Selling Your House Glossary

Active

Simply put, when a property is active it means that it is open and available for sale on the market. This doesn’t necessarily mean that it isn’t receiving offers or views, but it means the seller is open to new offers and proposals. Active buyers, on the other hand, mean people who are committed to purchasing a property and are searching the market.

Agreement in Principle

A Mortgage in Principle (sometimes called an Agreement in Principle (AIP), Decision in Principle, or Mortgage Promise) is a general estimate from a lender of how much you could potentially borrow based on your financial situation. When applying, your mortgage advisor will consider factors such as your credit history, income, and deposit.

This estimate provides an indication of your borrowing power and can be used as proof of funds to show sellers you’re a serious buyer once your offer on a property has been accepted. However, it is not a formal mortgage offer and does not guarantee loan approval.

Annual Percentage Rate of Charge

Also known as APRC, this is the total rate of interest you’ll pay for the entire duration of your mortgage. Lower APRC’s usually mean a better rate, as it takes into account all the different costs that will influence your mortgage.

Arrangement Fee

A charge by the lender for setting up a mortgage. It covers the administrative costs involved in processing and approving the loan. This fee can often be paid upfront or added to the mortgage amount.

Blank Canvas

In interiors, a Blank Canvas is a property that comes completely unfurnished. Usually landlords will advertise their rentals as to whether they come with fixtures such as appliances, sofas and other additions.

BMV

This stands for ‘Below Market Value’, which means that residential properties are available for sale at a price below their actual market value. Usually, this means that the seller is keen to sell their property to prospective buyers in order to secure a quick sale. The benefits mean a smoother, faster process for the owner and a cheaper option for the buyer. Find out more about valuing your property.

Booking Fee

A smaller, upfront fee some lenders charge to reserve a mortgage deal while the application is being processed. It is usually paid early in the process to secure the agreed interest rate and product, and may be non-refundable if the mortgage doesn’t proceed.

Break Clause

A Break Clause is a term in property law that is a written, explicit right that anyone within a lease contract can terminate it at a certain point. This can mean that tenants, landlords or both can stop the lease at a determined time or on a ‘rolling break’, which lets the person in question step away at any time during the lease’s term. These conditions are likely suited to tenants who prefer flexible leases, as opposed to a fixed-term tenancy.

Buy-to-Let

This refers to, or represents, a property that has been bought for the purpose of letting it out to tenants, rather than the buyer living in it themselves. Some mortgage lenders specialise in offering loans tailored to those exclusively looking to buy-to-let, and the practice is generally seen as making an investment within property.

Buyer

Essentially what it says on the tin, a buyer in real estate terms is a person who is buying a house, flat or some kind of property.

Capital

The original amount of money borrowed through a mortgage or loan, excluding interest, fees, or other charges. It is the base figure on which interest is calculated and what the borrower gradually repays over the term of the loan.

Cash Purchases

Also known as a cash sale or cash buyer, this is a purchase from someone who can buy the property immediately with money they have on hand. This means they don’t have to take out a loan or apply for a mortgage to secure the home, but they must have the cash fund available at the time of making an offer to be considered.

Chain

These are premises on the property market that are ‘chained’ together during the process of moving. Each buyer and seller are connected by whether the sale or purchase of a property is successful: if one moves out, another can purchase that home and move in, freeing up their own. Chains can vary in length, and they depend on whether the exchange of contracts happens at the same time.

Chain Free

As the name suggests, being chain free means that the buying or selling process is not dependent on other buyers or sellers exchanging contracts at the same time. This makes the transaction simpler and quicker.

Being chain free is particularly attractive to sellers because it reduces the risk of delays or the sale falling through. It’s also appealing to first-time buyers, who often want a smoother, less complicated purchase without waiting for others to complete their sales.

