Glossary of Terms
We know that some of the terms and expressions you experience when buying a home can be confusing, especially for first time buyers. To help you understand your house buying journey, we've put together a brief glossary of terminology that you'll probably encounter.
It's not exhaustive, but of course your sales advisor is always on hand to provide you with a personal explanation of the purchase process and your solicitor will also be able to advise you on the legal aspects.
Bridging Loan
A loan that literally bridges the gap in the event of a delay in the sale of your existing home and the purchase of your new home.
Buildmark
All Cruden homes are covered by a warranty. If NHBC (National House Building Council) is the warranty provider the cover is known as Buildmark. This is a 10 year warranty and details of the cover will be provided to you by both your sales advisor and solicitor.
Conclusions of Missives
When missives are concluded both the buyer and the seller are legally bound to complete the transaction.
Conveyancing
The legal process of transferring the property title from one person to another.
Covenant
A binding condition affecting the property.
Deeds
The legal documentation relating to the property.
Deposit
A part payment of the purchase price which is due for payment by the buyer on conclusion of missives.
Disposition
A legal document which transfers ownership of a property to the buyer.
Energy Performance Certificate
An Energy Performance Certificate - not required for new build properties but a mandatory part of the Home Report required by sellers of second hand properties.
Land Certificate
A certificate issued by the Land Registry as proof of ownership.
Land Registry Fees
This fee is to register ownership of your property with the Land Registry. The fees are fixed by the Government.
Local Authority Search
This search conducted by your solicitor will establish if your new home is likely to be affected by any Planning decisions or other proposals.
Factor
A management company appointed to maintain the main structure and common and landscaped parts of apartment buildings. Factors may also be appointed to maintain roads, footpaths, street lighting and open spaces on other types of developments if these areas are not adopted by the local authority. The factor apportions costs amongst each owner for these services.
Missives
A legal contract exchanged by the seller and the purchaser.
Mortgage
A type of loan provided by a bank or building society to facilitate a property purchase.
Mortgagee
The lender
Mortgagor
The borrower
Mortgage Protection Policy
An insurance policy that ensures that the loan is paid off in the event that the borrower dies before the end of the mortgage term. Policies can also be tailored to include protection in the event of illness or redundancy.
Mortgage Valuation Survey
Your lender will insist on a mortgage valuation report by a chartered surveyor prior to approving your loan.
National House Building Council
An organisation established in order to encourage good working practices within the housebuilding industry through regular spot checks and inspections during the construction process. The NHBC also protects the homeowner by providing a warranty on new homes and offers a Resolution Service to assist in disputed customer care matters.
Searches
The process of investigating any actual or planned adverse effects relating to a property.
Settlement
Settlement is the actual day when you become the legal owner of your new home. At this time, the purchase price will be transferred to Cruden Homes' solicitor and your solicitor will receive the Title Deeds to your new property.
Stamp Duty
Stamp Duty Land Tax is payable on all homes with a purchase price of over £125,000. The amount you will have to pay will be based upon the purchase price of your home.
Sold Subject to Conclusion of Missives
Sold Subject to Conclusion of Missives means that a property has been reserved but the legally binding paperwork is not yet complete.
Title
The rights and liabilities relating to the property.
Title Deeds
Legal documents that describe the rights and liabilities relating to the property and prove ownership of property.