Draft Contract Package
This is the initial information sent by a seller’s solicitor to the buyer’s solicitor. It will consist of two copies of the draft contract or agreement, office copy entries, property information forms, guarantees, copy planning permissions and other useful documentation. The more comprehensive the initial package the fewer additional enquiries the buyers solicitor will need to make.
Exchange of Contracts
This is the moment the solicitors acting for the buyer and the Seller agree that the contract is legally binding. When contracts have been exchanged you cannot withdraw without incurring financial penalties.
HM Land Registry
This is a Government body which keeps Registers of property in England and Wales. Registration of a sale or purchase of land is now compulsory.
Land Registry Fee
This is a fee charged by HM Land Registry on changing the registration of the property into a buyer’s name.
Local Search
This is a search made through the local authority, which reveals matters such as planning permission, tree preservation offers, adoption of roads and sewers etc.
Memorandum of Sale
This document is prepared by the estate agents at the outset of the transaction. It sets out details of the buyer, seller and their respective solicitors, the price and any additional points agreed between the parties.
Mortgage Offer
In this context the mortgage offer is a formal offer from your intended lender specific to the property you are buying. Many lenders issue an agreement in principle initially to confirm how much they would be prepared to lend you when you find a property but this is subject to survey and other relevant checks which will vary from lender to lender.
Mortgage Deed
This deed secures the borrowing from your mortgage lender against the property.
Office Copy Entry
Official copies of your title deeds obtained from HM Land Registry.
Property Information Forms
Forms completed by the seller which make up part of the Draft Contract Package. They contain information about the property and its history.
Stamp Duty
This is a tax imposed on all property over £120,000. It is payable by the buyer. I.e. if you are selling a property the buyer pays stamp duty on the property you are selling and you pay stamp duty on the property you are buying.
Title Deeds
These are basically the evidence that you own the property. They are held by your lender if you have a mortgage.
Telegraphic Transfer
This is a method of transferring money using the Electronic Banking System. It means the receiver receives cleared funds within an hour. It is sometimes referred to as CHAPS (Clearing House Automated Payment System)
Transfer
This document transfers ownership of the property from the seller to the buyer.
