Abstract title: A list of all documents that prove title to land.

Advance: Money lent by a Bank or Building Society to buy or improve your house. Secured on the property and often called a Charge or Mortgage.

Agreement in principle: An 'agreement in principle' is an agreement from a mortgage lender that in principle they will lend you a specified sum for property purchase (as long as any property you buy is satisfactory to them and that you are able to verify the income you have declared).

Appraised Value: The estimated value of a property by a surveyor

Arrangement Fee: This is a charge levied by the lender to cover the costs of administering and reserving the funds for certain types of mortgage. May be paid separately or added to the loan amount.

Assign: To transfer the right or interest in a property from one person to another.

Bankers Draft: A cheque drawn directly from a bank’s funds, and not from an individual’s account.

Breach of contract: Where one of the parties bound by a contract fails to keep to the contract’s terms and conditions.

Bridging Loan: A loan from a Bank to enable property to be purchased before Sale of existing house. Very risky if it is an "open" bridge where Contracts have not yet been exchanged on your sale. High rates of interest apply generally.

Buildings Insurance: Insurance to cover any structural damage to your house.

Buyer: The person purchasing a property otherwise known as the Purchaser.

Charge: The term used for the security that the lender relies on when granting a mortgage.

Client Account: A solicitor’s bank account where a client’s money is held.

Completion date: The date that a contract takes effect and property ownership passes from seller to buyer.

Completion statement: A list of all the financial aspects of a transaction. Produced by a solicitor, it sets the costs against the money being received and shows whether money needs to be paid to the client or whether a shortfall needs to be made up before completion.

Contents insurance: Insurance to cover any loss or damage to your possessions within the property.

Contract: The document setting out the parties, the properties and any special terms and conditions relating to your sale or purchase.

Contract race: When a seller deals with more than one prospective buyer and exchanges contracts with whichever is ready first.

Conveyancing: The legal document transferring ownership from seller to buyer.

Covenant: An agreement contained within a contract or a deed that binds somebody to do something (or not to do something).

Declaration of trust: A document binding joint owners of property governing the division of proceeds of sale upon completion.

Deed: Legal documents proving ownership of the property.

Deposit: The amount of money paid by the buyer on exchange of contracts, usually 10% of the purchase price.

Disbursements: Fees paid by the buyers solicitor on his or her behalf, which include stamp duty, land registry and search fees.

Draft contract: Preliminary, unconfirmed version of the contract.

Easement: A right granted over a property or land e.g. a right of way.

Energy performance certificate: Forms part of a Home Information Pack. This is a new type of survey that assesses the energy efficiency of a property along with the environmental impact based on its CO2 emissions.

Environmental report: A report on the land uses of a property and its surroundings now and in the past. This will indicate the likelihood of contamination or pollution.

Equity: The difference between the value of a property and the amount of mortgage owed.

Exchange of contracts: The point at which the signed contracts to buy and sell are exchanged along with your deposit, to legally commit the buyer and seller to the transaction, at the price agreed.t which the Contract becomes legally binding and you are then committed to the transaction.

Filed Plan: Plan prepared and held by the Land Registry identifying the extent of the property.

First day marketing: From 6th April 2009 a Home Information Pack will be required to be in place as of the first day of marketing the property.

Fixtures and fittings: Fixtures are items that have become part of a building or land and are therefore included in the sale. Fittings are not attached to the building or land and so are not included in the sale unless otherwise agreed. The seller will complete a fixtures and fittings form that will confirm what is included in the sale, what isn’t included, and what is for sale separately.

Freehold: Absolute ownership of the land upon which the property is built.

Full structural survey: A detailed examination of the structure of the property undertaken by a qualified surveyor.

Ground Rent: The charge made by the freeholder to the leaseholder as a right to occupy a property.

Guarantor: The lender may sometimes require a borrower to appoint a guarantor. This is someone who promises to pay the borrowers debt if the borrower defaults.

HMO: Houses of multiple occupancy.

Homebuyer’s survey: A survey report, which is not as detailed as a structural survey, carried out by a chartered surveyor to assess the state of a property and its value.

Home information Pack: A Home Information Pack (HIP) contains various documents relating to the property including an Energy Performance Certificate (EPC), Property Information Questionnaire (PIQ), searches and evidence of the legal title. A HIP must be completed before the marketing of a property can begin. The estate agent usually helps with this.

IFA: Independent Financial Advisor.

Indemnity Insurance: Insurance against any aspect of a property transaction such as an adverse search result or breach of planning/building regulations. This will not solve any problems but it will provide compensation.

Interest charge: The charges that banks make on a loan, calculated as a percentage of the amount borrowed.

Inventory: A list describing the condition of furnishings and contents of a leased property at the commencement of the tenancy in order that any dilapidation during the tenancy can be identified.

