We’ve taken a look at ABC guide to estate agent Jargon, now we’ve gone a little more technical. Here is a list of words and meanings you might come across when selling and buying a house.
AML -‘Anti-Money laundering.’ Solicitors are obliged to carry out anti-money laundering checks on all clients in order to comply with the 2017 Money Laundering regulations. This requires photo ID & proof of address dated within the past 3 months, an electronic ID check will also be carried out.
Bankruptcy Search- A Bankruptcy Search is carried out on all purchase transactions against the buyers. This is done to protect the Lender against any impending bankruptcy or insolvency.
Certificate of Title- The Certificate of Title is submitted to the Lender shortly before the exchange and completion. The certificate is required by the bank, as confirmation from the buyer’s solicitor that the property is good and marketable. The lender required this information before they will agree to send the mortgage funds.
Completion- On the day of completion, the buyer’s solicitor will send the purchase funds to the seller’s solicitor. Once received, the seller must vacate the property and hand over the keys to the new owner. The seller’s solicitor will then redeem any mortgages on the property and send the remaining balance to their client.
Contract- This document is required on both sale and purchases and is used by the solicitor on both sides to make the transaction legally binding. This document is signed shortly before the exchange and must be signed by all parties to the contract. The original is required to be sent via post. Once exchanged, each solicitor will send the other the original contract signed by their respective clients.
Conveyance- Some title documents refer to another document called a conveyance. Prior to compulsory registration, the details of property owners were found on the conveyance. These documents often contain covenants and easements, which continue to run with the land and which affect present-day owners.
Draft Contract Pack- The Draft Contract Pack is sent by the seller’s solicitor to the buyer’s solicitor. It includes the draft contracts, Land registry Office Copes, protocol forms and any other documentation provided by the seller such as gas safety, electrical or FENSA certificates.
Enquiries- Enquiries are raised by the buyer’s solicitor once they have reviewed the title, protocols, searches and any other documents provided by the seller. The seller’s solicitor will then request replies from the seller and once received, will confirm the same to the buyer’s solicitor.
Exchange – On the day contracts are exchanged, the transaction becomes legally binding and you must complete on the agreed date as per the contract.
Lender – If the buyer is purchasing with the aid of a mortgage, the bank they are using is known as the Lender.
Memorandum of Sale- The Memorandum of Sale is provided to both solicitors by the estate agent. It includes details of the buyer, the seller, who is acting on each side, the purchase price and any other information the agent thinks may be relevant.
Mortgage Deed – When purchasing with a mortgage, a Mortgage Deed must be signed prior to exchange and this is also submitted to the Land Registry to register the charge against the Title.
Office Copies- These are the Land Registry Title documents including the Title Register, Title Plan and any other copy filled documentation such as conveyances, Deeds of Easement & Deeds of Grant.
OS1- This is the Land Registry Priority Search. A Priority Search is carried out shortly before exchange and completion of purchase to ensure no charges can be made to the title prior to transferring the ownership.
Post Completion- Once the transaction has completed, the buyers solicitor is required to carry out post completion formalities. This includes submitting the SDLT and registering the new ownership and mortgage at Land Registry.
Protocol Forms- Protocol forms include the property information, fittings and contents and leasehold information forms. The seller completes these forms and they are used to confirm additional information about the property such as any work that has been carried out, who maintains the boundaries, what items are included in the sale and if it is a leasehold property, who manages the property.
SDLT- This is HMRC’s Stamp Duty Tax. All purchase transactions require a SDLT return however only some transactions incur a fee. You may be exempt from paying a fee if a relief applies such as first time buyers.
Searches- Searches are required for most purchases transactions and some remortgage transactions as they are often a requirement of your lender. The standard search pack includes a Local Authority Search, Environmental Search, Drainage and Water Search and Chancel Repair search and/or Indemnity Policy. The results of the searches can take anything from a few days to several weeks to come in.
Transfer/TR1-The document is required on both sale and purchases and is now used by the land registry to confirm the ownership has gone from previous owners to the new. The document is signed shortly before exchange and all signatures must be witnessed independently. The original required in the post.
At Manning Stainton we have a dedicated team of Move managers to guide you through from sold to completion. If you need any more advice please contact your local Manning Stainton Branch.