Glossary A – G

Acceptance

This is what you need to sign and return when you accept a mortgage offer from a lender.

Applicant

What an estate agent will often refer to you as when you are a potential purchaser of a property.

Appraisal

When you are selling your house, the estate agent will ‘appraise’ your house to determine a current value for it.

Bridging Finance

This is what you may need if you need to buy a new house before selling your old one. Your lender will decide whether this is a viable option.

Collateral

Your house when it used as a guarantee to your lender that you will repay a loan.

Conveyancing

This is the name of the legal process that transfers the ownership of a property from the seller to the buyer.

Covenant

A legal requirement on the owner of a property to either do, or not do something with their property.

Deeds

All the legal documents regarding a property.

Delayed Completion

Completion normally takes place less than 28 days after exchange of contracts, but if it takes place after 28 days have passed, it is called ‘delayed completion’.

Equitable Interest

Where someone has certain legal rights to a property, but these rights do not include sale of the property.

Exchange of contracts

This is the only point where a transaction becomes legally binding. Once both parties have exchanged legally binding, signed contracts, the sale must go ahead.

Fixtures and Fittings

Any items in a house that are to be included in a sale. E.g. carpets, curtains, fixed lights etc. These should be agreed before the sale.

Freehold

Indicates complete ownership of a piece of land. In contrast to leasehold.

Gazumping

Occurs when a vendor accepts an offer, but then rejects the offer at a later date and accepts a higher offer.

Gazundering

Occurs when a buyer reduces their offer just before exchange of contracts.