Buying and selling a home can often be a stressful process, and the plethora of unfamiliar property jargon that buyers and sellers are faced with can make the whole affair far more confusing than it needs to be.
Here’s a quick list of some of the most common buying and selling jargon, with explanations of what to these terms mean to make the process easier.
A – Appraisal
An agent visiting a property and establishing its value by taking into account factors such as size, quality, and location.
B – BTL
Buy-to-let, purchasing a property specifically to let it out.
C – Chain
When the sale of a property is dependant upon the purchase of another property by the vendors.
D – Deeds
These are the legal documents that assign ownership of the property.
E – Equity
This refers to the difference between the amount of mortgage that is owed and the value of the property.
F – Freehold
Full ownership of the property and the land on which it is situated, entitling the owner to make any changes to the building that they wish subject to normal laws and regulations.
G – Gazumping
An instance where a seller accepts an offer from a buyer, only to reject it later for a higher offer.
H – HMO
A property that is rented out by at least three people who are not from one household, but share communal rooms, also referred to as a ‘house share’.
I – Instruction
A term to denote when a vendor has told an estate agent to market their property.
J – Joint Mortgage
When more than one person is responsible for the mortgage.
L – LTV
Loan-to-value, the percentage of a mortgage loan amount in relation to the purchase value of the property.
M – Maintenance Charge
The fee that is paid in regards to the general upkeep of a leasehold property to the landlord.
N – Negative Equity
When the value of the property is less than the sum owed on a mortgage.
O – OMV
Open-market-value, this refers to the sale value that a property can achieve in the open market when both buyers and sellers agree.
P – Public Liability Insurance
This insurance provides indemnity against death or injury to anyone in or around your property.
R – RTB
Right-to-buy, this provides the right for a tenant who has lived in a council property to purchase it at a discounted rate.
S – Stamp Duty
A government tax paid by the buyer for the purchase of the property on completion of the sale.
T – Transfer Deeds
A document from the Land Registry which transfers the legal ownership of a property from seller to buyer.
U – Under Offer
This refers to the period in which the seller has accepted an offer on their property, but the contracts have not yet exchanged meaning that the property is not yet sold.
V – Vetting
This is the process of conducting background checks on potential buyers and sellers, particularly in regards to Anti Money Laundering regulations.
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Source – Housenetwork – link (2016)