Estate Agent Jargon Explained
Confused by estate agent jargon? We’ve put together a glossary of terms used by agents and solicitors to make your life a little easier.
Agreement in principle:
{Also called a Decision in Principle}
This is a document from the bank confirming how much they would allow you to borrow. It is issued before you apply for a mortgage.
Building survey:
{Inspection of the property}
An in-depth inspection of a property which provides a comprehensive evaluation of the property’s condition and outlines any defects that need attention.
Chain:
{Noun}
This is a sequence of home sales that must all happen at the same time. If you’re buying from someone who also needs to buy a property in order to move, you’re in a chain.
Completion date:
{Move in day}
The last step in the property buying and selling process. This is the day when ownership is transferred from the seller to the buyer, and the buyer receives keys to their new home.
EPC:
{Energy Performance Certificate}
A document detailing the energy efficiency of a home and providing indication of how much it will cost to heat and power a property, with A being most efficient and G being the least.
Equity:
{How much you actually ‘own’}
Your equity is calculated by adding your deposit amount with the sum you’ve paid off your mortgage plus any increase in your home’s value since you bought it.
Exchange of contracts:
{Home sale becomes legally binding}
The sale of a home becomes legally binding at this point. A contract will be signed by both parties and the buyer will need to pay a deposit.
Freehold:
{Owning your property and the land}
Outright ownership of your property, including the land on which it is built. If you buy a freehold, you’re responsible for maintaining your property and the land it is built on.
Leasehold:
{Owning the right to live in the property}
You are purchasing the right to live in the property for a set number of years while the freeholder (or landlord) continues to own the property and land outright.
Loan to value:
{LTV}
A term used when obtaining a mortgage, you calculate this by taking the mortgage amount and dividing this by the property’s value.
Snagging:
{Finding defects, if any}
A process of inspecting new build properties for slight problems or defects in order to repair these prior to completion.
Sold subject to contract:
{SSTC}
A term used when obtaining a mortgage, you calculate this by taking the mortgage amount and dividing this by the property’s value.
Title deeds:
{Finding defects, if any}
Legal documents which record the property ownership and its accompanying land.
Stamp duty:
{Stamp Dutly Land Tax SDLT}
This is a tax you payable when you buy a residential property or a piece of land in the UK over a certain price.
Under offer:
{Offer accepted by seller}
The buyer has submitted an offer for the property and the seller has accepted this offer.
Valuation:
{Also known as an appraisal}
This develops an accurate idea of the worth of a property through a professional estate agent visiting the property and carrying out research on the local market.
Viewing:
{An interested party views your property}
This develops an accurate idea of the worth of a property through a professional estate agent visiting the property and carrying out research on the local market.
Online valuation:
{An estimate of your propertys value}
An internet based tool which generates a rough estimate of a home’s value based on a plethora of data, ranging from sold prices in the area to property size and current market trends.
Mortgage offer:
{Mortgage application approved}
Confirmation that your application for a mortgage has been both checked and approved.
Memorandum of sale:
{Written Confirmation of the property transaction}
Written confirmation of essential details of a property transaction which has been drawn up by an estate agent. This happens when a home moves from ‘under offer’ to ‘sold subject to contract’.
Draft
contract pack:
{Property sale details}
An outline of the details of a property sale including information such as agreed price, title number, full address of property and names of buyers and sellers.
Have a question about the selling process?
There can be a lot of questions when selling or buying your home. We’ve put together a series of videos of our teams answering questions that regularly pop up about the selling or buying process.
Still have a question?
Our experienced, knowledgeable team know the property industry inside and out. They are more than happy to answer any questions you have regarding your selling journey.
Fill out the form and send us your question, a member of our team will get back to you as soon as possible.
Alternatively, you can talk to our team at your nearest office.