Terminology
a. Local Searches
A "search" is made in the registers maintained by the district council in relation to such matters as planning decisions and road charges. The expression includes the enquiries made in different departments of the council concerning a wide range of other matters, which might affect the property. Apart from roads affecting land within two hundred metres of the property, the search will only given information about the property itself. The search would not give information about other property, for example the development of neighbouring land. Therefore if you are concerned about the possibility of development (or any other matter) relating to other property in the neighbourhood you would make your own enquiries before you consent to commit yourself to the purchase.
b. Preliminary Enquiries
These are a series of questions addressed to the seller, who has to answer these from his own knowledge. The enquiries relate to such matters as disputes with neighbours, work done on the property requiring building regulation approval, or rights that other people have over the property.
c. Exchange of Contracts
This is the point at which both parties become committed to proceed with the sale/purchase. Literally it is the exchange of one copy of the contract signed by the buyer for another copy of it signed by the seller.
d. Deposit
This is part of the purchase price paid at the exchange of contract stage; normally 10% of the purchase price.
e. Mortgage
This is a document recording the loan of money, such loan being "secured" on the property. If payments under the mortgage are not maintained, the lender, (usually a building society or bank), may have the right to take possession of the property and sell it.
f. Transfer
This is the document transferring ownership of land.
h. Completion
This is the actual transfer of ownership on payment of the balance of the purchase price. This normally occurs between two and four weeks after the exchange of contracts.
i. Stamp Duty
This is simply a tax charged by the government, and only affects you if you are buying for more than £60,000.00. It is paid by the buyer, not the seller.
j. Registration of Title
It is compulsory that any change of ownership and other transactions with property are registered at the Land Registry, this registry records ownership and important details of rights and liabilities and is therefore conclusive evidence of them.
Extra Information
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