Collateral

Collateral is a property or asset that a person or entity, such as a business, offers to a mortgage lender as security for a loan. It’s used as a way to guarantee that a loan is protected against potential loss or possible default, should the borrower become unable to pay. If this happens, the collateral in question will belong to the lender as compensation on unreturned borrowed money. Depending on how long payments are left unmade, a repossession process may start if the lender takes court action.

Completion Date

This is the agreed date that sees all aspects of the property transaction finished, meaning the ownership is officially transferred from the seller to the buyer – completing the sale!

Completion Statement

A document showing all costs and monies due at completion, often provided by the solicitor.

Compulsory Purchase Order (CPO)

This is a legal order that allows local authorities that wish to acquire property or land the ability to do so without the permission of the owner.

Contract

This is the document that details the agreement between the buyer purchasing the property and the seller. This contract will set out the terms of the sale and should feature the Law Society’s Standard Conditions of Sale within the body of the draft.

Covenant

This is a responsibility for homeowners found within the title deeds to a property. Covenants can stop the owner from doing certain things to the property, such as keeping boundaries, or prohibit the property from being used for another purpose.

Conveyancer

A legal professional, not necessarily a solicitor, who handles the legal and administrative process of transferring property ownership from one person to another.

Conveyancing

The process of legally transferring property ownership between buyer and seller.

Declaration of Trust

This is a document that notes who will receive the money from a property sale and in what measures, once the sale is finalised. This document will usually be handled by a solicitor and can also be known as a Deed of Trust.

Deeds

A deed is a formal, written document that confirms an interest, right or passage of property to a person who will take on any binding obligations, which essentially, confirms ownership. Deeds need more than a signature, as they can be enforced without further consideration and typically last twelve years – although it is six years for claims for arrears of rent or arrears of interest under a mortgage.

Default

A default (or to default) on a pre-arranged mortgage is when a person fails to repay, or makes smaller repayments than originally agreed, to the lender. Before a mortgage officially goes into default, the lender will usually get in touch to issue a notice following missed payments spanning between three and six months. 

This can also be termed as ‘arrears on mortgage payments,’ which can have repercussions, as defaults can reduce people’s chances of securing credit, raise interest rates on existing loans and lower credit scores.

Deposit

A deposit is a sum of money paid upfront as security in property transactions, but its meaning varies by context:

• For property purchases, the buyer’s deposit is a lump sum paid towards the purchase price, usually at the point of exchange of contracts, demonstrating commitment to the sale.
• For tenancies, a tenancy deposit is paid by the tenant to the landlord or agent at the start of the rental agreement. It acts as security against potential property damage or unpaid rent. It’s important to note that rent paid in advance is not considered a deposit.

Disbursements

These are essential fees, such as Stamp Duty, Land Registry and search fees on top of conveyancing which you normally pay via your solicitor on your behalf.

Early Repayment Charge (ERC)

This is a charge paid by a person borrowing from a mortgage broker when they choose to pay their loan off earlier than the agreed term. This can also be known as an Early Repayment Penalty.

Easement

This is where a landowner has usage rights on a section of land, near their own, for their own benefit.

Energy Performance Certificate (EPC)

EPCs are a method of measuring how efficient a property is in terms of energy usage, which marks them on a scale of A, which is the most effective, all the way to G.  Usually the most efficient houses will yield the cheapest energy, and UK homes rank variably. They are a legal requirement for a building to be let, built or sold and are valid for ten years, having been first introduced in 2007.

Estate Agent Fees

Estate agencies charge a fee that covers the cost of their services, which may involve the listing of a property, expert valuations, dispensing advice and more. They are required to tell you by law what is included as part of this fee and issue a breakdown of costs, which is normally due on completion. An agent may charge upfront, but each agency will notify clients when fees should be paid.

Exchange of Contracts

The exchange of contracts is when a transaction involving a property becomes legally binding, and both the buyer and seller are contractually required to finish the purchase on the agreed date of completion. If either party decided to pull out at this point after the entire process, it wouldn’t be without financial penalties.

