Glossary

Absolute title is the best of four classes of title which Land Registry can allocate to freehold or leasehold land.

This arises when an occupier takes possession of and occupies land without permission of the owner. If he does this for over 12 years, he may be able to lay claim to a possessory title to that land by virtue of his adverse possession of it. There are strict legal requirements as to precisely what will constitute adverse possession.

See ‘Contract’.

A person who is entitled to the proceeds of sale of a property for his own benefit, i.e. does not hold them on trust for someone else.

‘Let the buyer beware’. It is for a buyer to make sure of his bargain.

A financial debt or liability affecting property.

Includes items of personal property, such as furniture and moveable goods.

The date inserted in an agreement for sale as being the date upon which the transaction is to be concluded, i.e. the moving date.

An agreement or bargain between two or more parties. A contract is also referred to as an agreement for sale. All contracts for the sale of an interest in land must be in writing. The contract must also contain all the terms which the parties have agreed between them (or refer to any supplemental documents which contain any other agreed terms).

A contract race will arise where a seller decides to deal with more than one prospective buyer, with a view to exchanging contracts with whichever buyer is ready to do so first.

The process by which an interest in land is conveyed or transferred from one party to another.

An agreement or promise contained in a deed by which a party binds himself to do, or to refrain from doing, something.

A policy of insurance to protect the owner and/or mortgage lender against a defect in title, on the terms set out in and up to the financial limit specified by the insurance policy.

The sum (normally 10% of the purchase price), payable by a buyer on exchange of contracts. It acts both as part payment of the purchase price and an incentive for the buyer to complete the transaction on the completion date, failing which it may be forfeited by the seller. See also “Exchange of Contracts”.

An expense over and above the conveyancer’s legal fee, e.g. search fees.

A right to use one piece of land for the benefit of another piece of land. For example, a house owner may have a right of way over his neighbour’s land to reach his own house.

The signature copy of a legal document.

A right or interest in property which is founded not in law, but in equity. For example, although a property may be registered in the name of the husband, i.e. so he is the sole legal owner of it, his wife may, nevertheless, have an equitable interest in it.

The physical exchange of contracts which must take place in order to bring a legally binding contract for the sale and purchase of land into existence. Up to this point a property is said to be “sold subject to contract”.

The act of signing a document with all necessary formalities.

Fixtures are items in a house or on land which, at law, are considered to be or have become part of it. Items which are physically attached, such as fixed shelving or fitted cupboards are usually fixtures. Moveables or items that are not fixed are usually referred to as fittings.

A part of a freehold property which lies directly over land belonging to someone else and which gains structural benefit from doing so, e.g. where part of an upper floor room is built over part of a neighbour’s ground floor room.

An estate in land which usually lasts forever.

The owner of a freehold interest in land.

The annual rent payable in return for a lease of land.

A document by which a landlord grants a tenant the right to occupy property for a fixed period.

Property which is held under a lease.

The tenant under a lease or letting agreement.

The landlord under a lease or letting agreement.

A deed by which a borrower charges his property as security for the repayment of a loan.

The mortgage loan.

A set of papers sent to a conveyancer by a mortgage lender to confirm the terms upon which the conveyancer may proceed to act in connection with the mortgage or loan.

The formal offer of mortgage issued by a mortgage lender to the borrower.

A lender who advances money which is secured by a mortgage.

A Mortgagee who has taken possession of a property (usually because the borrower has fallen into arrears with his repayments) in order to enforce his security i.e. to sell the property and discharge the mortgage debt.

A borrower who enters into a mortgage on his property in order to provide security for the loan made to him.

A shortfall between the value of a borrower’s property and the amount outstanding under the mortgage.

A notice given by a landlord to his tenant (or by tenant to landlord) to bring the lease or letting agreement to an end.

A nominal rent.

Forever.

One of the classes of title Land Registry may approve. Often approved when the owner claims to have lost the title deeds, or to have acquired title by adverse possession. A possessory title means that the title is subject to any adverse interests which exist at the date of registration, e.g. the claims of the true owner.

The sum of money required to repay or redeem a mortgage.

A statement supplied by a mortgage lender showing the amount required to redeem a mortgage as at a particular date, e.g. the completion date.

A covenant which restricts the use of land in some way.

A right of first refusal, i.e. the owner has agreed not to sell the property in question without first offering it to the person who has this right.

A regular payment made by a tenant in return for work done by the landlord, often repair and maintenance, or for the provision of other services.

A tax payable on the conveyance or transfer of an interest in land or property assessed in accordance with prevailing HMRC thresholds.

A statement made in writing and declared before a person who has authority to administer it, e.g. a solicitor, commissioner for oaths, notary public.

A subsequent owner of the property.

Claim to ownership of land.

The deeds and documents which provide evidence of a person’s right or title to an interest in property. Nowadays, all such interests must be registered at the Land Registry following completion.

The unique reference number allocated by the Land Registry to each registered title or interest in land.

The document which transfers title to a new owner.

A promise or contract to do something. Conveyancers often give undertakings in the course of a conveyancing transaction and can be called to account for any failure to comply with them.

Mentors

Glossary of Terms often used in Conveyancing

Term

Definition