Glossary

A

Additional Searches

In addition to a local search, we may have to conduct additional searches on your purchase property; these may include:
Mining- If property is located in a mining area i.e coal
Water- Drainage enquiries if not already provided in local search to ascertain that the property has mains drainage and water
Environmental- to check that the land upon which property is built has not been contaminated.

Automated Registration of Title to Land (ARTL)

The Registers of Scotland have introduced a new electronic system to apply for registration of interests in land and Your Conveyancer is using this system. This enables us to register loan/mortgage transactions and change of ownership over the internet without the need for paper documents. It does not apply in every transaction.

B

Building Regulation Consent

Virtually all works to a property require consent under the Building Regulations even if Planning Consent is not needed. The Local Authority is responsible for such matters. Carrying out works without consent can lead to significant problems and delays when properties are being sold.

Building Insurance

A policy of insurance taken out by the owner of a property against a number of risks including storm damage, flood, and accidental damage. If the property is a flat the Factor /managing agent will probably take out this insurance and the owner will be responsible for a proportionate part of the premium which will form part of the owners service charge.

C

Completion

Moving day or the day upon which your transaction completes with the balance of purchase/sale monies being paid and title to property transferred. For remortgages the day when your existing mortgage is repaid.

Completion Statement

A statement sent by a solicitor showing the amount of money required to complete a transaction and what monies have or will pass through the solicitors hands in relation to the transaction.

Concluded Missives/Conclusion of Contract

The point in the legal process where all conditions in the missives have been agreed by both the solicitors acting for the purchaser and the seller and missives are concluded. Where this has happened there is a legally binding agreement/contract and normally neither party may withdraw without liability for breach of contract. Property insurance should now be in force.

Conveyance / Transfer

A document which transfers ownership of a property from one person to another.

Conveyancer

This is the person who is dealing with your transaction.

D

Deedholder

The party that has the Title Deeds to your property. If you have a mortgage on your property these will be held by your current lender. If not, these documents are likely to be in your possession or held by an appointed firm of solicitors.

Defect in Title

A problem with the paper title relating to a property eg the lack of a right access to the property.

Discharge

The document that is signed by your existing lender acknowledging that your mortgage has been repaid in full. This document requires to be registered in the Registers of Scotland

Disposition

A document which transfers ownership of a property from one person to another.

E

Equity

Open market valuation of property less any outstanding mortgage balance and further charges on property. As long as the value is higher than combined amounts borrowed on the property, then you have equity. If the borrowings are greater than the value you have negative equity.

Estate Agents Accounts

These are the fees charged by your estate agent to sell your property If you wish we can deal with these on completion on your behalf.

F

Factor

A company appointed to collect a service charge, arrange for common services such as gardening etc and in some cases to insure, maintain and repair the property.

I

Identity Check

The Money Laundering Regulations and The Law Society of Scotland require us to be satisfied as to the identity of our clients and as to the source of any funds passing through our hands. To avoid the requirement for you to forward us original documents as proof of identity we carry out an electronic money laundering and identity verification check for which there is a charge. In the event that we are unable to obtain electronic verification or that we need to be satisfied as to the source of funds passing through our hands, we may need to ask you for proof of identity and other information relating to these matters.

Investigation of Title

The process of checking the title deeds that your conveyancer will go through to ensure that the seller of a property is legally able to pass good title to a buyer.

L

Land and Buildings Transaction Tax

A tax imposed by the government on property purchases. Please refer to your quote. We will confirm the amount due as part of the conveyancing process.

Local Search

Enquiries raised with the local authority relating to information they hold on the property and surrounding area, eg. planning, whether adjacent roads are adopted, whether the property is in a conservation area and general services are available etc We may make enquiries direct of the local authority or use a search agent to obtain the necessary information.

M

Missives

The exchange of letters between the solicitors acting for the purchaser and the seller forming the contract.

Mortgage Administration Fee

We may charge this fee if you are buying the property with a mortgage as we will have to advise you on the details of the mortgage, obtain search results to satisfy your new Lender, contact the Lender for release of monies in order to complete the transaction and also register relevant documentation at Registers of Scotland for the Lender too.

Mortgage Lender / Mortgage Provider

The financial organisation that lends you the money to purchase or remortgage your property sometimes called the mortgagee.

