Jargon Buster

A

Absent Freeholder

A freeholder who cannot be located or contacted. This can make matters such as obtaining consent, extending a lease or dealing with management issues more complicated, although legal procedures are available in some circumstances.

Absolute Title

The strongest class of registered title normally granted by HM Land Registry. It confirms that the registered owner has good title to the property, subject to matters shown on the register.

Adverse Possession

The process by which someone who has occupied land belonging to another person for a sufficiently long period may, in certain circumstances, apply to become its registered owner. The rules differ significantly depending on whether the land is registered or unregistered.

Agreement in Principle (AIP / DIP / MIP)

An indication from a mortgage lender of how much it may be prepared to lend based on initial information about the borrower. Also called a Decision in Principle or Mortgage in Principle, it is useful when making an offer but is not a formal mortgage offer.

Annual Percentage Rate of Charge (APRC)

A figure designed to show the overall annual cost of a mortgage, taking account of the interest rate and certain fees over the assumed term. It can help compare mortgage products, although the actual cost will depend on how long the mortgage is held and whether rates change.

Article 4 Direction

A planning direction made by a local authority or the Secretary of State which removes specified permitted development rights in a defined area. It does not necessarily prevent development, but means planning permission may be required for work that would otherwise have been permitted development.

Asking Price

The price at which a property is marketed for sale. It is a marketing figure rather than a guarantee of the amount the seller will accept or the property's eventual sale price.

Assured Periodic Tenancy

The principal form of assured tenancy in England's private rented sector from May 2026. It runs on a periodic basis rather than for a fixed contractual term and continues until ended in accordance with the relevant legal rules.

Auction

A method of selling property by competitive bidding. In a traditional unconditional auction, the successful bid normally creates a legally binding contract immediately, so buyers should complete legal and financial checks before bidding.

B

Best and Final Offer

A process sometimes used where several buyers are competing for a property. Each is invited to submit the best offer they are prepared to make, usually by a stated deadline. The seller can consider the buyer's position as well as the price and is not obliged to accept the highest figure.

Boundary

The legal dividing line between adjoining properties. A fence, wall or hedge may indicate the general position of a boundary but does not necessarily establish its precise legal location.

Boundary Dispute

A disagreement between neighbouring owners about the position, ownership, use or maintenance of a boundary. Because these disputes can become expensive and personal very quickly, specialist advice is usually sensible at an early stage.

Bridging Loan

Short-term finance commonly used to bridge the gap between buying a property and receiving funds from another sale or longer-term finance. Bridging can be useful but is usually more expensive than a conventional mortgage and needs a clear repayment strategy.

Building Regulations

Technical standards governing building work in England include matters such as structural safety, fire protection, insulation, drainage and ventilation. Building Regulations approval is separate from planning permission and some projects require both.

Building Survey

A detailed inspection of a property's construction and condition, often recommended for older, altered, unusual or visibly defective homes. It is generally more comprehensive than a standard mid-level home survey.

C

Capital Gains Tax (CGT)

A tax which may be payable on the gain made when disposing of certain assets, including residential property that is not fully covered by main-residence relief. Whether CGT applies depends on the owner's circumstances and appropriate tax advice may be needed.

Cash Buyer

A buyer who can purchase a property without relying on the sale of another property or a mortgage. Cash buyers can sometimes offer sellers greater certainty and a simpler transaction, although the seller may still consider price, timing and other circumstances.

Chain

A series of connected property transactions where one person's purchase depends on the sale of another property. The longer the chain, the more transactions there are whose timing and circumstances can affect everybody else.

Chain-Free

A buyer who does not need to sell another property before purchasing, or a seller whose sale is not dependent on completing an onward purchase. Chain-free transactions can be simpler, although they are not automatically problem-free.

Chancel Repair Liability

An historic liability under which some land can potentially be required to contribute towards repairs to the chancel of a parish church. It is uncommon, but it can still be relevant in conveyancing and may be dealt with by legal investigation or indemnity insurance.

Community Infrastructure Levy (CIL)

A planning charge that some local authorities impose on certain new development to help fund local infrastructure. It most commonly arises with development or substantial alterations and can be relevant when buying a property where building works have taken place.

