Conveyancing Glossary

  • Case Tracking
    the ability to view case progress through secure on line reporting facilities.

  • Caveat Emptor
    A Latin term which has stuck in the property transaction business and means that the buyer must beware of faults that go with the property. It is up to the buyer to make enquiry not for the seller to proffer the information. Although there have been some changes in the buyer’s interests to this legal principal it remains very much in force and must be guarded against by use of legal representation, survey and searches.

  • Conveyancing
    the process of handling the transfer of legal ownership of land.3

  • Exchange of Contracts
    the point at which a commitment to sell and a commitment to buy becomes legally binding and future withdrawal from the position would render either party liable to the other in damages.

  • Full disclosure
    it is a requirement to make all information known about the property, both good and bad, when selling

  • Homebuy Direct
    Homebuy Direct Scheme This scheme is available through "HomeBuy agents". A HomeBuy agent is an appointed Housing Association (they are non-profit making organisations) If you are approved as a buyer on this scheme then you could be eligible for an equity loan for up to 30% of the cost of the property. You would need to be able to fund the remainder (i.e. 70%) of the property and this would need to be arranged via a building society or bank. You would also need to be able to cover your legal fees and disbursements associated with the purchase. 30% is the maximum amount of the equity loan and the loan can be for between 15-30% and must be on a new property. The loan would be repaid when the property was sold or you are able to repay the same in tranches following a valuation being undertaken at your expense and the amount to repay is calculated at the market value of the property at that time whether the value has gone up or down. During the first 5 years of the loan you will not be liable for any interest charges after this there will be a monthly charge.

  • Investment
    some property transactions are undertaken for investment purposes such as buy to let, or for commercial letting rather than owner occupation.

  • ISO 9001
    International Standard of Operation, a quality standard covering all aspects of work undertaken by Franklins and applies to all areas of law. The standard is rigorously maintained and checked by external audit

  • Lender
    any individual or company involved in lending money to assist a buyer in the purchase of a property.

  • Lexcel
    A quality standard set by the Law Society of England and Wales covering all aspects of work undertaken by Franklins and applies to all areas of law. The standard is rigorously maintained and checked by external audit

  • Local Authority Grant
    local authorities may make repair grants available for the improvement of properties in their area. The grant conditions often require a repayment of the grant in part or in whole if the property is sold within a given time of the making of the grant.

  • Local Authority Search
    A search of the records for planning matters, building regulation issues and many other issues that arise from the exercise of local authorities legal responsibilities and which could affect the property to be bought.

  • Misrepresentation
    if information about the property is withheld or made to look more rosy and the buyer relies upon incorrect information the buyer may have a claim for compensation against the seller

  • Mortgage
    the method of financing and securing the obligation to repay the financing required to purchase land and buildings.

  • Newbuild Homebuy
    Newbuild Homebuy Scheme This scheme is available through "HomeBuy agents". A HomeBuy agent is an appointed Housing Association (they are non-profit making organisations) Under this scheme you would own a share of the property and pay rent on the remainder. You are able to purchase further shares in the property and indeed staircase to 100% following a valuation being undertaken by the Housing Association. Under this scheme you would need to be able to fund between 25-75% of the cost of the property by way of a mortgage or by using your savings with rent being paid on the remainder. The rent is generally calculated as to a maximum of 3% in the first year and the Lease will determine the rent review but normally it is reviewed in April of each year. You would need to cover your own legal costs and disbursements.

  • Principal Lender
    the lender of the first and possibly largest mortgage on a property (there can be more than one) and who would have first claim to recovery of monies lent.

  • Redemption Statements
    the confirmed figure required to be paid to a lender on a given date to enable them to remove their security for loan repayment from the title deeds and allow the property to be sold free of mortgage

  • Regeneration Area
    certain more deprived areas of the country mainly inner city have stamp duty exemptions to attract property purchase and redevelopment

  • Secure Reporting Service
    a discrete online report in real time on the work being undertaken by Franklins on the client’s case.

  • Shared equity
    A number of Developers are offering schemes whereby you are able to purchase 100% of the property for between 80-90% of the purchase price. Effectively you own the property but the Developer (Builder) provides an Equity Loan for part of the purchase price normally around 15-20%. The Equity Loan is secured by way of a second charge over the property after your main mortgage and you would be unable to sell or re-finance the property without paying off the loan.

  • Shared Ownership
    Shared Ownership is an alternative to renting a home or buying a property outright. There are Housing Associations all over the country offering such schemes. Through Shared Ownership it is possible to buy a share in a property and pay rent on the share you don't own. The total costs of rent and mortgage payments are generally lower than the cost of buying the same home outright. Generally after living in the property for a year you are able to "staircase" i.e. purchase further shares in the property thus reducing your rent payments and eventually if you wish purchase all the remaining shares in order that you own 100% of the property.

  • SIPPS
    Self Invested Personal Pension Schemes – advice from expert financial advisers and accountants is required in relation to these.

  • Stamp Duty
    a tax imposed by the government on all property purchases over £125,000

  • Survey
    A review of the physical qualities of the property (see Caveat Emptor). Will enable objective review of the needs for repairs for example before the buyer is committed to the contract.

  • Title Deeds
    the evidence of legal ownership of land, increasingly changed to electronic only format at the Land Registry.

  • Vacant Possession
    A normal term of a contract of purchase for a property. The sellers must have vacated the premises before the purchase can be completed.

Whatever your legal query, Franklins Solicitors have the know how to help guide you through the maze of life.