Welcome to the House Buy Fast Property Glossary. We've defined every conceivable property related word or legal term and put them all in one place for you.
Begin typing a word into the search box or use the alphabetical buttons below.
Just start typing in the box below to begin searching for the property term you're looking for.
Disclaimer: Whilst this glossary has been compiled with considerable care, no guarantee can be made as to it's accuracy.
A
Acceptance
Document confirming to a lender that a borrower wishes to accept a mortgage offer.
Additional Security Fee
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Guarantee and Mortgage Indemnity Premium.
Addendum
An amendment or addition to the conditions whether contained in a supplement to the auction catalogue. This may be a written notice in the catalogue, or announced at the auction.
Auction
A public sale in which property or items of merchandise are sold to the highest bidder.
Auctioneer
The person who conducts an auction. The auctioneer introduces each lot offered for sale, acknowledges bids, and announces whether lots are sold or unsold and their final bid prices.
Auction Catalogue
The catalogue gives a description of the property, details on how to view each property and the General Conditions of Sale. These are prepared by the auctioneer, stating the basis on which the auction is carried out.
Actual Completion Date
The date when completion takes place or is treated as taking place for the purposes of apportionment and calculating interest.
Advance
Monies provided by a lender to a borrower and secured on the property as part of the mortgage debt.
Agreement
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Contract.
Annual Percentage Rate (APR)
Total cost of a loan expressed as an annual interest rate. Provides a useful comparison when reviewing mortgage offers.
Arrangement Fee
Fee charged by some lenders to cover the administration of arranging a loan.
Arrears
Amount that is overdue in relation to a mortgage, which may result in action by a lender to repossess the property.
Asking Price
Price set by the seller of a property as what they hope to achieve.
Assignment
Transfer of a right or claim to a property from one party to another.
Adverse Possession
Occupation of land inconsistent with the rights of the owner, without the permission of the owner.
Alienation
The transfer of property from one party to another.
B
Base Rate
Interest rate set by the Bank of England. Variable mortgage rates will often be adjusted depending on movements in the Base Rate.
Borrower
Person who is obligated to repay a loan in accordance with its terms.
Break Clause
Defines the point at which a contract may be terminated.
Bridging Loan
Temporary loan designed to enable a property to be purchased prior to the sale of another property.
Buildings Insurance
Insurance policy required by lenders and designed to cover any structural damage to a property.
Building Survey
Detailed report on the construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Structural Survey.
Beneficial Interest
The rights of a beneficiary in respect of property under a trust. It is a particular type of equitable interest.
Buyer
Person who is buying a property. Also known as the Purchaser.
Buy To Let Mortgage
Mortgage designed for buying property that is intended to be rented to tenants for investment purposes.
Bid
The offer to buy property at a specific price.
C
Capital
Amount borrowed on which interest is calculated.
Chain
Occurs where successive buyers and sellers are linked together and reliant upon one another to complete the transaction.
Charge
Security in the property relied upon by lenders when granting a mortgage.
Chartered Surveyor
Suitably qualified person employed to carry out a Building Survey and report on the condition of a property.
Collateral
Property pledged as a guarantee for the repayment of a mortgage.
Commission
Fee payable to an estate agent, usually a percentage of the property price, for providing certain services in relation to the transaction.
Completion
Point at which legal transfer of property ownership passes from one party to another.
Conditions Of Sale
Terms defined in the contract and which determine the rights and duties of the buyer and seller.
Contents Insurance
Optional insurance policy designed to cover any loss or damage to possessions within the property.
Caveat Emptor
Latin for let the buyer beware.
Chattel
An item of personal property (as opposed to real property).
Commonhold
A system of freehold ownership of units suitable for interdependent buildings such as blocks of flats, based on Australian strata title.
Common Law
Rules of law developed from the decisions of the courts of common law.
Constructive Trust
A trust imposed by equity (qv) to protect the interests of beneficiaries under a trust.
Unlike an implied trust, it is not normally based on the presumed intention of the parties, but is a device to prevent injustice.
Contingent interest
An interest that can only come into existence on the occurrence of a specified event, e.g. marriage.
It cannot be a legal estate, but takes effect as an equitable interest under a settlement.
Covenant
A promise contained in a deed (e.g. a clause in a lease). The person with the benefit is the covenantee, the person with the burden is the covenantor.
