Property Chain Terminology

Property transactions involve a language of their own, filled with terms and phrases that can be overwhelming for newcomers. From "gazumping" to "exchange of contracts," understanding the terminology is crucial for navigating the process with confidence. In this article, we'll clarify common property chain terminology, providing a comprehensive glossary to empower buyers and sellers to make informed decisions.

Gazumping

Gazumping occurs when a seller accepts a higher offer from another buyer after previously accepting an offer from a different buyer. This can lead to the original buyer losing out on the property, despite having their offer accepted.

Exchange of Contracts

The exchange of contracts is the point in a property transaction where the buyer and seller become legally bound to complete the sale. At this stage, both parties sign and exchange contracts, and a deposit is typically paid by the buyer.

Completion

Completion is the final stage of a property transaction, where ownership of the property is transferred from the seller to the buyer. On the completion date, the remaining balance of the purchase price is paid, and the keys are handed over to the buyer.

Chain

A property chain refers to a sequence of linked property transactions, where each purchase is dependent on the successful completion of the previous one. For example, if a buyer is selling their current property in order to purchase a new one, they are part of a property chain.

Conveyancing

Conveyancing is the legal process of transferring ownership of a property from seller to buyer. It involves various tasks, such as searches, inquiries, and paperwork, and is typically carried out by a solicitor or licensed conveyancer.

Survey

A property survey is a detailed inspection of a property's condition, conducted by a qualified surveyor. The survey aims to identify any structural defects or issues that may affect the value or safety of the property.

Mortgage Offer

A mortgage offer is a formal offer of a loan from a lender to a borrower, secured against a specific property. The offer sets out the terms and conditions of the loan, including the interest rate, repayment schedule, and any fees or charges.

Title Deeds

Title deeds are legal documents that provide evidence of ownership of a property. They include details such as the property's boundaries, rights of way, and any restrictions or covenants affecting the property.

Chain-Free

A property that is chain-free is not dependent on the sale of another property for its purchase. Chain-free properties are often attractive to buyers, as they can offer a quicker and more straightforward transaction process.

Completion Date

The completion date is the date on which the property transaction is finalized, and ownership of the property is transferred to the buyer. It is agreed upon by both parties at the exchange of contracts stage and typically occurs a few weeks after exchange.

By familiarizing themselves with these common property chain terms, buyers and sellers can navigate the transaction process with confidence and clarity. Whether you're exchanging contracts or completing the purchase of your dream home, understanding the language of property chains is essential for making informed decisions and achieving a successful outcome.