First Charge / Second Charge

A First Charge is the primary loan secured against a property, giving the lender the highest priority to be repaid if the property is repossessed or sold.

A Second Charge is a secondary loan secured against the same property, which is repaid only after the first charge lender has been paid in full. It is often used for additional borrowing without remortgaging.

First-Time Buyers

The classic definition of a first-time buyer is ‘a person buying a house or flat who has not previously owned a home – and therefore has no property to sell.’ But anyone who is applying for a mortgage who isn’t a homeowner, buy-to-let investing or planning to remortgage is also broadly classed as a first-time buyer – although the Government requires you to have never owned a property before to qualify for tax benefits.

Fixed Price

When a house is put on the market at a Fixed Price, this means the seller is hoping to attract offers at the price as advertised. This is a popular choice for properties that have been on the market for a few weeks with little movement, as it infers that the asking price will not rise above that limit. No offers will be accepted unless it meets or exceeds the fixed price.

Fixtures and Fittings

Fittings (also known as chattels) are items in a property that are not permanently attached, typically held in place by glue, nails, or screws, and can be removed by the seller if they choose. Common fittings include carpets, blinds, decorative items, ovens, lamps, and appliances like washing machines or refrigerators. These items are not automatically included in the sale and may be excluded unless specifically agreed in the contract.

Fixtures are items that are permanently attached to the property, such as television aerials, electric sockets, light fittings, security systems, and built-in furniture like fitted wardrobes. Fixtures are considered part of the property and usually included in the sale.

Because what counts as a fitting versus a fixture can sometimes be unclear, it is a common source of legal disputes between buyers and sellers. To avoid confusion, it’s important that both parties clearly specify in the sale contract which items are included or excluded.

Flying Freehold

This occurs when part of the property in question lies under or hangs over another person’s land or residence. Some common examples include: balconies that lean over the property next door, basements that go beneath the neighbouring home, rooms above shared passageways and unequal dividing lines between houses.

Freehold

When someone owns a property outright, including the land it is built on, it is termed as a freehold. Those who own freeholds are responsible for looking after the land and any property it entails.

Full Structured Survey

A full structural survey, now commonly referred to as a Level 3 Building Survey, is the most comprehensive type of property survey available. It involves a detailed inspection of a property’s structure and condition, carried out by a qualified surveyor.

The survey covers all accessible areas of the building, including walls, roofs, floors, windows, cellars, and lofts, and identifies both visible and potential hidden defects. It also includes expert advice on repairs, maintenance, and potential issues such as damp, subsidence, or structural movement.

Gazumping

This is one of the stranger terms within property vocabulary, which describes a situation where a person is pushed out of a purchase thanks to another party making a higher offer. While unpleasant, it isn’t an illegal occurrence. Although two parties may accept an offer on a property, nothing is set in stone until contracts are exchanged.

Gazundering

Often mixed up with its similarly strange sibling, Gazundering happens when a buyer chooses to lower their proposed offer just before contracts are exchanged. Although it may seem unfair, this is also a legal practice.

Ground Rent

In England and Wales, this is a yearly amount paid by a leaseholder to the landlord or freeholder of a property. This rent can differ from lease to lease, and rates can be fixed or escalated depending on the agreement.

Guarantor

This is a person who agrees to sign documentation guaranteeing the repayment of a loan or debt on behalf of the borrower should they not be able to repay as per the terms laid out in the lending agreement.

Guarantors have become increasingly important for first-time buyers, especially those with limited credit history or smaller deposits, as lenders may require additional security to approve their mortgage applications.

Guide Price

The price the seller hopes to achieve, used as a reference point for buyers. It is not a fixed price and is intended to guide buyers on the expected sale price.