Contract
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Agreement.
Contract Race
Occurs when two or more parties attempt to purchase the same property and the Vendor will sell to the first party to exchange contracts.
Conveyancer
Suitably qualified person, such as a solicitor or licensed conveyancer, who handles the legal and administrative process of transferring ownership of a property from one person to another.
Conveyancing
Legal work involved in transferring the ownership of a property from one person to another.
Covenant
Legal requirement incorporated in the Title requiring the owner to do, or not to do, something in relation to the property.
D
Declaration Of Trust
Document that binds joint owners of a property with regards to the division of proceeds upon completion.
Deed
Legal documents proving ownership of a property. Also known as Title Deeds.
Deposit
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Down Payment.
Property Deeds
Title deeds are paper documents showing the chain of ownership for land and property. They can include: conveyances, contracts for sale, wills, mortgages and leases.
Determinable Fee
An interest in land which will automatically come to an end on the occurrence of a specified event. After 1925 it can only exist as an equitable interest.
Disposition
A creation or transfer of an estate or interest in land.
Detached
Property that stands alone and has no shared walls with an adjoining property.
Development
Property that is either newly built or has been recently refurbished.
Disbursements
Third party costs relating to transaction paid out by solicitor to cover items such as Stamp Duty, Land Registry, Local Authorities, etc.
Discharge
Termination of a mortgage obligation when no further payments are required.
Down Payment
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Deposit.
Draft Contract
Early version of the contract, which is then edited by the acting solicitors.
E
Early Redemption Charge
Financial penalty charged by some lenders if the borrower terminates a mortgage early.
Easement
Right granted to someone other than the owner of a property such as a right of way over land or a right to maintain services under land.
Endowment Mortgage
Mortgage designed for monthly repayments to be paid into an endowment (life assurance) policy, which is used to pay off the loan at the end of the term.
Engrossment
Final copy of a document prepared by a solicitor for signing by the parties.
Equity
Owner's financial interest in a property, calculated as the difference between the market value of a property and the balance outstanding on the mortgage.
Estate Agent
Property professional who markets property on behalf of sellers and who charges a fee, usually a percentage of the selling price.
Excess
Fixed initial sum that the insured party must pay on any insurance claim.
Exchange of Contracts
Point at which signed contracts confirming the intention to transfer ownership between buyer and seller are physically exchanged and the parties become legally bound by the terms.
Easement
The right of the owner of one piece of land (the dominant tenement) to a benefit from other land (the servient tenement).
Equitable interest
A right recognised by the courts of equity, as distinct from a legal interest recognised by the courts of common law, e.g. an interest under a trust.
Equity
The part of English law originating from decisions of the Lord Chancellor, and later the Courts of Chancery, which grew up to provide a remedy where the common law was inadequate. It is now a regulated set of legal principles.
Estate
The character and duration of a person’s ownership of land.
Estate Contract
An agreement to create or convey a legal estate, e.g. an option to purchase.
(Equitable) Estoppel
A principle which prevents a person going back on a representation. A proprietary estoppel, which prevents a landowner denying that a claimant has acquired rights in his land where he (the landowner) has acquiesced and the claimant has incurred expenditure.
Execution
The process of signing, witnessing and attesting a deed.
F
Failed Valuation Survey
When a lender turns down a mortgage application as a result of the surveyor's report.
First Time Buyer
Buyers who have not previously purchased a property.
Fixed Rate Mortgage
Mortgage with interest rates initially 'fixed' for a defined period.
Fixtures & Fittings
Those non-structural items in a property that should be listed to be included in a sale.
Flying Freehold
Where part of a freehold property overhangs a different freehold property or land.
Freehold
Absolute ownership of both a property and the land on which it stands indefinitely.
Full Structural Survey
Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor.
G
Gazumping
Where the seller has agreed an offer in principle on a property but then subsequently accepts a higher offer from another party.
Gazundering
Where the buyer has made an offer that has been accepted but then subsequently reduces the offer immediately prior to exchange of contracts.
Guide Price
A guide price gives an indication of the price that the property is expected to sell for and what the vendor is hoping to achieve.
Ground Rent
Fee paid annually by the leaseholder to the freeholder in order to occupy the land on which a property stands.
