Jargon Reference Guide



 

CML


The council of mortgage lenders, which devised the Mortgage Code to ensure lenders treat customers fairly.

Capped Mortgage


Provided by lenders with an upper limit on the interest rate which is normally agreed for a fixed period of time. Thus if the standard interest rate is lower than the upper limit the borrower will be charged interest on the lower rate, but if the standard variable rate is higher the borrower will be charged at the agreed rate.

Chain


The situation that occurs when a buyer is reliant upon completion of the sale of his existing property, in order to complete on the purchase of his new property.

Completion


The point at which all transactions concerning the property's sale are concluded and legal transfer of ownership passes to the buyer.

Conditions of Sale


The details that determine the rights and duties of the buyer and seller. These may be national, statutory, or conditions imposed by the Law Society.

Contents Insurance


Insurance covering any loss of or damage to your possessions within the property.

Contract


A legal agreement between the seller and buyer of a property which binds both parties to complete the transaction.

Contract Race


Occurs when two parties have made an offer on the same house. The vendor will sell to whoever exchanges contracts first, ie: it's a race!

Conveyancer


A qualified individual such as a solicitor or licensed conveyancer who deals with the legal aspects of buying or selling a property.

Conveyancing


Traditional term used for the legal work involved in the purchase and sale of a property.

Covenants


Rules and regulations governing the property and contained in its title deeds or lease.