McGlennons Solicitors - Glossary of Conveyancing Terms

Office Copies - these are official copies of the Land Registers sent to the Buyer’s solicitors to prove the Seller’s title to the property.

Land or Charge Certificate - this is the document formerly issued by the Land Registry to the proprietor of land showing his or her ownership of it. Commonly they are known as the deeds. If you have a mortgage then the Charge Certificate will be kept by your mortgagee. Since October 2003 no further Land or Charge certificates have been issued, merely a printout of the register. This is because on-line access to the Land registry is readily available.

Lease - where there is more than one property on the same piece of land, such as with flats, the title to the property is held under a lease which sets out the rights and responsibilities of the person owning the lease, called the lessee.

Local Search - a search of the local authority records which will reveal such things as planning decisions on the property, whether it is a listed building or in a conservation area or smokeless zone. Very importantly, it does not give details on planning applications for neighbouring buildings.

Water & Drainage Search – this search reveals such things as whether the property’s drains are connected to a public sewer and mains water supply.

Energy Performance Certificate – this is a certificate that provides a measure of the property’s energy efficiency and its impact on the environment. It includes suggestions of ways this impact can be reduced.

Property Information Form - this is the form completed by the Seller with help from his or her solicitor which gives comprehensive information about the property for the Buyer.

Fittings and Contents Form - this is a form completed by the Seller setting out what will be left in the property and what will be taken.

Contract - the document setting out the price and terms upon which a property will be bought. It is in two identical parts, one signed by each of the Buyer and Seller.

Exchange of Contracts - exchange of contracts is when both parties solicitors decide that the contract shall become binding and a date is then set for completion of the transaction. The contracts signed by each party are physically exchanged. A deposit of usually 10% (but sometimes 5%) is paid at this point.

Land Registry Search - this is done after exchange of contracts by a Buyer’s solicitor to check that nothing has been added to the Land Registers since office copies were produced and to ‘freeze’ the Register in the Buyer’s favour for 30 days.

Bankruptcy Search - as it is an offence for a bankrupt to obtain credit, if a mortgage is involved, such a search is done against the names of the Buyer by the Buyer’s solicitors.

Legal Transfer - this is the document which actually transfers the legal title to the property from one person to another and is signed shortly before completion.

Completion - this is the day when the legal title to the property passes from one person to the other and the balance of the price is paid. The Seller usually moves out on or before completion and the Buyer can then move in to his or her new property.

Mortgage - sometimes also called a Legal Charge, this gives someone who has lent a Buyer money against the property the right to repossess and sell the property if the mortgage payments are not kept up.

Stamp Duty Land Tax - this is a tax on land transfers levied by the government and paid by the Buyer. It is only payable usually on transfers above £125,000 and is levied at 1%. For properties in excess of £250,000 it is 3% and for those in excess of £500,000 4%. Further elements of stamp duty land tax may be payable on the grant of a new lease. First time buyers are exempt from the tax unless purchasing a property in excess of £250,000.

CHAPS Transfer - on the day of completion the balance of the purchase price is paid by transfer of funds between solicitors clients accounts by electronic transfer. CHAPS means Clearing Houses Automated Payment System.

Land Registry Fees - these are the fees paid to the Land Registry to register a transaction with them. They will issue a new set of land registers in your name at the end of a transaction.

Identification – To comply with the Money Laundering Regulations 2007 and anti-terrorist legislation in any transaction involving large sums of money, such as conveyancing, we will be obliged to ask for identification. Usually a copy of your passport certified by a solicitor and a recent utility bill will have to be produced to us when returning quotation letters.