Guarantor
Person responsible for repaying a debt if the borrower defaults as required by some lenders.
H
Home Buyers Report
Standard report conducted by a surveyor on behalf of a buyer to assess value and condition of a property, highlighting major defects.
Home Condition Report
An optional part of a Home Information Pack (HIP) providing an objective report on the condition of a property.
Home Information Pack
Previously compulsory information pack compiled by the seller prior to marketing a property for sale, containing specified information relating to a property.
House Price Index
Statistical method of representing changes in house prices over time.
HMO (Home Of Multiple Occupation)
An HMO is a House in Multiple Occupation, usually known as a flat let house.
I
Improvement Grant
Grant made by a local authority towards the cost of repairing or improving a property.
Independent Financial Advisor (IFA)
Qualified person using specialised knowledge of the marketplace to select financial products to best suit the needs of their client.
Individual Savings Account (ISA) Mortgage
Mortgage designed for monthly repayments to be paid into an Individual Savings Account, which is used to pay off the loan at the end of the term.
Instruction
Engagement by a property owner of an estate agent to market the property.
Insurance
Protection against a specific loss over a period of time secured by payment of a regular premium.
Interest Charge
Fee charged by a lender on the borrower, calculated as a percentage of the amount borrowed.
Interest Only Mortgage
Mortgage where only the interest charges are repaid initially. Monthly instalments are invested by the buyer and repaid in full at the end of the term.
J
Joint Agents
Two estate agents jointly instructed by a seller to market a property, usually with a shared fee.
Joint Tenants
Equal holding of a property between two or more persons. If one party dies, their share passes to the survivor(s).
L
Land Registry
Government department responsible for recording ownership of land in England and Wales. Searches will be requested from the Land Registry by conveyancers as part of any property transaction.
Land Registry Fees
Set fee paid to Land Registry to register ownership of a property.
Lease
Possession of a property owned by another party for a specified time period. Also known as Tenancy.
Lease Agreement
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Tenancy Agreement.
Leasehold
Ownership and right to occupy a property by way of a lease agreement for a given period of time subject to an annual payment of rent to the owner of the freehold.
Legal pack
The vendor's solicitors prepares a legal pack containing copies of all the legal papers that you and your solicitor are likely to need to make an informed decision about your lot.
The pack should include (where applicable) copies of: special conditions of sale, title deeds, leases, office copy entries, searches, replies to pre-contract enquiries.
Lender
Institution that lends funds in order to assist the borrower with a property purchase.
Lender's Legal Fees
Fees incurred by the lender in arranging a mortgage and that are passed on to the borrower.
Lessee
Someone who holds the lease on a property. Also known as Tenant.
Lessor
Someone who grants a Lease on a property. Also known as Landlord.
Lien
Legal right or claim against a property as security for a debt.
Listed Building
Building that has been registered as being of special interest and has preservation orders on it.
Loan To Value (LTV)
Percentage indicating the ratio of a mortgage loan on a property to its market value.
Local Authority Search
Enquiries made to the local council regarding any future development issues that might affect a property and/or the surrounding area.
Lot
Each separate property described in the catalogue or (as the case may be) the property that the seller has agreed to sell and the buyer to buy.
Land Charge
An obligation imposed on a landowner in favour of a third party’s interest in the land.
Registrable under the Land Charges Act 1972 at the Land Charges Registry if relating to unregistered land. Registrable at the Land Registry if relating to registered land.
Legal Estate
Freehold or leasehold ownership of land.
Legal Interest
A limited category of interests in land specifically stated by s.1(2) Law of Property Act 1925 to be legal interests, e.g. a legal mortgage.
Licence
(In land law.) Permission to enter or occupy land for an agreed purpose. The licensor gives such permission, the licensee is in receipt of the permission.
Life Interest
An interest in property which only lasts as long as the life of a particular person. It creates a settlement and can only exist as an equitable interest.
M
Maintenance Charge
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Service Charge.
Maisonette
Property that comprises a portion of a larger building, usually arranged over more than one floor with its own private entrance.
Mortgage
Long-term loan used to fund the purchase of a property where the property is held as security.
Mortgage Agreement in Principle (MAP)
Lender's expression of intent to provide funding subject to certain conditions being met.