Completion

The point at which the purchase money is transferred, the sale completes and the buyer becomes entitled to the property. This is normally the day the keys are released.

Completion Date

The date agreed by the parties on which the property transaction will complete. Once contracts have been exchanged, the completion date is normally legally binding.

Completion Statement

A financial statement produced by a solicitor showing the money due and received in connection with a transaction, including the purchase or sale price, mortgage funds, taxes, fees and other adjustments.

Conservation Area

An area designated because of its special architectural or historic interest. Additional planning controls can apply to demolition, alterations, some development and works to trees.

Contract

The legally binding agreement between buyer and seller setting out the terms of the property transaction. In England and Wales, the transaction normally becomes binding when contracts are exchanged.

Conveyancer

A solicitor or licensed conveyancer who carries out the legal work involved in buying, selling or mortgaging property.

Conveyancing

The legal process of transferring ownership of property from one person to another. It includes investigating title, searches, enquiries, mortgage requirements, exchange of contracts, completion and registration.

Covenant

A legally binding promise affecting land or property. Covenants can restrict what an owner may do or require an owner to take specified action.

D

Deed

A formal legal document executed in a particular way. Transfers, rights of way, covenants and variations to property rights may all be created or recorded by deed.

Deed of Covenant

A document in which someone formally agrees to comply with specified obligations or covenants. It is often encountered when buying leasehold property or a home on a managed private estate.

Deed of Variation

A legal document changing the terms of an existing deed, lease or other property arrangement with the agreement of the relevant parties.

Disbursements

Expenses paid by a solicitor to third parties on a client's behalf, such as Land Registry fees, property searches or bank transfer charges. They are separate from the solicitor's own professional fee.

Down Valuation

A valuation from a mortgage lender that places the property’s value below the price agreed between the buyer and seller. This can affect the amount the lender is prepared to advance and may leave the buyer needing a larger deposit, renegotiating the price or reconsidering the purchase.

E

Easement

A legal right benefiting one property over another person's land. Common examples include rights of way, rights to use drains or services, and rights of access for maintenance.

Encroachment

Where a building, structure or use extends onto neighbouring land without the necessary ownership, right or permission. Examples can include a wall, extension, gutter or driveway crossing a legal boundary.

Encumbrance

A general term for a right, restriction, charge or other matter affecting a property, such as a mortgage, covenant, easement or financial charge.

Energy Performance Certificate (EPC)

A certificate rating a property's energy efficiency from A to G and providing recommendations for improvement. An EPC is normally required when a property is sold or let and is generally valid for ten years.

Enquiries

Questions raised by a buyer's solicitor with the seller's solicitor during conveyancing about the property, its title and information supplied by the seller. They can cover anything from alterations and boundaries to guarantees, rights and leasehold matters.

Equity

The portion of a property's value effectively owned by the owner after deducting mortgages and other secured borrowing. For example, a property worth £800,000 with a £300,000 mortgage has approximately £500,000 of equity.

Estate Rentcharge

A charge sometimes imposed on freehold homes to fund the maintenance of private roads, landscaped areas, drainage, lighting or other shared estate facilities. It is different from ordinary leasehold service charge and should be carefully reviewed during conveyancing.

Exchange of Contracts

The stage at which buyer and seller become legally committed to the transaction. Before exchange, either party can normally withdraw; after exchange, failing to complete can have serious legal and financial consequences.

F

Fixtures and Fittings

Items within a property which may or may not be included in a sale. Sellers normally complete a fixtures and contents form confirming what will remain, what will be removed and any items offered separately.

Flying Freehold

A freehold part of one property that physically extends above or below part of another person's freehold property, such as a room above a shared passage. It is not necessarily a problem, but solicitors and lenders will usually consider rights of support, access and repair carefully.

Freehold

Ownership of a property and land for an unlimited period, subject to any mortgages, rights, covenants or restrictions affecting the title.

Freeholder

The owner of the freehold interest. In a block of leasehold flats, the freeholder generally owns the building and land subject to the individual leases.

G

Gazumping

Where a seller accepts a later offer from another buyer after previously accepting an offer but before contracts have been exchanged. Until exchange, an accepted offer is normally not legally binding in England and Wales.

