Our Jargon Buster

Agreement in Principle (AIP) / Decision in Principle (DIP)
A statement from a mortgage lender confirming how much they are prepared to lend (subject to checks). Often needed at the point of making an offer.

Anti Money Laundering (AML) Checks
UK Laws requires that Estate Agents and Conveyancers / Solicitors carry out checks to prevent criminals from using property sales to hide or “clean” illegal money.  A full explanation is complex, but checks will include Identity, Address, a Politically Exposed Person check, a Sanctioned Individual check, a Source of Funds check.

Acceptance
When the seller agrees to the buyer’s offer — this is not legally binding until contracts are exchanged.

Caveat Emptor
It’s both Latin – and legal speak for “Buyer Beware”.   Despite all of the legal updates and protections, a buyer is still responsible for checking the property’s condition, both physically and legally,  before purchase.

Chain
A sequence of linked property transactions. If one sale or purchase is delayed, the whole chain may be affected.

Completion
The day the money transfers, the keys are released, and the buyer officially becomes the owner. The house sale is finished.

Completion Statement
A final financial breakdown from the solicitor showing all payments required to complete the transaction (including balance due, fees, and taxes).

Contract/Draft Contract
The Draft is initial contract for the sale prepared by the seller’s solicitor. It outlines the price, terms and conditions. The finished contract ready for signing is referred to by Conveyancers / Solicitors as an Engrossment.

Conveyancer
A solicitor or licensed specialist who handles the legal work when buying or selling a property.

Conveyancing
The legal process of transferring ownership of a property from seller to buyer.

Deed of Covenant
A legal agreement (usually for leasehold properties) confirming the new owner agrees to follow the lease terms and obligations.

Deposit
Money paid by the buyer when contracts exchange. Often 10% of the purchase price, but can vary.

Disbursements
Third-party fees paid by the solicitor on your behalf (e.g. searches, Land Registry fees). These are separate from their legal fee.

Easement
A legal right to use part of someone else’s land (e.g. shared access, drainage).

EPC (Energy Performance Certificate)
A document showing how energy efficient a property is, rated from A (best) to G (worst). Required when selling.

Enquiries
Questions raised by the buyer’s solicitor during Conveyancing that must be answered before the sale can progress to exchange.

Exchange of Contracts
The point at which the deal becomes legally binding. A completion date is set and the buyer pays the deposit.

Fixtures & Fittings
Items included in or excluded from the sale, such as carpets, curtains, lights and appliances.

Freehold
A method of ownership of both the building and the land it stands on. Subject to normal limitations of law, the owner can do whatever they like with the property.

Flying Freehold
Where part of a freehold property extends over someone else’s land. Can cause mortgage issues.

Gazumping
When a seller accepts a higher offer from another buyer after already agreeing a price, but before exchange.

Gazundering
When a buyer lowers their offer at the last moment, often just before exchange.

Ground Rent
A yearly fee paid by a leaseholder to the freeholder for the land beneath their property (leasehold only). Some leases have rising ground rent.

Indemnity Insurance
A specialist insurance policy used to resolve certain legal issues (e.g. missing planning consents, rights of way). Allows a transaction to continue where fixing the issue could take too long.

Land Registry
This is a government register of the records of ownership of land and property in England and Wales. It replaces the previous system of a physical deed / paper document.

Leasehold
A temporary method of ownership.  You own the building for a set number of years, but not the land. Ground rent and service charges may apply.

Leasehold Information Pack (LPE1)
A document provided by the freeholder/management company giving service charge, ground rent and building information. Required for leasehold sales.

Managing Agent
A company employed by the freeholder, landlord or management company to manage a building or estate on their behalf. Day-to-day contact for leaseholders.

Management Company (or Factors)
A company appointed to manage communal areas in flats or estates. The owner typically pays an annual service charge.

Memorandum of Sale
A document confirming the agreed price, the buyer and seller details, and both solicitors. It begins the conveyancing process.

Mortgage Offer
Formal confirmation from the lender that they will provide the mortgage funds for the purchase.

Mortgage Valuation
A mortgage lenders survey to assess the value of a property and confirm its suitability as collateral against the mortgage loan.

Offer
A proposed price by the buyer stating how much they are willing to pay for the property.

Politically Exposed Person (PEP)
Someone in a high-profile public role (or their close family/associates) such as an MP, ambassador, judge, or senior military/government figure.

Property Information Form (TA6)
A standard form completed by the seller giving important info such as boundaries, disputes, building works and guarantees.

Redemption Statement
A document showing how much the seller still owes on their mortgage, to be settled upon completion.

Restrictive Covenant
A rule on the title that limits what the owner can do (e.g. no business use, no extensions without consent).

Retention
Money temporarily held back at completion (usually by a solicitor) to cover an unresolved issue such as disputed service charges.

Right of Way
A legal right to pass across someone else’s land, often seen with shared driveways or footpaths.

Searches
Legal checks carried out by the buyer’s solicitor to identify any issues that may affect the property (e.g. planning, drainage, environmental).

Service Charge
A fee paid by leaseholders to cover shared costs such as building insurance, maintenance and communal areas.

Sanctioned Individual (SI)
Someone named on an international sanctions list (e.g., terrorism, organised crime, political sanctions).

Source of Funds
Evidence of not just that you have to funds to make a purchase, but where it is that the funds have come from.

Sold Subject to Contract (SSTC)/Under Offer
A property where an offer has been accepted but the sale is not yet legally binding

Stamp Duty / Land Duty Stamp Tax
A government tax paid by the buyer on property purchases. The amount varies based on price and circumstances.

Survey
An inspection by a surveyor assessing the property’s condition. Different levels are available depending on detail required.

Title Deeds
A Land Registry Document proving legal ownership of a property.

Title Plan
A Land Registry Document proving the physical extent of the land or boundary line of a property.

Transfer Deed
The document that transfers ownership of land and property from one person to another. It must be signed by each party in ‘wet’ ink and witnessed by an unrelated person.

Undertaking
A formal promise to take a specific action. Once given, the person must follow through — it’s legally binding

Vacant Possession
Usually, a property must be empty with no tenants or other occupants upon completion so the buyer can move in.

Vendor
The seller of a property.