Help to Buy Equity Loan

The Help to Buy Equity Loan is a UK government scheme designed to help first-time buyers and new homebuyers purchase a new-build property. Under this scheme, the government lends you up to 20% (40% in London) of the property’s purchase price, interest-free for the first five years. You need to provide a minimum 5% deposit and secure a mortgage for the remaining amount.

This loan is a form of shared equity, meaning the government owns a stake in the property proportional to the loan amount. When you sell or pay off the loan, you repay the government’s share based on the current market value of the property.

The Help to Buy Equity Loan makes it easier for first-time buyers to get on the property ladder by reducing the amount they need to borrow from a mortgage lender. This is subject to eligibility and regional availability.

Home Buyers Report

This is a document that covers the conditions regarding structures in the main areas of a property. It’s a survey best suited for conventional properties in a reasonable condition, increasing in price depending on the home’s value. This report helps owners find problems such as damp, structural issues or subsidence, but it does not look beyond the walls or under the floorboards.

House in Multiple Occupation (HMO)

A HMO is a residential property that has multiple tenants living together at once. Properties termed under such are regulated under different conditions than normal rental properties and must fall into one of the following sections: a building or flat in which two households share a basic amenity, a converted building that does not entirely comprise of self-contained flats, a converted block of flats that does not meet the relevant standards and, finally, a building declared a HMO by the local authority.

Indemnity Policy

This is a term relating to a particular insurance policy that protects a buyer or their mortgage broker while in the process of buying property. These policies cover a number of potential surprises, such as small repairs that must be fixed before the sale resumes, or larger issues such as work carried out without permission or problems found in the deeds. The premium only needs to be paid once after the transaction goes ahead.

Instruction

This essentially means what it implies: that a seller has told an estate or lettings agent to list their property on the housing market. The same term also applies to conveyancing solicitors and legal advisers, in relation to someone carrying out parts of the transaction on their behalf.

Interest Rate

An interest rate is a percentage charge added to the total amount paid back on a loan. Any changes in interest rates can influence the amount that is repaid in total – especially if it rises – as it means you will be paying back the entire loan plus the new value of interest on top. Interest is charged similarly to a hire cost, which comes with borrowing from a mortgage broker or loan provider.

Inventory

An inventory lists the entire contents of a property, including its structural state and condition. This is  usually found in Assured Shorthold Tenancies, often used as a tool by landlords to mark how much of a deposit will be returned at the end of the tenancy.

Joint Agency

In a similar principle to a Joint Tenancy, this is where two estate agents work together to sell a property. This may work to secure a quick sale on behalf of a client or ensure that a particular residence, such as a premium listing, gets sold.

Joint Mortgage

In theory, a Joint Mortgage is exactly like a regular mortgage – except that it is in the name of two or more people. This is useful for people wishing to share a mortgage with their partners, family members or anyone who is assisting in buying a property. It is also used when more than one person wishes to purchase a location for their business, and it isn’t necessarily limited to just two people. Some brokers may offer mortgages for up to four people looking to enter a joint venture, meaning that a larger amount of money could be borrowed.

Joint Tenancy

The identifying factor of a joint tenancy is that a property is equally owned between two people. Usually found when couples or relatives choose to buy a residential space together, it can be a good choice as it streamlines beneficial ownership. There may also be fewer legal fees thanks to a simpler process and less documentation needed.

Kicked Out

Getting kicked out is more formally known as getting evicted. Started with an ‘Eviction Notice’, this is a communication from a landlord that marks the first step in ending someone’s tenancy. Eviction is a legal process that must be adhered to – it is usually made up of three stages in regard to private rentals: notice, court action and eviction by bailiffs. There are different procedures to follow depending on the type of tenancy, including assured shorthold, excluded tenancies and licenses, and regulated tenancies. 

Land Registry

The Land Registry is a non-ministerial department of the UK Government, responsible for registering the ownership of land and property in England and Wales. Any charges against the property, such as mortgages, are also recorded.

