We understand that buying and selling can be a daunting experience. This is why we have defined some of the less frequently known words and phrases that may crop up in your journey.
An agreement in principle (AIP) sometimes known as decision in principle (DIP) is a document from a mortgage lender that confirms it will lend you a certain amount of money based on your earnings and annual income. An AIP will help prove to a seller you’re a serious buyer.
Formerly known as a structural survey, a Building Survey is a detailed
report on the construction of a property. It is the most comprehensive survey you can buy and is suitable for listed buildings, older or unusual homes or ones you intend to completely renovate.
A surveyor, accredited by RICS who is employed to carry out a survey on a property.
The point at which signed contracts confirming the intention to transfer
ownership between buyer and seller are physically exchanged. At this stage the parties become legally bound by the terms. It is at this stage you will be required to pay the deposit (typically 10% of the purchase price).
Completion is when you can move in! The sale of the property is finalised and the legal transfer of ownership passes from one party to another.
A certificate that details how efficiently a property uses energy with a ranking between A-G (with A being the most efficient). It will also provide an estimation of energy costs and offer suggestions on how to improve your efficiency. An EPC is legally required for properties being marketed for rent as well as for sale.
Fees that are paid by the solicitor on behalf of the buyer. These range
from stamp duty and local authority searches to money transfer fees.
A guarantee offered on some newly built homes for structural defects occurring within a specified time after construction.
The tax paid to the government by a buyer on the purchase of a property. The tax kicks in at £125,000 but genuine first-time buyers get the first £300,000 of a property value tax-free if the home is worth less than £500,000.