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Jargon Buster

Shared Ownership Information

We understand that some of the language that you’ll come across when buying a So Resi home or any home can seem daunting at first, so we have put together a list of words and phrases that you might come across. Remember if you are unsure about anything the So Resi team are on hand to help you along the way. 

 

Adoption
Where a developer enters into an agreement with a highway or local authority to construct roads, footpaths, sewers and open spaces in line with the authority specification, so that the authority will eventually take themm over and maintain them at no cost to the residents.

Bankers Draft
A type of cheque that is supplied and guaranteed by a bank.

Charge
A charge can be placed on a property when money is owed. The property is then used as security against the debt.

Charge Certificate
A document issued by the Land Registry where there is a mortgage on the property. If there is no mortgage on the property, it is called a Land Certificate.

Cleared Funds
Money that is ready to be used. So your solicitor can exchange contracts, they must hold your funds in a way that they can use immediately, such as cash or a banker’s draft.

Client Account
The Estate’s Agents Act 1979 says that a solicitor has to hold your deposit in a special bank account until contracts have been exchanged. This kind of account is called a client account.

Commission
If you are selling a property, your agent will charge commission, usually based on a percentage of the selling price.

Commonhold
This is a new type of property ownership which allows freehold ownership of units in a building or estate. Those parts of land which are not held as units are held as common parts owned and managed jointly by the unit holders through a commonhold association.

Communal areas
Also called shared areas, these are internal part of a building or external parts of the development, which are used by two or more of the residents.

Completion
The point at which the buyer becomes the legal owner of the property. Legal completion is handled by the solicitors of both the buyer and seller.

Completion statement
The seller’s solicitor prepares an account setting out how much money the buyer owes at completion. The deposit and any other money already paid is deducted from the amount.

Compulsory Registration of Title
The sale of every property in England and Wales must legally be registered by the Land Registry

Contract
A legally binding document between the buyer and seller, outlining the terms of the sale.

Conveyance
The process of transferring ownership of a property.

Conveyance plan
A plan showing the legal boundaries of your property and the ownership of those boundaries. It also details easements and rights of way that may affect the property.

Covenant
A promise in a legal document.

Curtilage
The land inside the boundaries of a property.

Deeds
All legal documents relating to a property since the time it was built.

Deposit
A percentage of the purchase price – usually 10% – which he buyer pays when contracts are exchanged.

Draft contract
The proposed terms of the sale set out by the seller’s solicitor for the buyer’s solicitor to approve.

Exchange of contracts
When two identical documents confirming the terms of sale are signed by the seller and the buyer.

Final survey
Once legal notice to complete is served, some lenders instruct a survey before making funds available. Not since new rules were introduced by the Council of Mortgage Lenders.

Freehold
Outright and absolute ownership of land and the property that stands on it.

Full structural survey
A detailed examination of a property’s structure.

IFA (Independent Financial Advisor)
Someone who is qualified to advised on a wide range of mortgages.

Land Certificate
Issued by the Land Registry, this sets out what the property is, the name of the current owner and any other information affecting the property.

Land Registry
The government department responsible for listing all properties in England and Wales with registered titles. 

Leasehold
Where a property is built on land owned by someone other than the owner of the property on it. A leaseholder has the right to occupy the property for a fixed term set in the ease.

Local searches
A buyer’s solicitor asks the local council for information that could affect the enjoyment/resale of the property – for example, the planning of new roads, hypermarkets and other developments.

Mains services
Water, gas, electricity and drainage services connected to the property.

Managing agent
A company appointed by Thames Valley Housing to manage the shared services and day-to-day running of a development.

Mortgage
A secured loan taken out to buy a property and paid back within an agreed timescale.

Mortgagee
The bank or building society that lends the mortgage money.

Mortgagor
The person borrowing money to buy a property.

Mortgage valuation
A report by the mortgagee that values a property to help decide how much can be borrowed.

Notice period
Developers usually can’t give a confirmed date for finishing the building work when contracts are being exchanged, so Thames Valley Housing exchanges with an agreement to give the buyer notice of when completion is due. The length of the notice period is set in the contract.

Preliminary enquiries
Questions the buyer’s solicitor asks when they receive the draft contract.

Registered title
A Land Registry guarantee of ownership.

Restrictive covenant
A restriction the seller of a property sets on future use of the land.

Retention
An amount of money held back by the building society or solicitors until certain works are done.

Section 104 Agreement
A section of the Water Act that lets a developer arrange for sewers to be adopted by a water authority.

Section 38 Agreement
A section of the Highways Act that lets a developer arrange for roads and footpaths to be adopted by a highway authority.

Section 106 Agreement
An agreement under the Town and Country Act 1990, usually between a developer and local authority.

Service charge
Residents of a development pay this for maintaining communal parts such as gardens and hallways.

Shared ownership
It helps make home ownership possible for people who cannot afford to buy a home outright. It is available through housing associations. Some schemes are backed by the government and others are privately operated. You start by buying a share – usually between 25% and 75% – of the market value of a property with a mortgage. You make a payment on the share of the property that is owned by the housing association. So Resi provide shared ownership homes.

Sole agents
When just one estate agent is appointed to sell a property, they are called the sole agent. The property can stil be sold privately as long as another estate agent is not involved.

Solicitor’s undertaking
A personal guarantee signed by a solicitor undertaking to do something.

Stamp Duty
This is a government tax that a buyer pays on completion.

Subject to contract
When a sale is agreed, but before contracts are exchanged. It is not legally binding for the buyer or the seller at this stage.

Sustainable development
A development designed to help give people who live there a good quality of life, without compromising the quality of life of future generations.

Telegraphic transfer
A legal document transferring ownership of a property to the buyer. The title of the property is registered at the Land Registry.

Vacant possession
When a property is empty upon legal completion.

Vendor
The seller of a property.

 

 

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