There is more than enough to think about when selling your home. From presentation to pricing, arranging viewings, reading contracts and weighing up offers, it can be a confusing time. Understanding new terminology is an important part of the selling process, ensuring that you can communicate accurately and effectively with your agents and buyers. To make sure you are fully versed in all-things property, here is a quick guide to 60 common terms, phrases and jargon used when selling homes.
1. Agents
Commonly referred to as “estate agents” – the people responsible for selling your property.
2. Agreement in Principle
An estimate from a broker of how much money your buyer can borrow to purchase a property.
3. Appraisal
Otherwise known as a “valuation” when an estate agent will provide their advice on the financial value of your property.
4. Best and Final
When your property has more than one interested party, “best and final offers” might be sought with a specific deadline – for the highest and final offer buyers are willing to make.
5. Bridging Loan
A loan (often from major banks or specialist lenders) allowing buyers to purchase a property before they have sold their current home.
6. Broker
The representative who manages mortgage applications.
7. Building Survey
An official report by a qualified professional into the structural condition of a property, often called a “full structural survey”.
8. Chain
Referring to a situation when there is a number of individuals waiting to either buy or sell their property. As a rule, the longer the chain, the more likelihood problems may occur.
9. Commonhold
Sometimes referred to as a “commonhold association” – an alternative to leasehold agreements, usually found in multi-occupancy buildings with shared responsibilities for common services.
10. Completion Date
The date when contracts and transactions have all been completed and ownership formally passes from the vendor to the buyer and keys are exchanged.
11. Contract
A specific term for a legally binding agreement (usually drafted by a solicitor or conveyancer) setting out the terms agreed by both parties involved in the purchase.
12. Conveyancer
A solicitor who will help with the transfer of the legal title of a house from one person to another.
13. Covenant
Conditions usually found on leasehold properties, that are passed onto new owners. Restrictive covenants prevent the owner of a property from doing specific things (such as renting out the property, for instance).
14. Deeds
Otherwise referred to as “title deeds” – documents that specify the legal ownership of a property and associated land. Copies or originals are usually held by solicitors or mortgage lenders.
15. Deposit
The money a buyer sets against a property purchase – a percentage of the full property price, with the rest of the amount lent by a mortgage provider.
16. Disbursements
A term used by solicitors or conveyancers for charges separate to standard fees, including things such as stamp duty, search fees, chancel insurance policies or land registry fees.
17. Downval
A property valuation that is lower than required for a buyer’s mortgage application.
18. Draft Contract
The first contract drawn-up as part of the property sale process, which can be altered by either party (on agreement) as required.
19. Easement
The right to use or enter someone else’s land or property without any claim to ownership. This is most commonly seen with private rights of way.
20. EPC
An Energy Performance Certificate (EPC) which demonstrates the energy efficiency and environmental impact of a property, giving a rough indication of how much energy bills might cost.
21. Equity
The value of how much of your house you own. This amount is likely to increase over time as a property owner pays off their mortgage – once fully paid off, you will have 100% equity in your property.
22. Exchange of Contracts
The point at which contracts are signed and both vendor and purchaser are fully committed to the property sale. Before this moment, either party can pull out of the transaction.
23. First Time Buyer
A person who has never owned their own property. They are most likely to be living with family or in rented accommodation, allowing for a relatively simple purchase process.
24. Fixtures and Fittings
Non-structural items (such as lighting, carpets, kitchen and bathroom furniture) specified as included in the sale.
25. For Sale By Owner
Occasionally shortened as FSBO, referring to when an owner decides to sell their home themselves, without the assistance of an estate agent.
26. Freehold
The legal term for when you have permanent ownership of the land that a property sits on.
27. Freeholder
Referring to the person that owns the land that a property sits on.
28. Gazumping
When a buyer is out-bid on a property by another prospective purchaser.
29. Gazundering
When a buyer reduces their (previously accepted) offer on a property at a late stage in the process.
30. Ground Rent
A fee paid to a freeholder (the person that owns the land a property sits on), usually paid by the leaseholder.
31. Guide price
The term used by estate agents and vendors to give an indication of the price sought for a property. Offers may eventually be under or over this amount.
32. HMO
A “house in multiple occupation” which is rented out by at least three people from separate households, who share facilities such as bathrooms and kitchens.
33. Leasehold
Most commonly found with flats, where the land a property sits on is owned by someone else (the freeholder).
34. Lister or Valuer
An estate agent who will provide a valuation for your property before it’s listed on the open market.
35. LTV
“Loan to Value” – the amount of loan a bank will provide to a buyer, up to the value of the property being purchased.
36. Mortgage
The loan a buyer receives to purchase a property (usually from a bank), paid back over time with interest. The loan is “secured” against the value of the property until it is paid off in full.
37. Offer
The amount of money a prospective buyer will pay for your home. Offers are usually communicated by estate agents in written form, but until contracts are exchanged, offers are not legally binding.
38. OIEO
“Offers in excess of” (or “offers over”) – a term used by vendors that seeking more than the advertised price of a property.
39. Open House
Alternatively called “open viewings” – a method allowing multiple interested parties to view the property at the same time.
40. Open Market Value
The amount a property is likely to sell for, assuming general market conditions with no special factors limiting the sale.
41. Part Exchange
When another property is taken in part payment, usually a new-build home.
42. Peppercorn Rent
A term for ground rent or service charges on leasehold properties that is usually a very small amount but needs to be in place for the lease to be valid.
43. Preliminary Enquiries
When a sales memorandum has been issued, and the purchaser’s solicitor will send the seller’s solicitor initial questions about the property.
44. Probate
A property sale due to a death, usually handled by solicitors or close family members.
45. Retention
A broker retains part of the mortgage amount until specific repair works have been undertaken.
46. Reval
Short for “revaluing” – involving re-instructing a surveyor after a “downval” (see above) or re-mortgaging your property.
47. Sale Agreed
When a seller has verbally agreed to an offer on their property.
48. Sealed Bids
The same as “Best and Final Offers” when buyers are asked for their final bid by a set deadline.
49. Searches
Checks usually undertaken by solicitors on local authority records for issues such as planning applications, chancel charges and utilities.
50. Shared Ownership
When a percentage of your property ownership is retained, most usually by builders or housing associations, with rent paid for this share.
51. Sole Agent
A contractual term, meaning that there’s only one estate agency with rights to sell your property.
52. Solicitor
A qualified legal professional who will handle all the legal aspects of selling your property.
53. SSTC
Sold Subject to Contract – largely the same as “under offer” meaning that the seller has accepted an offer (pending exchange of contracts).
54. Stamp Duty
Tax paid to the government, based on the purchase price of a property.
55. STPP
Subject to planning permission – agents may advertise your property with the disclaimer of STPP if an extension is possible, but without guaranteed permission.
56. Surveyor
A qualified expert specialising in examining and reporting on potential structural issues with properties.
57. Tender
When a seller invites written offers for their property, usually with a set deadline.
58. Title
The legal owner of a property, often listed on title deeds.
59. Under Offer
When an offer has been made (and accepted) on your property, but the details might not be firmed up yet.
60. Vendor
You! The person selling a property.
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