Mortgage Deed
Document containing the terms and conditions of a loan secured on a property.
Mortgagee
The lender of a mortgage.
Mortgage Indemnity Guarantee (MIG)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Premium (MIP) and Additional Security Fee.
Mortgage Indemnity Premium (MIP)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Guarantee (MIG) and Additional Security Fee.
Mortgage Rate
Standard variable interest rate quoted by all mortgage lenders. This varies in accordance with the Bank of England base rate.
Mortgage Term
Period of time over which a mortgage will be repaid.
Mortgage Valuation
Report commissioned by the lender to assess property value and determine maximum amount to be loaned on the security of a property.
Mortgagor
The borrower of a mortgage.
Multiple Agency
Where two or more estate agents are instructed by a seller to market a property. Only the agent who introduces a successful purchaser is paid.
Minor Interest
Interests in registered land which must be protected by registration.
N
Natural Rights
Fundamental rights which automatically belong to a landowner, breach of which will be actionable in nuisance, e.g. right to support from the soil.
Negative Equity
Occurs when the market value of a property falls to a value less than the mortgage loan balance.
NHBC (National House Building Council) Scheme
A guarantee offered on some newly built homes for structural defects occurring within a specified time after construction.
O
Offer
Indication from a potential buyer of a willingness to purchase a property at an indicated price. An offer is not legally binding in England and Wales and can be withdrawn or changed at any time prior to exchange of contracts.
Ombudsman
Independent body responsible for the investigation of complaints on behalf of consumers.
Open Market Value
Price that a property would likely achieve if it were available for sale.
Overreaching
The process by which interests in land are converted on a sale of land into rights in the proceeds of sale.
Overriding Interest
A right or interest in registered land which is binding on the Registered Proprietor and third parties without being registered, e.g. the rights of persons in actual occupation of the land.
P
Peppercorn Rent
Nominal ground rent usually paid annually (or sometimes not at all) and of trivial amount.
Pied-A-Terre
Property kept for temporary or occasional occupation.
Preliminary Enquiries
Initial set of questions regarding a property that the seller must answer prior to exchange of contracts.
Premium
Amount payable on an insurance policy, usually paid monthly.
Principal
Amount borrowed from a lender on which interest is calculated.
Public Liability Insurance
Insurance to cover the injury or death or damage to property of anyone on or around your property.
Purchaser
Person who is buying a property. Also known as the Buyer.
Previews Or Exhibitions
A viewing of the property held in advance of the auction. Pre-auction viewings are open to the public and may be attended at no charge.
Private Treaty
The sale of a property at a price agreed by the seller and the buyer or their agents.
Proxy Bid
The auctioneers can undertake bidding on behalf of buyers unable to attend the auction in person. The buyers must contact the auction house prior to the auction to obtain an official, proxy bidding form.
This must then be returned to the auction house with a deposit cheque within the time specified by the auctioneers.
The buyer writes the maximum amount they will bid to on the form and the auctioneers will bid on behalf of the buyer, up to, but not beyond, the stated price.
Part Performance
(Not to be confused with specific performance.) An equitable doctrine which allowed an imperfect contract to be perfected where it had been acted upon (i.e. partly performed) by one of the parties.
It was particularly applied to contracts for the sale of land, but has effectively been abolished in that context by the Law of Property (Miscellaneous Provisions) Act 1989.
Prescription
A method of acquiring an easement by long user.
Priority Of Mortgages
The order in which two or more mortgages over the same land will take effect.
Privity
The relationship between parties which results from them participating in the same transaction or occurrence; e.g. privity of contract (same agreement) and privity of estate (same legal estate).
Profit Á Prendre
The right to take produce from another’s land or to graze animals on it.
Puisne Mortgage
A legal mortgage in unregistered land in which the mortgagee does not keep the title deeds as security, e.g. a second or subsequent legal mortgage. It must be protected by registration.
Q
Quantum Meruit
An obligation to pay a reasonable amount for labour and materials, payable even in the absence of an enforceable agreement.
R
Rectification
Correction of a document.
Redemption
Completion of the full and final repayment of a mortgage.
Redemption Figure
Amount required to fully repay a mortgage including interest and any penalties.
Redemption (Equity Of)
The right of the mortgagor to redeem the property on repayment of the mortgage.
