Here is the final part of your Property investment jargon buster. There are some very important terms here that you need to fully understand if you are going to be a successful property investor.
Study these terms and understand them. Once you have a good grasp of their meaning you will be a lot more confident in your dealings with others. In this final section we bring you the terms from Q through to Z.
Thank you to abelestates.co.uk for the original list.
Property Investment Jargon Buster Q-Z
If a mortgage is not paid over a period of time, the lender may ultimately take ownership of the property by the process of repossession.
These are conducted by your lawyer to check if there is anything that might affect the current or future value of the property. It is compulsory to have a local authority search before exchanging contracts.
Share of freehold
This is when the freehold of the property is owned by a limited company and the shareholders are the owners of the property, usually the owners of flats within that building.
Where only one estate or letting agency firm is instructed by a seller or landlord to offer a property for sale or to rent.
Sole selling rights
Where an estate agency or person is granted “sole selling rights” by the seller of a property, they will be able to claim an agreed fee regardless of who actually introduces the buyer.
Stamp Duty Land Tax (SDLT)
The tax paid to the government by the purchaser of a property. Rates of SDLT can vary. Changes in December 2014 mean that the tax rates are “banded” progressively in the same way as income tax. Nothing is payable on the first £125,000 of the purchase price. From £125,001 to £250,000 2% is payable and from £250,001 to £925,000 the rate is 5%. £925,001 to £1.5 million is 10% and over £1.5 million it is 12%.
Subject to contract
Where contracts are still not exchanged and nothing is yet legally binding on either seller or buyer.
This is a report prepared by a qualified building surveyor to check the structure for any faults. Home owners can choose from three main types of structural survey, depending on how much information they want.
Possession of a property by a tenant under the terms of a lease.
The legal agreement governing the occupation of a property by a tenant.
Tenancy Deposit Scheme (TDS)
An insurance-based scheme run by The Dispute Service Ltd. for the protection of tenancy deposits and the resolution of disputes between landlords, agents and tenants concerning the return of deposits at the end of a tenancy. It is one of three schemes approved for tenancy deposit protection.
The person who has temporary possession of a property under a lease or tenancy agreement.
The mode of holding ownership of a property: for example, leasehold or freehold.
Title burdens (Scotland only)
Conditions included in the title deeds, including restrictions on use, rights and obligations.
Documents detailing and confirming the legal ownership of a property.
The final legally binding document that transfers the property and all its rights from the seller to the buyer.
A property becomes “under offer” when a seller accepts an offer from a buyer and the legal processes of the transaction begin.
Valuation (or market appraisal)
A term often used by estate agents to cover the process of them giving an opinion of the open market value of a property.
The person selling a property.
We hoped you have enjoyed and learned a lot from our three part property investor jargon buster series. There will be other terms that you will come across that are not included here as these are the most common terms. Read, learn and prosper.