Property glossary · 47 words explained
Say it plainly.
The words agents, lenders and solicitors use, explained in plain English. If something here doesn't make sense for your situation, ask me and I'll explain it properly.
A
- Agreement in principle (AIP)
- A lender's written estimate of how much it might lend you, based on a quick check of your income and credit. It isn't a mortgage offer, but agents and sellers take you more seriously with one.
- Anti-money-laundering checks (AML)
- Identity and source-of-funds checks that agents, solicitors and mortgage advisers must carry out by law before they act for you. Expect to show ID and proof of where your deposit came from.
- Article 4 direction
- A council order that removes some permitted development rights in a particular area, often a conservation area, so changes like new windows or front walls need planning permission.
- Asking price
- The price a seller is advertising at. Homes can sell above or below it. See also guide price and offers over.
B
- Buying agent
- Someone you hire to find, assess and negotiate on a home for you. Unlike the selling agent, who works for the seller, a buying agent acts only for you. More on hiring me as your buying agent.
C
- Chain
- The line of linked sales and purchases that depend on each other. If one link breaks, everyone can be held up. A chain-free buyer or seller has nothing to sell or buy first.
- Completion
- The day the money moves, ownership passes to the buyer and the keys are handed over. Usually one to four weeks after exchange of contracts.
- Conservation area
- An area the council protects for its special character, such as Shortlands Village or Park Langley. Extensions, demolition and some alterations need more care and sometimes extra permission.
- Conveyancing
- The legal work of transferring ownership of a property, done by a solicitor or licensed conveyancer. It covers the contract, searches, enquiries, the money and registering the new owner.
- Covenant
- A promise written into the title deeds. A restrictive covenant stops owners doing certain things, such as building a second house in the garden, even years after it was written.
D
- Deposit (buying)
- The cash you put towards the purchase. Usually 5% to 25% of the price, paid at exchange of contracts, with the mortgage covering the rest at completion.
- Deposit (renting)
- Money a tenant pays to cover damage or unpaid rent. In England it's capped at five weeks' rent (six weeks if the yearly rent is £50,000 or more) and must be protected in a government-approved scheme.
E
- EPC (Energy Performance Certificate)
- A rating of a home's energy efficiency from A to G, valid for 10 years. You need one before marketing a home for sale or rent.
- Equity
- The part of your home you own outright: its value minus what you owe on the mortgage.
- Exchange of contracts
- The moment the sale becomes legally binding. Buyer and seller swap signed contracts and agree a completion date. Pull out after this and you lose your deposit.
F
- Freehold
- You own the building and the land it stands on, with no time limit. Most houses in our area are freehold.
G
- Gazumping
- When a seller accepts a higher offer from someone else after already accepting yours, before contracts are exchanged. Legal in England, but painful.
- Gazundering
- The reverse: a buyer lowers their offer just before exchange, knowing the seller is committed to their own purchase.
- Ground rent
- A yearly payment some leaseholders make to the freeholder. For most new residential leases since June 2022 it's set at zero.
- Guide price
- An indication of what the seller expects to achieve, often used with auctions and best-and-final offers. The final price can be higher or lower.
H
- HMO (house in multiple occupation)
- A rented home shared by three or more people from more than one household, sharing a kitchen or bathroom. Many need a licence from the council.
- Holding deposit
- A sum a tenant pays to reserve a rental home while checks are done. Capped at one week's rent in England, and normally put towards the first rent or deposit.
L
- Land Registry (HM Land Registry)
- The government body that records who owns land and property in England and Wales. Its title register and title plan show the owner, the boundaries and any mortgages or covenants.
- Leasehold
- You own the right to live in a property for a fixed number of years, while someone else (the freeholder) owns the building. Most flats are leasehold. Short leases, under about 80 years, can be harder to mortgage and sell.
- Loan to value (LTV)
- Your mortgage as a percentage of the property's value. Borrow £400,000 on a £500,000 home and your LTV is 80%. Lower LTVs usually get better rates.
M
- Material information
- Facts an agent must tell buyers or tenants up front if they could affect their decision: things like council tax band, tenure, service charges, flood risk and restrictions.
- Memorandum of sale
- The agent's note confirming an agreed sale: the price, the people involved, their solicitors and any conditions. It starts the legal process.
- Mortgage offer
- The lender's formal, binding offer to lend, issued after it has valued the property and checked your finances. Offers usually last about six months.
- Mortgage valuation
- The lender's check that the home is worth what you're paying, for its own protection. It isn't a survey and won't tell you much about the condition.
O
- Offers over / OIEO
- "Offers over" means the seller expects more than the figure shown. "OIEO" (offers in excess of) means the same thing.
P
- Permitted development
- Building work you can do without a full planning application, such as some extensions and loft conversions, within set limits. It doesn't apply in the same way to flats, listed buildings or areas with an Article 4 direction.
- Probate
- The legal right to deal with someone's estate after they die. A property can usually be marketed before probate is granted, but the sale can't complete until it is.
- Product transfer
- Switching to a new mortgage deal with your existing lender when your current rate ends. Usually quicker than a remortgage, but not always the best rate available.
R
- Redress scheme
- An independent ombudsman service every estate and letting agent must belong to by law. If an agent can't resolve your complaint, you can take it there for free.
- Remortgage
- Moving your mortgage to a new lender, often to get a better rate or to borrow more.
- Renters' Rights Act
- The law that reshapes renting in England. From May 2026, "no-fault" section 21 evictions ended and most tenancies became rolling, with no fixed end date. Read more for landlords.
S
- Searches
- Checks your solicitor makes with the council and other bodies about the property and the area: planning history, roads, drainage, flood and environmental risk.
- Service charge
- What leaseholders pay towards maintaining the building and shared areas, such as the roof, lifts, gardens and insurance.
- Sole agency
- Selling through one agent only, usually for an agreed period. Multi-agency means several agents at once, usually for a higher fee.
- SSTC (sold subject to contract)
- An offer has been accepted, but contracts haven't been exchanged yet, so the sale isn't legally binding. Also called under offer.
- Stamp duty (SDLT)
- The tax you pay when you buy a home in England over a set price. First-time buyers get relief up to £500,000. Current rates and what the Budget means.
- Survey
- An independent inspection of a home's condition by a RICS surveyor. Level 1 is a basic condition report, Level 2 suits most standard homes, and Level 3 is a detailed building survey for older or altered properties.
T
- TA6 and TA10 forms
- The standard property information form (TA6) and fittings and contents form (TA10) the seller fills in for the buyer's solicitor. Answer them carefully: wrong answers can come back to bite.
- Title deeds
- The documents that prove who owns a property. Most are now held electronically by HM Land Registry.
V
- Vacant possession
- The property will be empty of people and belongings on completion day, ready for the buyer to move in.
- Valuation (market appraisal)
- An agent's view of what your home should sell or let for, based on local sold prices and demand. Not the same as a lender's mortgage valuation. Ask me for one.
Written for general information about England, checked 28 October 2026. Rules change, so check with your solicitor or adviser before you act.