Joint tenants: Where one person owns a property jointly with others. Upon the death the survivor automatically inherits the deceased's share of the property.

Land registry: Central Registry responsible for recording ownership of land.

Land registry fee: Fees paid to Land Registry to record your purchase.

Lease: For a leasehold property, this document sets out the terms of occupation between landlord and tenant.

Leasehold: Owning a property for a fixed term but not the land on which it stands.

Lender: Institution that lends money to assist your purchase such as a Bank or Building Society.nds money to assist your purchase such as a Bank or Building Society.

Lessee: Someone who holds the lease.

Lessor: Someone who grants a Lease otherwise known as a landlord.

Listed Building: One officially listed as being of special architectural or historic interest, which cannot be demolished or altered without (local) government consent.

Local authority search: Application made to the Local Authority for information that may affect a property. The search results will show such things such as planning restrictions and whether the roads have been adopted and are maintained by the Council.

Maintenance Charge: An amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of the building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as service charge.

Management Company: Company formed to manage obligations of a lease such as insurance and repairs.

Managing agents: Firm employed by a landlord or management company to arrange practical maintenance and general management of a building.

MIG: Mortgage Indemnity Guarantee usually insisted upon by Building Societies if you are borrowing more than 90% of the purchase price. Effectively an Insurance Policy for the Exclusive benefit of the Building Society which guarantees Repayment of their loan if default offers within 12 months. Premiums sometimes paid by you or the Building Society.

Mortgage: Loan secured against a property.

Mortgagee: Bank or Building Society.

Mortgage Deed: The document signed by you ultimately recorded at the Land Registry containing the terms and conditions of your loan. The Lender is entitled to hold the deeds as security against the loan to ensure that it is fully repaid.

Mortgage rate: The standard variable interest rate quoted by all mortgage lenders which normally varies with the Bank of England base rate.

Mortgage term: The period of time over which (repayment mortgage) or at the end of which (endowment mortgage) the loan is to be repaid.

Mortgagor: The Borrower.

NHBC: National House Building Council. Regulatory body for new or converted properties who issue a 10 year structural guarantee.

Offer: A sum of money that the buyer offers to pay for a property

Office copy entries: Copy of the details held by the Land Registry relating to the property.

Offer: A sum of money that the buyer offers to pay for a property.

Property information form: Form completed by a Seller giving details of the property such as ownership of boundaries, guarantees and disputes.

Property information questionnaire: This is issued by the HIP provider and forms part of the HIP. It must be completed by the seller to provide details relating to the ownership of the property and information about services such as council tax banding and the utilities.

Purchaser: The Buyer of a Property.

Preliminary enquires: The initial enquiries about a property put forward to a seller which the seller must answer before the exchange of contracts.

Planning permission: Official consent/approval from a Local Authority for works undertaken on a property.

Redemption: When a mortgage is paid off.

Redemption penalty: A sum charged by a mortgagee for early repayment of a mortgage. Generally only applies when advantageous terms were given by the mortgagee at the time the mortgage was granted i.e. Fixed Rate Interest.f Property which is registered at one of the government land registries.

Repossession: When the mortgage lender takes possession of your property due to non-payment of the mortgage.

Retention: Where a mortgage lender retains part of a loan, pending satisfactory completion of specified works.

Searches: Checks made with the Local Authority and Land Registry to find our whether any matters adversely affect the property.

Seller: The person selling a property.

Service charge: Amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of a building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as maintenance charge.

Stamp duty: Tax payable to the Inland Revenue when a purchase price is more than £175,000.

Solicitor: Legal expert handling all documentation for the sale or purchase of a property.

Subject to contract: A negotiated sale that is not binding on either party to the transaction until actual exchange of contracts.

Surveyor: Professionally-qualified expert who carries out the survey.

Telegraphic transfer: Method of moving money electronically on completion from one Solicitor's bank account to another to complete the purchase. Banks normal make a charge for this service.

Tenancy agreement: A legal agreement designed to protect the rights of the tenant and landlord and setting out all the terms and conditions of the rental arrangements.

Tenant: A person who pays rent for the use of property or land.

Tenants in common: Denotes the capacity in which joint owners hold the property usually in defined shares.

Tenure: The type of ownership, either freehold or leasehold.

Title deed: Documents showing the legal ownership of a property.

Transfer deed: Final document transferring the property from Seller to the Buyer used where the title is registered at the Land Registry.

Underlease: A further lease of whole or part of a property granted by an existing tenant.

Under offer: The status of a property for sale, when a seller has accepted an offer from a purchaser but prior to exchange of contracts.

Unregistered title: Where the property is not registered at the Land Registry and ownership much be proved by Title Deeds which must date back at least 15 years.

Valuation: A basic survey of a property to estimate its value for mortgage purposes. Mortgage lenders will insist on this before lending.

Vendor: The Seller of the Property.