Land Registry Fee

Now you know about the Land Registry, we must inform you that there is also a Land Registry Fee. This is a simple fee charged by the Land Registry to record the change in ownership of a given property.

Leasehold

A leasehold is the occupation of a property by way of a lease agreement, usually for a predetermined span of time. Such an agreement doesn’t only apply to flats but houses and can last for 99 years or more. You own the property for this length of time, but not the land (although you may be responsible for its maintenance). Ownership returns to the freeholder at the end of this lease.

Recent leasehold reforms in the UK, such as ground rent reforms, have sought to limit or eliminate onerous ground rents and improve leaseholders’ rights, making leasehold ownership fairer and more transparent.

Letting Agent

A letting agent works for the landlord of a property to find a suitable tenant. We, at JonSimon, are one of many proficient letting agencies in the country, where we draft property particulars, market a property, conduct viewings and deal with the formalities of drafting a tenancy agreement.

Listed Buildings

If you’re looking to sell your house and are perusing the market, you might come across a listed building. Listed buildings have special cultural, architectural or historical interest; they (almost always) carry certain restrictions and obligations with them that oversee its careful use, restoration and maintenance.

Loan-to-Value (LTV)

The ratio (expressed as a percentage) of the loan amounts to the value of the property.

For example, a £90,000 mortgage on a £100,000 home is a 90% LTV.

Local Authority Search

Here, a buyer’s conveyancer will make a formal enquiry to the local authority, requesting to find out if there are any matters of importance affecting the property that is being purchased. These can include listed building status, financial charges against the property, tree preservation orders or conditional planning permissions.

Maintenance/Service Charge

A maintenance or service charge is a fee collected for the upkeep and maintenance of a property and its communal areas. While most common in leasehold properties such as blocks of flats or apartments, service charges can also apply to freehold properties, especially those located on estates with shared communal spaces like gardens, roads, or facilities. The charge is usually divided among the number of units or homeowners benefiting from the services.

Maisonette

The housing market also includes maisonettes – a term you might have never encountered before. A maisonette is a two-storey flat with its own private entrance. Here, the front door is your own, meaning you can exit your house directly, as opposed to a regular apartment where you share a corridor/exit.

Memorandum Of Sale

A Memorandum of Sale is a document issued by the estate agent once an offer on a property has been accepted. It outlines the key details of the agreed sale, including:

• The property address
• The names and contact details of the buyer and seller
• The agreed purchase price
• The solicitors acting for both parties
• Any special conditions of the sale

While not legally binding, the Memorandum of Sale acts as an official summary of the transaction and is sent to both parties’ solicitors to begin the conveyancing process. It may also be referred to as a Notification of Sale.

Issuing the memorandum marks the property as ‘Sold Subject to Contract’ (Sold STC) – no longer listed as ‘Under Offer’.

Mortgage

A mortgage is a loan taken out to buy property or land, typically from a bank or building society. The loan is repaid over a fixed term (usually 25 to 35 years) with added interest. Because the mortgage is secured against the property, the lender has the legal right to repossess it if the borrower fails to make repayments.

Before applying, many buyers use a mortgage calculator to estimate how much they might be able to borrow, what their monthly payments could look like, and how different deposit amounts or interest rates will affect affordability. These tools help with planning and budgeting during the home-buying process.

You may also encounter a mortgage valuation, mortgage offer and mortgage broker in your effort to secure the right mortgage for your home.

Mortgage Deed

A legal document that gives a lender the right to take ownership of a property if the borrower fails to repay the mortgage. It sets out the terms of the loan and is signed by the borrower before funds are released.

Multiple Agent Instructions

Sometimes, a seller or landlord will associate with multiple letting agencies or estate agencies and instruct several to offer a property for sale or rent.

NAEA Propertymark

The NAEA Propertymark, with its full moniker being the National Association of Estate Agents, is the UK’s leading professional body for estate agencies. Reputable estate agencies will always be associated with the NAEA as an MNAEA (Member of the National Association of Estate Agents). JonSimon has team members fully affiliated with the NAEA Propertymark.

