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Property Jargon Buster
When it comes to property, there’s a lot to get your head around. In this blog, we’ll explain some commonly used terms you may hear during the buying or selling process. We hope this will shed some light on what they all mean!
Agreement in Principle (AIP) - A statement from a mortgage lender that confirms they will lend you a certain amount based on your earnings, credit search and score.
Buy To Let Mortgage - A mortgage designed specifically for buying a property that will be rented out.
Buyer - The person who is buying a property (also known as the purchaser).
Chain - A chain is formed when several property sales and purchases are inter-dependent e.g., if you want to buy a house but first must wait until the seller buys their next home, you’re in a property chain.
Chartered Surveyor - A surveyor, accredited by the Royal Institute of Chartered Surveyors (RICS), who is employed to carry out a survey on a property.
Closing Date - A specific date and time set for when offers should be submitted.
Conveyancing - The legal process of transferring property ownership from one party to another.
Date of Entry - The date the new buyer takes ownership of the property. The buyer’s solicitor will also pay the purchase price to the seller’s solicitor on this day.
Deposit - The amount of money you must contribute towards the property purchase. This amount can vary depending on the percentage mortgage.
Home Report - A document which every seller of a residential property is required to produce prior to putting the property onto the market. It contains four separate documents: The Single Survey, Energy Report, Mortgage Valuation Certificate, Property Questionnaire (completed by the vendor).
Instruction - When a property owner asks an agent to market their property for sale.
Land and Buildings Transaction Tax (LBBT) - A tax applied to residential and non-residential land and buildings transactions (including commercial leases).
Law Society of Scotland - The professional body for Scottish solicitors who set and uphold standards.
Lender - An institution that lends funds to assist the borrower with a property purchase.
Missives & Concluded Missives - Missives are the contract between a buyer and seller. Once all points have been agreed, a legally binding contract will be formed – this is known as Concluded Missives.
Note of Interest - If a person is interested in a property, they should notify their solicitor so they can submit a note of interest in the property. This lets the agents know you are interested and if a closing date is set, those who have noted interest should be informed so they can submit their best offer.
Under Offer - When a property is listed as ‘under offer’ it means an offer has been accepted and the conveyancing progress can take place.
Valuation (Market Appraisal) - An estimate of a property’s value typically carried out by an agent.
Vendor - The person selling a property.
Jargon busting from A-Z!
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