Legal Terms > Glossary of Residential Legal terms

Glossary of Residential Legal terms

Bankruptcy Search

This search is carried out by the purchaser’s Solicitor prior to completion to ascertain whether the purchase has been made bankrupt. It is a condition of the purchaser’s mortgage lender that this search be carried out.

Coal Mining Search

This search is only carried out if the property is situated in a mining area. It is necessary to ascertain whether the property is at risk of subsidence.

Completion

From the purchaser’s perspective, this is the date on which the buyer moves into the property. From the seller’s perspective it is the date on which the seller must vacate the property.

Contract

This is the formal document which contains the details of the parties involved in the transaction, property details and price and details of the terms on which the property is being sold.

 Deposit

This is paid by the buyer and is usually 10% of the purchase price. A buyer may pay a lesser deposit if he/she is borrowing more than 90% of the price. However, a full 10% is at all times payable if the buyer were to withdraw from the transaction.

Drainage/Water Search

This search will establish whether the property is connected to mains drainage and to ascertain the location of the water and drainage pipes.

Environmental Search

This is a compulsory search carried out to find out whether there are any environmental issues which affect the property, such as flooding risk, land contamination, radon gas levels, which may effect the value of the property and the level of building insurance premiums.

Exchange of Contracts

At this stage, both the seller and purchaser are in a position to commit themselves legally to sell and purchase the property. Once their respective Solicitors have completed the exchange, carried out by telephone, the transaction neither party can withdraw without incurring financial liabilities.

Fixtures, Fittings and Contents Form

This is completed by the seller and identifies which items are being left at the property and which are being taken.

Local Authority Search

This search will disclose any planning applications, Building Regulation Approvals, Tree Preservation Orders, Compulsory Purchase Orders, whether the roads are maintained at the public’s expense and whether there are any proposed major road improvements within the surrounding area. The search is in respect of the subject property only and not any adjoining or neighbouring properties.

Office Copies

These are produced by HM Land Registry and show who owns the property and provides details of all legal matters affecting the property.

Seller’s Property Information Form

This form is completed by the seller and provides information about the property such as ownership of boundaries, neighbour disputes, whether any guarantees are available and whether any alterations have been made to the property. This form must be completed with honesty.

Stamp Duty

This is a tax levied by the Government. It is payable by the purchaser and the amount payable is dependent on the value of the property. For the current stamp duty rates, please visit the Inland Revenue website.

Transfer Deed

The document which transfers ownership of the property from the buyer to the seller. This is required by HM Land Registry to complete the registration of the property into the buyer’s name.