Negative Equity

Negative equity occurs when the sale value of a property is less than the outstanding mortgage balance. This situation is especially relevant if you’re looking to sell your home or remortgage, as you’ll need to cover the difference between the sale price and what you still owe on your loan. Negative equity is a common challenge in a falling property market.

If you find yourself struggling with negative equity, there are options and strategies to consider. 

As always, we at JonSimon are here to help with any of your mortgage questions and guide you through your options.

Negotiator

A negotiator is an individual, employed by an estate agent – like us! – who promotes and sells properties on the housing market. A negotiator will build a strong and trusting relationship with a client, only selling homes to whom they develop a close relationship with, and this distinguishes their role from the usual property agent.

Offer

A formal proposal by a buyer to purchase a property at a specified price.

Offers Over/Offers In Excess Of (OIEO)

When Offer (Over) or ‘offers over’ are mentioned, it simply means that offers over the sale price advertised are invited. Many sellers might want offers in excess of the price advertised, in contrast to offers in the region of a guide price or offers below.

Ombudsman

An ombudsman is an independent and free professional body that investigates complaints between consumers and service providers to reach a fair and impartial resolution. In the property sector, The Property Ombudsman specifically handles disputes between consumers and property professionals such as estate agents, letting agents, and property management companies.

If you believe there has been misconduct or unfair treatment during a property transaction or service, contacting The Property Ombudsman can help resolve the issue without needing to go to court. The Property Ombudsman is a free service and can be used before escalating a complaint to a court.

Open House

Alternatively known as an open viewing, this is a process – managed by estate agents like JonSimon – where several prospective buyers are guided through a property over a period of a few hours or so, as opposed to a private viewing, where just one potential buyer will be shown the property.

Open Market Value

The open market value is the likely sale price of a property, in the situation that there is both a willing seller and a willing buyer, with a fair and reasonable period of marketing, advertisement and publicity without unique factors affecting the property.

Part Exchange

Part exchange is a process where your current property is accepted as part or full payment towards a new property. This option is most commonly offered by new-build developers and is especially useful for buyers looking to move to a new area or upgrade their home without the hassle of a lengthy or drawn-out sales process.

Peppercorn Rent

Peppercorn rent is a very small or nominal rent, often just a symbolic amount like a single peppercorn, paid on leasehold properties. Although the amount is minimal, it must be paid to create and maintain a legally binding lease agreement, ensuring the lease remains active and enforceable.

Under recent leasehold reforms in the UK, peppercorn rents have become increasingly common in new leases as a way to avoid unfair or escalating ground rents, making leasehold agreements fairer for tenants.

Porting

The process of transferring your existing mortgage deal from your current property to a new one when you move home. It allows you to keep your current interest rate and terms, avoiding early repayment charges or fees associated with ending the mortgage early.

Preliminary Enquiries

Generally, when a sale is agreed on, the buyer’s conveyancer will confer with the seller’s conveyancer and send across a list of questions about the property. This list often involves standard enquiries, such as whether any issues are present in the property, and are accepted as part of due diligence by a prospective buyer in a property transaction.

Principal

The original amount of money borrowed through a mortgage or loan, excluding interest, fees, or other charges. It is the base figure on which interest is calculated and what the borrower gradually repays over the term of the loan.

Probate

Probate is the legal process of administering a deceased person’s estate, including the distribution of assets like property. When someone dies owning property, probate often involves the sale or transfer of that property. This process can be managed by family members or solicitors.

A probate court reviews the deceased’s assets and grants the official authority to the executor or administrator to manage and distribute the estate according to the will or law. Many property sales occur as part of probate, making it a crucial step in transferring ownership after a death.

Product Fee

This refers to any fee associated with a specific mortgage product, such as a fixed or tracker rate deal. This fee can be the same as an arrangement fee but may also include charges for features like overpayments or early repayment options.

