If you are like me and you are looking for a property to buy, then you have probably called estate agents registering your details for potential properties that come on to the market. They will have asked you about the upward chain, solicitors and an agreement in principle. We understand that the language can be confusing, so we’ve decided to write a short glossary, making the whole process a lot smoother!
Seller – The seller is the name given to the owner of the house
Agreement in Principle – This is the document that you receive after you have filled in a mortgage application online. The agreement in principle basically shows how much you could potentially borrow from the bank. Therefore this will be part of your proof of funding, something the estate agent will ask for when making your offer.
Conveyancing– This is the process of transferring the legal title of the property, from one person to another. For this process, a solicitor will be required and they will be able to act on your behalf. This covers all the legal work needed for buying and selling a property.
EPC – This stands for Energy Performance Certificate, this document measures the energy efficiency in a property. It is scored by A – G (A is the most efficient and G is the least). To market your property, the property must have a valid EPC and the certificates are valid for 10 years.
Freehold – you own the property and the land that the house is sitting on.
Leasehold – you own the property, but not the land that it is built on. This will require ground rent to be paid to the landlord/agent.
Exchange of contracts – This means that the sale becomes legally binding. However if either party were to withdraw from the sale, there will be financial penalties.
Completion – The legal transaction is now complete, the documents and monies have now been transferred and the keys can be released.
If you have any questions or you would like advice on the buying, selling or renting your home, give the office a call on 01902 244200 and speak to our friendly team today!
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