Bankruptcy Search

If you are taking out a mortgage against the property you are purchasing then the lender will request that your solicitor carries out a search to ensure you are not bankrupt.

Building Insurance

Buildings insurance provides cover for you in case something happens to the property you are purchasing (a fire for example). In conveyancing transactions in England and Wales you are often responsible for building's insurance from exchange of contracts (not completion).

It is important to have an appropriate level of cover in place from this date. The policy value should be able to meet any costs involved in rebuilding the property, rather than the current property value.

Contents Insurance

Contents insurance provides cover for the cost to replace any items located inside your property, if they are lost due to fire or theft. It is recommend that if you have anything of value in your property, that you have cover in place from when you take possession of the property at completion.

Client Care Letter

The client care letter details the level of service you should expect from the firm handling your conveyancing matter. Until you have signed and returned a client care letter to a solicitor you have not instructed them, and are under no obligation do so just because you got a quote from them.

Completion Date

This is the date upon which the buyer (or the buyers solicitor) will transfer payment for the property to the seller, and also receive the keys to their new property. The seller hands over the keys to the property (usually through their estate agent) and the sellers solicitor transfers payment for the property (minus and deductions for fees or disbursements due) to the seller.

Completion Statement

This is a full breakdown of the financial costs incurred in purchasing a property and will be provided by your solicitor. It states the total amount of money your solicitor needs from you in order to complete the purchase of your chosen property on your behalf.

Contract

The contract is a legal document that sets out the terms of the conveyancing transaction and the parties involved, and is drafted by the sellers solicitor.

Contract Pack

The contract pack is a collection of documents and information relating to the property being sold. It is complied by the sellers solicitor and contains key details including:

• the draft contract
• copy title deeds
• a completed property information form (completed by the seller)
• a fixtures and fittings form (completed by the seller)

The contract pack is forwarded to the buyer's conveyancing solicitor so he may investigate the sellers legal title over the property.

Deposit

This is the amount of money the buyer will pay to the seller on exchange of contracts. The standard deposit is 10%, however if you are buying and selling your solicitor can usually use your buyers deposit for your purchase without the need to find a deposit in cash.

Disbursements

These are additional costs incurred during a property sale or purchase, and include things such as stamp duty and search fees.

Drainage Search

This search shows the location of drains and sewers located near or on your property and whether or not surface water and/or foul water drains run into a public or private sewer.

Environmental Search

It is recommended that environmental searches are carried out on any property you are purchasing. These searches identify whether there are any landfill/waste disposal sites in the area, if your property has been built on an old industrial site, and whether there are any risks from the land your house is built on being contaminated or having toxic emissions, for example if your property is situated in an area with high levels of radon. Environmental searches should also identify if your property may be susceptible to flooding or subsidence as a result of mining.

Exchange of Contracts

It is at exchange of contracts that a conveyancing transaction in England or Wales becomes legally binding. Until this point either party can pull out of the conveyancing transaction. Identical copies of the contract are signed by both parties and exchanged, usually by the solicitors for both parties. The deposit is also passed from the buyers solicitor to the sellers solicitor for them to hold until completion.

Fees

This is the charge levied by your solicitor to complete your conveyancing transaction. VAT will be payable on any fees, and it is worth noting that disbursements may also be payable in addition to any solicitors fees. Always ensure you obtain a full conveyancing quote including all fees and disbursements before instructing a solicitor.

Fixture & Fittings Form

The fixtures and fittings form is completed by the seller and details anything in the property that is and is not included in the purchase price.

Land Registry Search

This search determines the current ownership of the property and checks that there are no mortgages registered against the property that have not previously been disclosed. If a mortgage is in place the buyers solicitor will obtain confirmation that the mortgage will be repaid.

Local Authority Search

This looks at the planning history of the property and whether the Council are aware of any breaches of in planning permission. The search also checks for proposals for any new traffic schemes and roads that could affect the value of your property, as well as for anything else of interest such as conservation areas and smoke control orders within the Council's control that affect the property.

Property Information Form

This is a questionnaire about the property that the seller is requested to complete by their solicitor. It asks for details about the property such as details of current utility providers, boundaries, fixtures (such as double glazing) and planning permissions.

Redemption Statement

This details the amount it will cost you to pay back your mortgage early, and is usually made up of the amount of money you owe the lender along with a penalty for the early redemption of your mortgage.

Stamp Duty

Stamp duty is a tax payable on all properties sold for over £175,000. If the property you are buying is just above the stamp duty limits (£175,000.00, £250,000.00 and £500,000.00) and the property includes some fixtures and fittings, for example carpets, fridges ovens etc. you may be able to attribute part of the purchase price to buying the fixtures and fittings. Stamp duty will then be payable on the amount of the price agreed for the actual property, excluding the amount being paid for the fixtures and fittings. If you want to do this it is important to inform your solicitor before contracts are exchanged.

Title Deeds

This document provides proof of ownership for a property and if you have a mortgage will usually be held by your lender for the term of
the loan.