The complex world of real estate can often be intimidating for many individuals – especially those delving into it for the first time. This aside, one can’t afford to ignore the terms and jargons used in this sphere, given their critical influence on property dealings. This article, by our team of expert conveyancing solicitors in Altrincham, aims to untangle and simplify some of the most frequently employed jargons in the real estate field.
Starting off, the term ‘conveyancing’ itself conveyancing solicitors altrincham may strike as intriguing to many. It refers to the legal process of transferring the ownership of a property from one individual to another. A conveyancing solicitor assists in these proceedings, ensuring all legal aspects are properly overseen, and the clients’ interests are prioritised.
Another widely used term in real estate is ‘freehold’. This implies that the property owner has full ownership of both, the property and the land it stands on. It is opposite to ‘leasehold’, where the ownership of the land goes back to the freeholder once the lease expires.
Closely associated with the above concepts is ‘commonhold’. It is a blend of both leasehold and freehold, mostly used in multi-occupancy buildings. Each individual owns the freehold of their flat, and the shared space is owned communally.
The term ‘gazundering’ might feel odd slipping off the tongue, but is pertinent in understanding property dealings. It denotes a situation where a buyer lowers their offering price than what was previously agreed, typically done just before a contract is exchanged. Its counterpart, ‘gazumping’, is when a seller accepts an offer from a buyer, but later accepts a higher offer from another party.
‘Mortgage’ is another important term you might come across frequently. It refers to the loan taken to buy a property where the property itself serves as the collateral. The borrower is obligated to repay the loan with the agreed interest over the stipulated term. A ‘mortgage term’ is the length of time you agree to pay back your mortgage.
In addition to the mortgage, there are several other fees involved in property transactions. ‘Stamp duty’ is a tax paid by buyers on properties costing more than a certain amount. ‘Conveyance fee’ is what you’d pay your solicitor for their services. ‘Surveys’ are assessments performed on a property before purchase to uncover potential structural issues.
An ‘exchange of contracts’ is when both the buyer and seller legally commit to the transaction, after which neither can back out without substantial financial penalties. Following this, the ‘completion’ occurs which entails the transfer of the remaining funds, and the buyer officially takes ownership of the property.
These jargons can feel overwhelming, but understanding these terms will certainly ease the intimidating process of property transfer. A proficient guidance of experienced solicitors like our team in Altrincham can further make this journey less daunting. Educate yourself and ensure you opt for professional legal advice to navigate successfully in the ocean of real estate.