Registered Land
Land of which the ownership and third party rights affecting it are registered (recorded) at the Land Registry. Proof of ownership is via reference to the Land Registry entries.
Remainder
An equitable interest in land which only takes effect in possession when a prior interest ends.
Repayment Mortgage
Mortgage with monthly repayments consisting of capital combined with interest.
Repossession
Occurs when mortgage payments are in arrears and a lender chooses to take possession of the property that secures the loan.
Residential Property
Property occupied for private or domestic purposes.
Restrictive Covenant
A covenant which imposes a restriction on the use of land.
Reserve
A reserve price is the lowest price the vendor will accept. This is agreed between the vendor and the Auctioneer.
Most properties entered into the auction have a reserve price. This is confidential and not disclosed to any interested parties.
Retention
Amount held back by a lender until certain specified works have been completed.
Reversion
The interest in land retained by a person who has granted someone else a lesser interest.
S
Sale Agreed Or Sold Subject To Contract (STC)
An offer has been agreed by both buyer and seller and is now in solicitors hands.
Sale Contract
Legal agreement between a seller and an estate agent.
Searches
Enquiries made to the local authority and Land Registry for determining whether any matters adversely affect the property or the surrounding area.
Security
Property used to secure the mortgage loan.
Seller
Person who is selling a property. Also known as the Vendor.
Semi-Detached
Property where one side wall is shared with an adjoining property.
Service Charge
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Maintenance Charge.
Sole Agency
Where only one estate agent is instructed exclusively by a seller to market a property.
Sole Selling Rights
Where one estate agent has exclusive rights to market a property and is entitled to a fee irrespective of how the property is sold.
Solicitor
Professionally qualified legal expert who prepares documents for the sale or purchase of a property.
Specific Performance
An order of the court forcing a person to fulfil their contractual obligations.
Stamp Duty Land Tax (SDLT)
Tax paid to the government by a buyer on the purchase of a property.
Standard Variable Rate (SVR) Mortgage
Mortgage with interest rates that fluctuate at the discretion of the lender based on market conditions.
Strict Settlement
A trust which creates successive beneficial interests in land (usually with the object of keeping land in a particular family) and which brings it under the control of the Settled Land Act 1925.
Structural Survey
Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Building Survey.
Studio Flat
Flat consisting of one principle living area comprising both cooking and sleeping facilities with a separate bathroom/shower room.
Subject To Contract
Term used to indicate a provisional agreement prior to exchange of contracts that is not yet legally binding.
Survey
Report on the condition of a property.
Surveyor
Qualified expert who carries out the survey of a property.
T
Tenancy
Possession of a property owned by another party for a specified time period.
Tenancy Agreement
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Lease Agreement.
Tenant
Person (or entity) who is entitled to occupy a property under the terms of a Tenancy Agreement.
Tenants In Common
An optional method of shared home ownership (not necessarily in equal shares). If an owner dies, the owner's interest in the property is passed to the owner's heirs, rather than to the other owners of the property.
Tenure
Conditions on which a property is held, i.e. whether it is freehold or leasehold.
Term Of Years Absolute
A leasehold estate in land.
Terraced
Property where both side walls are shared with adjoining properties.
Title
Legal right to ownership of a property.
Trust For Sale
A trust under which the trustees are obliged to sell the property and hold the proceeds of sale on trust for the beneficiaries.
Trust Of Land
A trust under which the trustees have the power, but no obligation to sell the property.
The property until sold and any subsequent proceeds of sale are held on trust for the beneficiary(ies).
U
Under Offer
Status of a property from the point at which a seller has accepted an offer until exchange of contracts.
Unregistered Land
Land of which the ownership is not registered (recorded) at the Land Registry.
Ownership is proved by reference to title deeds.
V
Vacant Possession
Provision of a property that has been vacated by any previous occupants.
Valuation
Survey conducted by a suitably qualified professional such as a Chartered Surveyor to establish an estimate of the current market value of a property.
Variable Base Rate
Basic rate of interest charged on a mortgage that may change due to market conditions.
Vendor
Person who is selling a property. Also known as the Seller.
W
Withdrawn
Failure to reach the reserve price or insufficient bidding. The auctioneer will withdraw the property from the auction.
Y
Yield
Income generated from a property expressed as a percentage of the property value.