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Glossary of Frequently Used Terms in Conveyancing (2)

On March 9, 2016

Glossary of Frequently Used Terms in Conveyancing (2)

Exchange of contracts – is when the buyer and the seller sign and exchange the contract and the deposit is paid. At this point both parties are legally bound to the transaction.

Fixture, Fittings and Contents form – this form sets out what parts of the property are included in the sale and must be completed and signed off by the buyer before purchase.

Freehold – a freehold property involves a permanent change in ownership of land or a building

Ground rent –usually an annual amount which is paid if you buy a leasehold property

HM Land Registry – a government body that deals with ownership of property and land throughout England and Wales, but not Scotland and Northern Ireland.

Leasehold – a leasehold property is one where a party buys the right to occupy land or a building for a given length of time.

Local authority searches – these searches are conducted during the conveyancing process and are designed to protect you from council plans that may affect your property once you’ve moved in.

Property Information Form – sellers are required to fill this form in and return it to their conveyancer. It asks questions about boundaries, disputes, services, relationships with neighbours, legal rights, restrictions and other important information. Failure to provide correct information is an offence.

Stamp duty – all buyers pay stamp duty based on the purchase price of the property. The money is paid to HMRC.

STC – The abbreviation for Sold Subject to Contract.

Title deeds – title deeds provide proof of ownership on a particular property. Mortgage lenders will hold onto title deeds as they legally own the property until the mortgage is paid back.

Transfer deed – a document that legally transfers your property into the name of the buyer. It must be signed by you in the presence of a witness.

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