Gazundering

Where a buyer reduces an earlier agreed offer, often late in the transaction, but before contracts have been exchanged. The seller is free to reject the reduced offer.

Good and Marketable Title

A title considered sufficiently sound that a reasonable buyer and mortgage lender can accept it without an unacceptable legal risk. Solicitors investigate title to establish whether this standard can be met.

Ground Rent

A payment traditionally made by some leaseholders to the freeholder under the terms of the lease. Legislative reforms have restricted ground rents in many newer long residential leases, but older leases can still contain significant ground-rent provisions.

Guide Price

An asking-price description intended to indicate the general level at which a seller hopes to attract interest. It does not necessarily represent a fixed minimum or maximum sale price.

H

HM Land Registry

The government body responsible for registering ownership of land and property in England and Wales and maintaining the register of title.

Holding Deposit

A payment that may be taken from a prospective tenant while a proposed tenancy is being progressed. In England, it is subject to statutory limits and rules governing when it must be repaid or may be retained.

Home Survey

A survey commissioned for a buyer to assess a property's condition. Different levels of survey are available, from relatively concise inspections for conventional homes to detailed building surveys for older or more complex properties.

House in Multiple Occupation (HMO)

Broadly, a property occupied by people from more than one household who share facilities such as a kitchen or bathroom. Different definitions and licensing requirements apply depending on occupation and local rules.

I

Indemnity Insurance

An insurance policy sometimes used during conveyancing to protect against financial loss arising from a particular legal defect or uncertainty, such as missing consent or an historic covenant. It generally provides financial protection rather than correcting the underlying issue.

J

Japanese Knotweed

An invasive plant capable of spreading aggressively through underground rhizomes. Its presence does not automatically make a property unmortgageable, but buyers, surveyors and lenders may require specialist assessment and an appropriate treatment or management plan where it is present or suspected.

Joint Tenants

A form of joint ownership where the owners collectively own the whole property. On the death of one owner, their interest normally passes automatically to the surviving joint owner or owners rather than under their will.

L

Land Registry Title

The official registered record of ownership of a property held by HM Land Registry. It typically comprises the property, proprietorship and charges registers together with a title plan.

Land Registry Title Plan

A plan showing the general extent of a registered title. The red edging generally indicates the land included, but it does not usually establish the precise position of a legal boundary.

Lease

The legal document granting the right to occupy a property for a specified period and setting out the rights and obligations of the leaseholder and landlord or freeholder.

Lease Extension

The process of increasing the remaining term of a lease. Leaseholders may have statutory rights in certain circumstances, while voluntary extensions can sometimes be negotiated directly with the freeholder.

Leasehold

A form of property ownership under which the owner holds the right to occupy the property for the remaining term of a lease rather than owning the land indefinitely. Flats are commonly leasehold.

Leaseholder

The person who owns the leasehold interest in a property.

Listed Building

A building placed on the statutory list because of its special architectural or historic interest. Controls can apply to internal as well as external alterations, and unauthorised works can have serious consequences.

Listed Building Consent

Specific consent required for works that would affect the special architectural or historic character of a listed building. It is separate from planning permission and may be required even where ordinary planning permission is not.

Loan-to-Value (LTV)

The mortgage amount expressed as a percentage of the property's value. A £600,000 mortgage on an £800,000 property represents a 75% LTV.

Local Authority Search

A conveyancing search providing information held by the local authority about matters such as planning, building control, highways, local land charges and certain enforcement notices affecting the property.

Lock-Out Agreement

An agreement giving a buyer an exclusive period during which the seller agrees not to negotiate with or sell to another buyer, subject to the particular terms. It can reduce the risk of gazumping but does not itself complete the sale.

M

Management Company

A company responsible for managing communal parts or services relating to a block of flats or private estate. Depending on the structure, it may be controlled by the freeholder, residents or an independent organisation.

Management Pack

Information supplied during the sale of a leasehold or managed property dealing with matters such as service charges, insurance, management arrangements, planned works and compliance with the lease. Obtaining it can be an important part of preparing a leasehold sale.

Memorandum of Sale

A document issued by the estate agent after a sale has been agreed, recording key details such as the property, agreed price, buyer, seller and their respective solicitors. It is not itself the legally binding contract.

