Glossary of Terms
| Contract of Sale | The contract between the buyer and seller containing details of the purchase price, terms and conditions necessary to enable ownership of the property to be transferred to the buyer. |
| Completion date | This is the date you will move. |
| Deposit | The contract provides for a 10% deposit to be paid on exchange. However, a lesser deposit can be agreed upon if a higher % mortgage is obtained. We will require evidence to show where the deposit is from such as a bank statement. Further information is provided below in our money laundering section. |
| Disbursements | Additional expenses for things such as search fees, Land Registry fees, stamp duty land tax, etc. |
| Duty of care | A duty to do everything reasonably practicable to protect others from harm. |
| Electronic funds transfer | Also known as a CHAPS payment, it provides same-day fund transfers. The fee for this payment will include a charge by the Bank to us together with our administration fee for the work involved in making sure that the payment is made securely. |
| EPC | Energy Performance Certificates, are the Government’s chosen way of complying with the Energy Performance of Buildings Directive. Its purpose is to record how energy-efficient a property is. |
| Estate | Everything you own; all of your assets (whether real property or personal property) and liabilities. |
| Exchange of contract | The point in time when the seller and buyer are both legally bound to go ahead with the transaction and the completion date is agreed. |
| Guarantees | Such as damp-proof courses, timber treatments, window replacements, etc. The existence of a guarantee does not necessarily mean it is valid; you should make enquiries directly to the company issuing the guarantee to ensure that it is valid and transferable. |
| Independent witness | An independent witness is a person: – Who is not your spouse or relative – Who is over 18 years of age – Who is not or will not reside at the property – Who does/will not have an interest in the property – Who does/will not have an interest in the proceeds of the mortgage – Who is not an employee of the lender. |
| Land Registry | The body responsible for recording details of land ownership in England and Wales |
| Legal fees | The professional fees and charges to be paid for legal assistance provided by a lawyer. |
| Mortgage redemption | The amount required to pay off the outstanding balance of a mortgage. |
| Mortgage offer | A formal document drawn up by a mortgage lender detailing the terms by which the loan is agreed. |
| Report | This document is prepared by us and will contain details of the title to the property, search results, mortgage offer conditions, contract terms, etc. |
| Stamp duty land tax | A tax imposed on land and property transactions. This only applies to properties that exceed the current tax-free threshold set by the government. |
| Forms of ID | The documents listed on the enclosed are acceptable forms of identification to enable us to comply with the Money Laundering Regulations 2007 as amended by the 2012 Regulations and The Proceeds of Crime Act 2002. |
| Transfer Deed | This is the formal Land Registry document which transfers title to a property from a seller to a buyer. |