Mortgage Offer

Document issued by your mortgage lender highlighting amount of borrowing, interest payable, monthly repayments and mortgage terms and conditions. Any special conditions will be contained within the mortgage offer. You need to read these when you receive them as you will be bound by them.

Mortgage Redemption Fee

We will charge this fee if you have a mortgage on the property you are selling as we will have to contact your Lender to obtain a redemption figure, obtain signed and sealed documentation from them and also register this documentation with the Registers of Scotland.

Mortgagor

Another name for a borrower under a mortgage.

N

NHBC (National Housebuilders Federation)

This is the body to which most residential builders belong. It is responsible for monitoring building standards of new properties and issues a 10 year warranty in favour of buyers relating to the build quality of the property.

O

Outlays

Charges payable to third parties i.e. Registers of Scotland/local authority. Please Note: These charges are estimated and may be slightly higher or lower than those quoted. You will however be notified of any changes.

P

Planning Permission

The consent given by a Local Authority to a person who wishes to develop land or change its use in some way.

Privacy Statement

Your name, e-mail address, current address, property address, telephone number and credit/debit card details are all taken in order to process your instruction and contact you throughout the process. Further details requested allow us to deal with your instruction professionally and promptly. Any feedback received is for the purpose of improving our site and enhancing the service we deliver. We do not sell, trade or rent your personal information to others.

R

Redemption Statement

Document issued by your current mortgage provider indicating the total amount owing on your present mortgage We will advise you of this figure in due course. Any queries on the amounts disclosed should be raised by you with your mortgage lender.

Registers of Scotland (ROS)

A government agency responsible for recording who owns what land in Scotland. Whenever a property is purchased or mortgaged you are required to register the transaction at ROS who charge a fee to the purchaser, seller or remortgagor to update their records. The fee is related to value of the property or amount of mortgage. Your quote will tell you how much the fee will be.

Registers of Scotland Fees

A fee imposed by the Registers of Scotland based on the value of the property or loan Please refer to your quote.

Roll Number

The number given by a lender to the borrowers account.

S

Security

The systems that hold your information are kept within our internally protected network, guarding against loss, misuse or alteration. We use the highest level of security available to us to protect your account.

Security Statement

We use the highest level of security available to us in order to protect your private details. You will select your own unique password, required to gain access to your case details. Our site has measures in place to protect against loss, misuse and alteration of the information under our control. Systems that hold your information are kept within our internal protected network. Unlike email, all messages sent by you or by us pass through a secure environment and can't be intercepted.

Service Charge

In relation to Leasehold property the annual payment paid by the Owner to the Factor in respect of works or expenditure carried out by the Factor under the Lease and for which the Owner is responsible.

Shared Ownership

A property which has been or is about to be partially bought from a Housing Association or Local Authority i.e. you are buying 30% of share of property but Housing Association/Local Authority retains 70% ownership.

Shortfall

A payment required from you for the difference between the amount you are borrowing on a proposed mortgage and the amount needed to complete a purchase or repay an existing mortgage. If you are purchasing and selling this difference may be covered by the surplus from the associated sale.

Standard Security

Document signed by person(s) taking out a mortgage agreeing to the mortgage lenders terms & conditions. This document requires to be registered in the Registers of Scotland.

Surplus

In a sale the balance of funds payable to you after repayment of your existing mortgage and all of our fees and outlays. In a sale and purchase the balance of funds payable to you after repayment of your existing mortgage, using any balance required to fund your purchase in addition to your new mortgage and all of our fees and outlays. In a remortgage the balance of funds payable to you after repayment of your existing mortgage and all of our fees and outlays.

T

Telegraphic Transfer

Transfer of monies via a bank electronically. Funds are usually transferred in this way on completion in order to ensure a quick movement and in order to ensure completion is not delayed due to lack of money. A charge is made in respect of each transfer.

Title Deeds

These documents show the history of a property and ownership details. If you have an existing mortgage on your property these will be held by your current lender. If not they are likely to be held by yourself or by a firm of solicitors. When purchasing, we investigate these details to ensure that a property's title is in order and there are no areas of concern.

V

Vacant Possession

Means that a property is unoccupied at the completion date.

Valuation Report

Assessment of the property's value.