and also if there is a liability on the property to support repairs to the local church (Chancel Repair Liability)
- Title: Once the property has been sold the new owner holds the title to the property which clearly states that they are the new owner. This is stored electronically with the Land Registry
- Transfer Deed: This is a document that allows the owner of a property to legally transfer the ownership of their property to the new owner. This is sent to the land registry who will then change the title deed.
Although there are some strange terms in a property transaction, the conveyancer will be more than happy to explain them in detail if required.
Thinking of buying or selling your home? Why not have a chat with our local property experts. We have over 30 sales and lettings offices across the Midlands, and the local property knowledge that comes with over 20 years of being in the property industry. Find your nearest Newton Fallowell office here, come say hello, we would love to help you sell or source your new home.