Mortgage

A loan secured against property. If the borrower fails to meet the mortgage obligations, the lender has legal rights over the property.

Mortgage Offer

A lender's formal written confirmation that it is prepared to provide a specified mortgage for a particular property, subject to the conditions stated in the offer.

Mortgage Valuation

An assessment commissioned primarily for the lender to decide whether a property provides suitable security for the mortgage. It should not be confused with a more detailed survey commissioned for the buyer.

N

New Build Warranty

A warranty or insurance arrangement covering specified defects in a newly constructed home for a defined period. Different providers offer different levels of protection, so the precise terms should be checked.

No Onward Chain

A phrase indicating that the seller does not need to complete another purchase in order to sell the property. This can reduce one source of complexity in the transaction.

O

Offer

The price and terms proposed by a prospective buyer. In England and Wales, acceptance of an offer does not normally make a residential sale legally binding; that usually occurs at exchange of contracts.

Overage

A contractual arrangement under which a seller may receive an additional payment after selling property or land if an agreed future event increases its value, such as the grant of planning permission. It is also sometimes called an uplift or clawback provision.

P

Party Wall

A wall or other structure shared between adjoining owners, or certain walls positioned on the boundary between properties. The legal definition is wider than simply a wall dividing two terraced houses.

Party Wall Award

A formal document produced under the Party Wall etc. Act 1996 where a dispute has arisen. It sets out how notifiable works may proceed and can deal with matters such as working methods, access and protection of the adjoining property.

Party Wall Notice

A formal notice given to an adjoining owner before carrying out certain work covered by the Party Wall etc. Act 1996. This can include work to a party structure, building on a boundary or specified excavations close to a neighbouring building.

Party Wall Surveyor

A person appointed under the Party Wall etc. Act 1996 to resolve a dispute between building and adjoining owners. The owners can appoint separate surveyors or agree on a single agreed surveyor.

Peppercorn Ground Rent

A nominal rent of little or no financial value. The expression historically referred to a rent of one peppercorn and is now commonly used where a lease requires no meaningful monetary ground-rent payment.

Period Property

An informal estate-agency description for a home associated with a particular historic architectural period, such as Georgian, Victorian or Edwardian. It has no precise legal definition.

Permitted Development Rights

National planning rights allowing certain types of development to take place without a full planning application, provided the detailed limits and conditions are met. These rights can be restricted by planning conditions, listed status or an Article 4 Direction.

Planning Condition

A condition attached to a planning permission controlling how an approved development may be carried out or used. Conditions can cover matters such as materials, landscaping, occupancy, access or timing.

Planning Permission

Formal permission from the local planning authority for development or certain changes of use. Not all building work requires a planning application because some may fall within permitted development rights.

Positive Covenant

A covenant requiring someone to do something, such as contribute towards maintaining a shared private road, driveway or drainage system.

Possessory Title

A class of registered title which HM Land Registry may grant where possession can be shown but full documentary evidence of ownership is incomplete. In some circumstances it can later be upgraded to absolute title.

Power of Attorney

A legal authority allowing one person to act on behalf of another. In property transactions, a valid Power of Attorney may allow an attorney to sell, buy or deal with property for the person who granted the authority, subject to the terms of the document and any legal requirements.

Prescriptive Easement

A right over another person's land that may arise through long, continuous and qualifying use rather than by an express written grant. Rights of way are a common example. Whether a prescriptive right has arisen is a legal question requiring careful evidence.

Private Drainage

Drainage serving a property that is not connected to the public sewer in the usual way, for example via a septic tank, sewage treatment plant or shared private system. Buyers should understand ownership, maintenance, access rights and environmental compliance.

Private Road

A road that is privately owned rather than maintained at public expense. Responsibility for repair and maintenance depends on the legal arrangements, and owners may need rights of way and obligations to contribute towards upkeep.

Probate

The legal process of administering a person's estate after death. Where a property is sold by an estate, the personal representatives may need a Grant of Probate or Letters of Administration before they can complete the sale.

Proceedable Buyer

A buyer who is in a position to proceed with a purchase, for example a cash buyer, first-time buyer or someone who has already agreed a sale of their existing property. Sellers often consider how proceedable a buyer is alongside the amount offered.