Property Agent

Property agent is just another name for an estate agent! An estate agent arranges the sale, rent or management of various properties; taking the stress right out of the client’s hands. The responsibilities of a property agent involve advising clients throughout the purchase and sale process, which can include dispensing important information about market conditions and the like. Property agents may even conduct walkthroughs for your benefit!

Property Auctions

Property auctions are another viable way of selling a home. These sales are conducted at set times, by a qualified auctioneer, both online and at a physical location. Here, competing buyers bid openly over the properties they’d like and the highest offer wins! As soon as the auctioneer’s hammer hits the table, the purchase is as binding as any paper contract.

Purchaser

Of course, a purchaser is the interested party who will be (or is currently in the midst of) buying a property.

Redemption

Redemption is the process of paying off a mortgage or loan in full, either at the end of the term or earlier through a lump-sum payment. It typically occurs when selling a property or remortgaging. Redeeming a mortgage early may incur an ERC.

Repayment Mortgage

A repayment mortgage refers to monthly mortgage repayments, made of part accrued interest and part capital repayment. If repayments are made to date and on time, the mortgage amount will gradually decrease until repaid in full at the end of the mortgage term.

Repossession

Repossession is a legal process whereby a lender takes ownership of a property if the borrower fails to keep up with mortgage payments over a certain period. Before repossession can occur, the lender must obtain a court order granting them the right to take possession of the property. The lender usually sells the property afterward to recover the outstanding debt on the mortgage.

Retention

Retention refers to the practice of withholding a portion of the purchase price or mortgage loan until certain repairs or remedial works on a property have been completed to a satisfactory standard. This is commonly recommended when a surveyor identifies significant issues during a property survey that could affect the property’s value or condition.

Sale Agreed

When the seller has verbally agreed to the purchase offer made by a buyer, this is when a sale is agreed!

Shared Equity

Shared equity is a homeownership scheme where you buy a property with the help of a partner (often a government or developer) who owns a share of the property’s value. You pay the mortgage on your portion and repay the partner’s share when you sell.

Shared Ownership

Shared ownership is an accessible, affordable type of homeownership that occurs when a building contractor or housing association retains a percentage of a property. Here, the purchaser will take out a mortgage on a share of the property, paying rent to the given landlord on the remaining share. For example, if you purchase a 50% share, you’ll pay rent to a landlord on the remaining 50%.

Sold Subject To Contract (SSTC)

Sold Subject to Contract (SSTC) means that an offer on a property has been accepted and the sale is progressing, but the transaction is not yet legally binding. The property is effectively “sold” in principle, but the deal depends on the successful exchange of contracts.

Sole Agency

Sole agency is when a single estate agent works on a seller’s behalf, marketing and handling the sale of their property. Often, a sole agent establishes a close rapport with the seller, with the aim of finding a suitable buyer.

Sole Selling Rights

When an estate agency or representative is granted ‘sole selling rights’ by the seller of a property, they can claim an agreed fee regardless of who actually introduces the buyer to the property. In fact, sole selling rights are much the same as sole agency, but you have to pay the estate agent even if you find your own purchaser!

The key difference is that with sole agency, the seller only pays the agent if the agent finds the buyer, whereas with sole selling rights, the agent is entitled to a fee no matter who sells the property.

Solicitor

When selling your home or purchasing a new property, you will likely encounter a solicitor. A solicitor is a legal expert regulated by the Law Society, and an authority able to handle all of the legal aspects of buying or selling a property. The right solicitor will keep you regularly updated regarding the process of buying or selling your property and should be able to answer any questions you may have.

Stamp Duty

Stamp duty is a tax paid by the buyer of a property to the government. Stamp Duty Land Tax can vary in charge and cost, and rates are ‘banded’ progressively – much like income tax. Calculate the stamp duty that you will need to pay as a first-time homeowner or seasoned real estate buyer.

