- (Mortgage/Finance) Broker
An intermediary who identifies, and places, customers requiring a loan or mortgage etc. with a company (Lender) able to provide it. The broker often carries out the administration to do with processing the loan.
- Capped Rate
Usually for a set number of months/years where the interest rate can go up and down but there is a maximum (capped) interest rate which it can not go above.
- Contract of Sale
(Referred to as the "Contract"): A legal document which sets out the terms and conditions the seller and the buyer enter into when a sale is to take place - the contract contains a description of the property
- Conveyance
The transfer of ownership of property from the seller's name to the buyer's name.
- Conveyancer
A person, used as an alternative to a solicitor, to carry out the legal work involved in buying and/or selling a property. Note: It should be checked that they are licensed to carry out this function.
- Covenant
An agreement by one party to adhere to certain terms, conditions or restrictions regarding a property. A covenant is not usually valid unless noted on the title to the land. The nature of the covenant should always be established and the question asked: What effect will this covenant have upon the future plans for the property?
- Credit score
The process of using specialised online credit search databases to identify an applicant’s credit status.
- Deposit
A deposit is normally paid by the buyer at the time of exchanging contracts; normally 10% of the total purchase price. Any amount paid earlier as an initial or part deposit will usually form part of the 10%.
- Deposit Guarantee Bond
A written guarantee from an insurance company on behalf of the buyer to the seller guaranteeing payment of all or part of the deposit.
- Disbursements
Miscellaneous fees and charges incurred during the conveyancing process, including search fees charged by Government authorities.
- Duty
A state government tax on financial transactions. For the sale of real estate, it is calculated according to the sale value. It also applies to the mortgage.
- Exchange of Contracts
Agreement signed by purchaser and vendor committing themselves to the transaction. Once this has occurred a legally binding contract is in existence and the purchaser must complete the purchase within a specific period of time.
- Fixed Rate
The rate is fixed for a specific number of years, so you know what your payments will be over that period. Following this period, the rate will usually revert to the lender's standard variable rate.
- Freehold
Land / Property is owned outright by the Freeholder. Whether the property is held on a lease or a freehold basis will be identified in the deeds to the property.
- Guarantor
A promise or legal undertaking given by one person (the guarantor) to another (the creditor) whereby the guarantor agrees to pay the debt if the principal debtor defaults.
Land / Property is owned outright by the Freeholder. Whether the property is held on a lease or a freehold basis will be identified in the deeds to the property.