Property Information Form (TA6)

A standard form completed by a residential property seller giving information about matters such as boundaries, disputes, alterations, services, guarantees, insurance and other issues affecting the property.

R

Ransom Strip

A small piece of land positioned so that its ownership can control access to or development of adjoining land. Because a development may be impossible without rights over it, a seemingly insignificant strip can have substantial strategic value.

Registered Land

Land where ownership is recorded at HM Land Registry and evidenced principally by the registered title rather than historic paper deeds.

Reserve Fund

Money collected from leaseholders and retained towards future major expenditure, such as roof repairs or external refurbishment. It is also commonly called a sinking fund.

Restrictive Covenant

A covenant restricting the use of land or property. Examples might limit development, prevent certain business use or control alterations. Whether a covenant remains enforceable depends on its wording, history and legal circumstances.

Right of Access

A legal right allowing someone to enter or pass over another person's land for a specified purpose, such as maintaining a wall, drain, service pipe or building.

Right of First Refusal

A contractual or statutory right giving someone the opportunity to acquire an interest in property before it is sold to another party. Particular statutory rights can apply to qualifying leaseholders when a freeholder proposes to sell.

Right of Light

A legal right to receive sufficient natural light through defined windows or openings. In some circumstances, a right can arise through long use and can become relevant when neighbouring development is proposed.

Right of Way

An easement giving someone the legal right to pass over land belonging to another person. The right may permit access on foot, with vehicles or for a particular purpose depending on the wording or circumstances by which it arose.

Right to Manage (RTM)

A statutory process allowing qualifying leaseholders of flats to take over specified management responsibilities for their building without having to purchase the freehold, provided the legal qualifying requirements are met.

Riparian Rights

Rights and responsibilities associated with land adjoining a natural watercourse. A riparian owner may have rights to use and receive the flow of water, but also responsibilities concerning maintenance, obstruction and flood risk.

S

Searches

Investigations undertaken during conveyancing into matters affecting a property. These normally include local authority, drainage and environmental searches, with additional searches depending on location, property type and circumstances.

Section 106 Agreement

A legal agreement or planning obligation associated with planning permission under Section 106 of the Town and Country Planning Act 1990. It can impose obligations or restrictions relating to development, infrastructure, affordable housing or use of land.

Section 20 Consultation

A statutory consultation process that can apply before leaseholders are charged above specified thresholds for qualifying major works or certain long-term agreements. It is particularly relevant where substantial expenditure is planned for a block.

Section 8 Notice

A notice used by a residential landlord seeking possession on one or more statutory grounds. The applicable ground determines the evidence, notice period and process that must be followed.

Septic Tank

An underground system used where a property is not connected to mains drainage. Solids settle in the tank and liquid effluent normally passes to a drainage field. In England, septic tanks and small sewage systems are subject to environmental rules and must be properly maintained.

Service Charge

Money payable by leaseholders towards expenditure such as maintenance, repair, insurance and management of communal buildings or estates. The amount and method of calculation should be governed by the lease.

Share of Freehold

An arrangement where the owner of a leasehold flat also owns a share or interest in the freehold of the building, usually directly or through a company. The flat normally remains leasehold and the lease continues to govern rights and obligations.

Sold Subject to Contract (SSTC)

A property is Sold Subject to Contract (SSTC) when the seller has accepted an offer but contracts have not yet been exchanged. The sale is progressing, but it is not normally legally binding until exchange of contracts.

Sole Agency

An estate-agency arrangement in which one agent is instructed to sell a property for an agreed period. The precise circumstances in which a fee becomes payable are set out in the agency agreement.

Sole Selling Rights

A stronger estate-agency arrangement under which the agent may be entitled to a fee if the property is sold during the relevant contractual period even where the buyer was not introduced by that agent. The exact wording of the agreement is important.

Stamp Duty Land Tax (SDLT)

A tax payable by buyers on qualifying property purchases in England and Northern Ireland. The amount depends on the purchase price and the buyer's circumstances, with different rules potentially applying to first-time buyers and additional-property purchases.

Subsidence

Downward movement of the ground supporting a building, potentially causing structural movement. It is different from settlement, heave and other forms of movement and should be investigated by an appropriately qualified professional where suspected.

