Bridging Loan: A Bridging Loan is your financial safety net when there’s a mismatch in the sale date of your existing home and the purchase date of your new one. It acts as a short-term loan until your mortgage kicks in.
Buildmark: A Buildmark warranty provides a decade-long insurance cover for your newly-built home. It’s backed by the National House Building Council (NHBC), safeguarding your investment.
Completion: Completion signifies the ultimate step in your home buying process, where all the funds are transferred, and you officially gain legal ownership of your property.
Contract: A contract between the seller and the buyer becomes legally enforceable once it is signed by both parties and the agreed deposit is handed over to the solicitor.
Conveyancing: Conveyancing is the legal mechanism that transfers property ownership from the seller to the buyer.
‘Navigating Property Legalities’
Covenant: A Covenant is a set of conditions or restrictions that come with the property and must be adhered to.
Deeds: Deeds are the legal papers that collectively represent all pertinent information related to the property.
Deposit: A Deposit is a partial upfront payment of the property price, usually paid upon contract exchange.
Disposition or Feu Disposition: In Scotland, the Feu Disposition is the legal document that confirms the transfer of property ownership to the buyer.
Energy Performance Certificate: Required by law, this certificate provides a comprehensive overview of your property’s energy efficiency ratings.
‘Contracts and Ownership’
Exchange of Contracts: This is when two identical contracts, one signed by the seller and another by the buyer, are exchanged, legally binding both parties to the deal.
Freehold: Freehold signifies your complete ownership of both the property and the land it occupies.
Ground Rent: For Leasehold properties, a Ground Rent is an annual fee paid to the Freeholder.
Home Report: This report is mandatory when selling any property in Scotland.
Insurance: Your mortgage advisor will guide you through the necessary insurance policies, covering both your property and its contents.
‘Financing and More’
Land Certificate: This government-issued certificate serves as your definitive proof of property ownership.
Land Registry Fees: Paid to the government through your solicitor, these fees confirm your property’s registration with the Land Registry.
Leasehold: Leasehold refers to owning a property for a specified number of years, decades or centuries. An annual Ground Rent is typically paid to the Freeholder.
Local Authority Search: Your solicitor conducts this search to determine if your property may be affected by any upcoming planning decisions.
Management Company: For apartments, a Management Company takes care of maintaining common areas like hallways, stairs, and sometimes even roads and street lights.
‘Essential Documentation and Due Diligence’
Missives: In Scotland, Missives refer to the exchanged letters during the property offer and acceptance stage.
Mortgage & Related Terms: Most buyers will require a mortgage, which is a loan for purchasing a house. The lender (Mortgagee) provides the loan to the borrower (Mortgagor), often requiring additional security like Mortgage Indemnity Insurance.
National House Building Council: The NHBC is a not-for-profit organisation that oversees the quality of new home constructions, offering a 10-year Buildmark warranty.
Registered Land: Land registered with the Land Registry assures legal ownership.
Searches: This is the process of ascertaining any current or future issues affecting a property.
‘Final Steps and Future Planning’
Settlement: In Scotland, Settlement refers to the final transaction stage where all property-related documents and payments are finalized.
Stamp Duty: This is a tax imposed on property purchases, which your solicitor will handle for you.
Sold Subject to Contract: This means that the property sale is proceeding but has not yet been legally finalised.
Title & Deeds: The Title represents the legal rights and responsibilities that come with property ownership, as detailed in the Title Deeds.
Will: Owning a home should prompt the creation or revision of your Will to ensure your estate is managed according to your wishes after your demise.