As a first time buyer, you’ve probably heard a great deal of brand new terms and phrases being thrown at you. Along with the many perks of buying your first home, the process can be a confusing and stressful one; that’s why it can help if you understand the terms used by your conveyancer.
We at Enact want first time buyers to feel comfortable with their purchase, which is why we have put together a list of the most common terms used in the conveyancing stages.
Official Copies
The Land Registry allocate a title number for every piece of land or property which is registered with them. An Official Copy is a copy of the register relating to a specific title number and it contains all the information relating to land ownership, so who owns the land, what mortgages there are on it and what other rights of way or covenants affect the land.
Indemnity policy
Sometimes when purchasing a property you might come across a legal issue which may take a long time, or which may even be impossible to fully resolve, for example, if one of the title documents was missing. Indemnity policies are a type of insurance that can be used to protect against the risk caused by the legal issue. First time buyers and other homebuyers can purchase policies for a one-off fee, however usually the cost of such a policy would be met by the seller.
Covenants
These are the obligations and/or restrictions which are attached to the house. These can usually be found in the Official Copies. For example, it may be the responsibility of the homeowner to maintain a wall or other boundary on the property’s grounds.
Enquiries
As part of the conveyancing process, the buyer’s conveyancer will raise questions about the buyer’s intended property, based on their review of all the title documents and property searches. These questions are referred to as ‘enquiries’, and depending on how complicated the transaction is will hinge on how many enquiries are raised, and how long it takes the seller’s conveyancer to answer them.
Planning permission
Planning permission is a consent given by the Local Authority to allow land to be developed. Planning permission would be required to develop a site of new homes but it is also often required for home improvements and extensions, for example an extension to an existing property. It’s always a good idea to carry out research in to what consents are required before altering your home and the Govenment’s planning portal is a great resource to check in this respect.
Building approval
Building regulations approval is required to construct certain structures to your new home, such as adding an extension. This work can also include alteration projects such as replacing fuse boxes or connected electrics, replacing windows or doors or installing a new bathroom that will involve plumbing.
Disbursements
These are the costs a conveyancer must pay on the first time buyer’s behalf. These include Land Registry Fees and Stamp Duty.
Exchange
The exchange of contracts is a crucial part of any conveyancing process, it is the moment when the two parties become legally bound to complete the deal. This takes place once everyone is ready and a completion date is then fixed.
Memorandum of Sale
Issued by the estate agent, a Memorandum of Sale details the sale, including how much the property was sold for, who sold it and the name of the conveyancer or solicitor acting on behalf of the buyer/seller.