Standard Variable Rate (SVR)

The default interest rate that a lender charges after an introductory mortgage deal (such as a fixed or tracker rate) ends. It can change at the lender’s discretion.

Subject To Contract (STC)

Subject to Contract (STC) is a status indicating that an offer has been accepted on a property, but the sale is not yet legally binding. Both buyer and seller have agreed in principle, but the transaction will only become final once the contracts are formally exchanged.

Survey

A survey is a detailed inspection of a property’s condition, carried out by a qualified surveyor. It identifies structural issues, repairs needed, and potential defects, helping buyers understand the true state of a property before completing a purchase.

With three kinds of surveys available to us, a surveyor can conduct a Valuation Report for mortgage purposes, a Homebuyer Report to determine the good and safe condition of your property, or a Full Structural Survey, encompassing the structural integrity of your future home.

TA6 Form

A detailed questionnaire completed by the seller during a property sale. It provides important information about the property, including boundaries, disputes, services, and planning permissions, helping buyers make informed decisions.

Tenancy Deposit Scheme

A landlord must put the deposit of a tenant in a government-approved tenancy deposit scheme, and, if the property remains undamaged, this deposit must be returned within 10 days of both landlord and tenant agreeing how much will, and should, be returned.

Tenants

A tenant possesses a property, owned by a landlord, under the terms of a lease or tenancy agreement. As a tenant, you will likely enter into a tenancy agreement legally agreeing to certain terms that govern the occupation of a property. These arrangements are usually temporary but can last for a number of years.

Tender

Tender is when a seller invites written offers for a property, to be received by a predetermined closing date. This allows for a property to be sold with efficiency at a date most convenient to the seller.

Tenure

Tenure simply refers to the various ways of holding ownership over a property, such as through a freehold or leasehold. Having a freehold or leasehold tenure can affect the purchase price of the property and hold repercussions for sale – something to bear in mind!

Tied Up

An informal way of saying that, yes, the seller has accepted your offer on a property. Although buying and selling a property can seem like a very serious and difficult process, there is some industry-specific lingo that is more informal, but helpful to remember. When a property is tied up, no other offers will be accepted.

Title Deeds

Title deeds are paper documents that detail and confirm the legal ownership of a property; they can include conveyances, contracts for sale and more. Bear in mind that a copy of your Title, found within the Title Deeds, which outlines your legal ownership of land or a home, once registered, can be obtained from the Land Registry.

Transfer Document

This is the final, legally binding document that transfers the rights of a property – and, indeed, the possession of the property – from the seller to the buyer.

Under Offer

When a property is ‘under offer’ it means that a purchase offer has been accepted by a seller, but formal contracts have yet to be exchanged. Legal contracts can take some time, and until the point at which the buying-and-selling process is formalised, a property will remain Under Offer.

Valuation (Market Appraisal)

Valuation, otherwise known as market appraisal, is a term often used by estate agents – like us! – to summarise the process of our trained agents giving an opinion on the open market value of a property. We are trained in determining the open market value of many homes across Bacup, Radcliffe, Ramsbottom and Burnley, with a clear idea of the eventual price of sale.

Variable Interest Rate

The variable interest rate refers to the fact that the rate of interest payments will usually always fluctuate over time, in line with general interest rates. This holds significance for your mortgage; a mortgage with a variable interest rate is an adjustable-rate mortgage.

Vendor

Vendor is a fancy way of referring to the seller of a property. Vendor is a term to look out for, as it may feature in much of your future documentation. 

Vendor Paid Deposit/Gifted Deposit

Sometimes, a vendor will gift a certain amount of deposit to aid the purchaser. This is also called a “gifted deposit” and can help buyers who do not have the required equity for larger loan-to-value mortgages. A vendor paid deposit can encourage eager homebuyers who do not have the required equity for larger loan-to-value mortgages, and there are no expectations on this deposit being returned.