T

TA10 Fixtures and Contents Form

The standard form commonly used by sellers to state which fixtures, fittings and contents are included in or excluded from a residential property sale.

Tenants in Common

A form of joint ownership where each owner has a defined beneficial share of the property. Unlike joint tenants, an owner's share does not automatically pass to the surviving co-owner on death and can normally pass under their will.

Title

The legal ownership of land or property together with the rights and restrictions affecting it.

Title Deeds

Documents evidencing historic ownership and rights affecting property. For most registered properties, the Land Registry title is now the principal evidence of ownership, although older deeds may still contain important information.

Title Number

The unique reference allocated by HM Land Registry to a registered title.

Title Register

The official Land Registry record containing information about the property, its registered owner, mortgages, rights, covenants, restrictions and other matters affecting the title.

Transfer Deed (TR1)

The Land Registry form commonly used to transfer ownership of a registered property from seller to buyer. It is signed as a deed and forms an important part of the completion and registration process.

Tree Preservation Order (TPO)

An order made by a local planning authority protecting specified trees or woodland. Cutting down, topping, lopping, uprooting or damaging a protected tree normally requires the authority's consent unless an exemption applies.

U

Unadopted Road

A road that is not maintained at public expense by the highway authority. Owners of properties using it may have private rights of access and obligations to contribute towards maintenance, which should be checked during conveyancing.

Under Offer

A property where the seller has accepted an offer but contracts have not yet been exchanged. The transaction is progressing but is not normally legally binding at this stage.

Unregistered Land

Land whose ownership has not yet been registered at HM Land Registry. Ownership is established primarily through historic title deeds until an application for first registration is made.

V

Vacant Possession

A requirement that a property is provided on completion free from occupiers and possessions that would interfere with the buyer's ability to take possession and use it.

Valuation

An assessment of a property's value. The meaning depends on context: an estate-agent market appraisal, mortgage valuation, tax valuation and formal RICS valuation are different exercises carried out for different purposes.

Village Green

Land registered as a town or village green because local people have qualifying rights or have used it for lawful sports and pastimes for the required period. Registration can substantially restrict development.

W

Wayleave

An agreement granting rights for utilities or infrastructure such as electricity cables, poles or telecommunications equipment to pass through or be installed on land. A wayleave can differ legally from a permanent easement.

Without Prejudice

A legal expression used in genuine settlement negotiations which can, in appropriate circumstances, prevent those communications being relied upon as admissions in later proceedings. It should not simply be added automatically to ordinary correspondence.

Useful distinctions

Easement vs covenant

An easement normally gives one property a right over another person's land, such as a right of way. A restrictive covenant limits what an owner can do with their own land, while a positive covenant requires an owner to take specified action.

Freehold vs leasehold vs share of freehold

Freehold usually means owning the property and land indefinitely. Leasehold means owning the right to occupy for the remaining lease term. Share of freehold usually means a leasehold flat owner also has an interest in the building's freehold; the lease still remains important.

Joint tenants vs tenants in common

Joint tenants normally own together so that a deceased owner's interest passes automatically to the survivor. Tenants in common own defined beneficial shares which can usually pass under each owner's will.

Exchange vs completion

Exchange of contracts is when the residential sale normally becomes legally binding. Completion is when the purchase money transfers, ownership changes and the buyer normally receives the keys.

Planning permission vs Building Regulations

Planning permission is principally concerned with whether development is acceptable in planning terms. Building Regulations deal with technical standards such as structure, fire safety, insulation and drainage. A project can require both.

Party wall vs boundary

A party wall is a structure falling within the Party Wall etc. Act 1996. A boundary is the legal division between ownerships. The boundary does not necessarily run through the centre of every party wall.

Private road vs unadopted road

A private road is privately owned. An unadopted road is not maintained at public expense. The terms can overlap, but ownership, access rights and maintenance obligations must be checked from the title and other documents.

Septic tank vs sewage treatment plant

A septic tank settles solids and normally discharges liquid effluent to a drainage field. A sewage treatment plant treats effluent more actively and may, subject to the rules, have different discharge options. Both require proper maintenance and environmental compliance.