Jargon Buster

Our definitions of key home buying terms.

We've outlined the various terms that you can expect to hear when going through the home buying process. Making it easier for you to understand.

Conveyancer

An alternative to a solicitor, qualified to act in the sale or purchase of a property.

IFA

Independent Financial Adviser.

Developer

Responsible for managing and delivering a housing project from start to finish – including securing land, planning, design, construction, and final handover. Developers coordinate with architects, contractors, and local authorities to ensure the homes are completed to specification.

Conveyancing

The legal process of transferring ownership of a property from one person to another. It includes preparing contracts, conducting searches, and ensuring all legal requirements are met during a property purchase or sale.

Reservation fee

A payment made to secure the property. At this point the property is taken off the market. This payment forms part of the purchase price.

ID

Certified Identification is required for Anti Money Laundering, and you will be required to provide certified proof of identification and address (dated within the last three months) to your solicitor.

Deposit

The sum of money initially put down by a buyer when purchasing a property, this is usually around 5–10% of the share that you are buying.

Memorandum of sale (MOS)

A document that contains the essential legal details of a property transaction and is confirmation of the agreement between buyer and seller.

Building insurance

Your buildings insurance is covered within your service charges, this means that you only need to take out contents insurance.

Predicted energy assessment (PEA)

Predicted energy assessments are for new build homes. Normally, when a home is designed, a “target energy rating” based on the design is produced to show a building inspector that the property will meet requirements under Building Regulations. The final energy performance of the property must achieve at least this target energy rating to receive its final sign-off from the building inspector.

Energy Performance Certificate (EPC)

An EPC provides an energy performance rating for your home, with ratings varying from A (most efficient) to G (least efficient). It also gives recommendations of how to improve the home’s energy efficiency to save further money. An EPC is a legal requirement for a seller to provide to the buyer.

EWS1

If you’re buying a flat this form is evidence that a building with potentially combustible cladding has had a fire safety assessment.

Off plan

Purchasing a new build property which has yet to be built.

Leasehold

A leaseholder owns the property and its land for the length of the lease agreement with the freeholder. All shared ownership properties are leasehold.

Service charge

The charge for the upkeep of a leasehold property. This is more common in blocks of flats or apartments, with the charge normally apportioned to the number of units within.

Mortgage deed

A legal document relating to and acknowledging, the Mortgage lender’s interest in the property.

Mortgage offer

A formal written offer to you from a bank or building society to lend an approved amount against a property.

Mortgage valuation survey

When you apply for a mortgage your lender will commission a mortgage valuation, also known as a valuation survey, to assess whether the house is worth what you’re planning to pay for it.

Searches

These are checks on local authority records to show up planning applications, highways, restrictions and land charges. Further searches may be requested by a solicitor such as chancel (a legal obligation to pay for repairs to the parish church), utilities, drainage etc. if they feel this is appropriate. Your solicitor may ask for payment for searches in advance.

Stamp duty

Tax paid to the government on the purchase of a property. The fee that’s actually paid can vary as it’s based on a percentage of the purchase value of the property. It is payable at the point of completion. Your solicitor will advise how this is paid on shared ownership properties. More information about stamp duty can be found here. 

Contract

A legal agreement setting out contractual terms between the buyer and seller; it is drafted by a solicitor or conveyancer.

Longstop date

The contract may contain a longstop date. This is the date by which the building must be build complete. If the property is not complete by this date then you have the chance to rescind (pull out) of your contract.

Building control certificate

A building control certificate formally certifies the property has been inspected and building works have been carried out in accordance with the building regulations.

Snagging

This is when we and the developer identify and make good minor issues, such as touching up paintwork and adjusting appliances, prior to the buyer moving in. We do not accept additional snagging reports from buyers as this process has already been completed.

Exchange of contracts

The point in the process of selling and buying a home when both parties become legally bound to complete the deal and can no longer change their minds without financial repercussions.

Practical completion (PC)

A concept used in the construction industry to represent the date on which construction/building works is complete, except for minor defects and the building is reasonably capable of being used for its intended purpose.

Completion

This is the point in the process where you actually own your new home. All funds have been transferred, paperwork completed, and keys can be handed over.

Completion on notice

When the property is still under construction, we will exchange contracts with completion on notice, meaning we will serve you with notice to complete once we have taken handover of the property and are able to arrange a fixed date for you to move in. You will have 10 days to move into your property from the date we serve notice.

Handover

When the developer hands the development over to our construction team ready for building registration (if required) or occupation.

Building registration

Under the Building Safety Act 2022 it is a legal requirement to register high-rise residential buildings that are at least 7 floors high, or 18 metres tall or higher. The building must be registered by providing key building information to the Building Safety Regulator before the building is occupied. Building registration can only happen once we have taken handover of the development from the developer. Registering the building helps to ensure that it meets all applicable building codes and standards.

Defect liability period

Following handover the builder/contractor will remain liable for any defects for a set period. This is usually for one year and runs from when we take handover of the properties, not from when the buyer moves in.

Building warranty

All developments must comply with building standards and are offered with the benefit of structural defects insurance (sometimes referred to as a warranty). Most major developers subscribe to the National House Building Council (NHBC) scheme which offers a 10 year “Buildmark” warranty. Other developers may subscribe to similar schemes such as the Premier Guarantee Scheme warranty.

The warranty is designed to cover defects in the property which may arise during the warranty period as a result of the developer's failure to observe the scheme requirements.

Staircasing

Buying more shares in your home. Your lease will explain how you can staircase in the future. This will be done through our dedicated resales team.