The following A-Z guide is designed to assist anyone who is about to buy a home. It expresses the financial terminologies that are needed during the transaction process. This guide explains some terminologies popularly known in the property management sectors and for the financial transactions
This is the term used to explain the sum of money lent to you by a bank or other building society to buy your home.
A bank draft is a draft obtained from a bank, signed and authorized by the bank manager or one of the authorized bank officials. Usually, this bank draft is not usually signed by the customer except by one of the designated authorities of the bank and stands a chance to be treated as cash.
This is a type of loan usually arranged for a short time use. This type of loan comes from a designated bank authority and sometimes, it can be gotten from a building society.
Charge: This is used as an entity for Land Registry Title showing a property being used as collateral either for a loan or a mortgage.
Collateral: It is also called security. This is a property used as a guarantee or insurance policy of repaying a given loan.
This is when necessary documents are transferred or handed over to the buyer from the seller to show ownership of the house has been delivered to the buyer.
Deeds are legal documents relating to properties.
A portion of the price paid by the buyer to the seller in exchange for a particular property is called Deposit
E- Energy Performance Certificate (EPC)
Energy Performance Certificate: This is a valid certificate provided by any property seller in Wales and England giving details about the energy efficiency of the property in question.
E-Exchange of contract
Exchange of contract is a legally signed binding that seals a contract between the buyer and the seller. So when this contract has been exchanged between the vendor and the buyer, it’s called Exchange of contract.
Execution simply means when all property related documents are signed, sealed and delivered in the presence of a witness.
Is the absolute ownership of land or property and any property which remains on the land.
When a rent is paid as required under the terms and condition of the lease at a particular time.
A place where one lives permanently, especially as a member of a family is called a home.
Interest-only mortgage: When only the interest of a home loan is paid throughout its term to the lender.
An official government office which registers and maintains all details of land ownership and any changes relating to property ownership.
Land certificate: It is an issued certificate given by the Land Registry as confirmation of proprietorship or ownership.
Lease: Is usually a document where the terms of ownership of property are recorded.
Lessor: Is an organization or person who grants the lease.
Mortgagor: A mortgagor is a borrower
It is a written document containing all the terms and condition applied used to lend money on a property
N-National House Building Council (NHBC)
National House Building Council (NHBC): Is an organized council from which new homes built in the United Kingdom gets their insurance-backed warranties.
The loan for determining the interest over the terms and condition of the mortgage.
When something belongs to someone legally, it remains a property of the person.
When a new home has a fully completed roof, it is said to be called Roofed In
This is an act of selling something or property.
These are usually asked questions by a solicitor about an available property and the condition of the land at which the property is built for a potential buyer.
Title deeds are legally produced documents, stating the rights and proof of ownership to the property.
A title is a legal document that describes the ownership of the property.
Under offer: This happens when a seller receives an offer for an available property without any real financial commitment yet.
A vendor is a property owner who is ready to sell.