Glossary of terms

Cruden - Glossary of terms


Some of the terms and expressions you encounter when buying a home can be confusing to say the least, especially for first time buyers. It’s important to us that every step of your journey is clear and understandable. So we've put together a brief glossary of terminology that you might come across.

Remember: Your sales adviser is always there to help you with a personal explanation of the purchase process and your solicitor will also be able to advise you on any 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
Buildmark is a 10-year warranty and both your sales adviser and solicitor will provide you with details of the cover. (All Cruden homes are covered by a warranty.)

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 (EPC)
An EPC aimed at helping you identify ways you could save money. (Not required for new build properties but a mandatory part of the Home Report required by sellers of second hand properties.)

Land Certificate
Paperwork that certifies proof of ownership. Issued by the Land Registry.

Land Registry Fees
Fees fixed by the Government that register ownership of your property with the Land Registry.

Land and Buildings Transaction Tax (LBTT)
LBTT replaced UK Stamp Duty Land Tax (SDLT) in Scotland on April 2015. LBTT is a progressive tax that’s payable on all property purchases over a certain price threshold..

Local Authority Search
A search conducted by your solicitor that establishes 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, common and landscaped area of apartment buildings. Factors may also be appointed to maintain roads, footpaths, street lighting, and open spaces on other types of developments if the local authority is not already responsible. 

Missives
A legal contract exchanged by the seller and the buyer.

Mortgage
A type of loan provided by a bank or building society to facilitate the purchase of a property.

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.

Completion
Completion is the day you become the legal owner of your new home - it is also known as Settlement in Scotland.

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 prove ownership of the property and outline the rights and liabilities relating to the property.