Glossary

Once a number of parties have noted an interest the Sellers may set a closing date for offers. This is usually 12 noon on a certain date and offers are invited to be submitted before that time on that particular day. You will normally be advised how many other parties have noted an interest but you will have no idea what they will be offering and it is at this stage that you must decide how much you are willing to offer depending on the valuation and level of interest. If your offer is unsuccessful your solicitor is not permitted to re-submit a higher offer on your behalf, unless invited to do so by the Selling Agents.

This occurs once the terms of the last contractual letter between the Purchaser’s Solicitor and the Seller’s Solicitor have been agreed. It is at this point that the contract becomes binding on both parties and normally neither party can withdraw without incurring certain penalties.

In more expensive properties it is not unusual for a deposit to be payable as an indication of the Purchaser’s good faith and this would normally be 10% of the price payable within 14 days of the contract being concluded. This may or may not be refundable in the event of the sale not proceeding and this should be discussed with your solicitor at the time.

A price may be stated as being a fixed price of, for example, £200,000. In this case, it is normal for the first written offer for this amount to be accepted. That is not to say however if there were two or three parties interested, a Closing Date may be set.

These are items such as furniture, carpets, curtains etc and other items which are not of a fixed nature. They should be specifically referred to in the Offer if they are to be included in the price although it is not uncommon for such items to be sold separately. Moveables do not attract Stamp Duty.

Your Solicitor will note an interest for you formally by contacting the Selling Agents and intimating your interest in the property. It is then professional courtesy on the part of the Selling Agents to advise all parties who have noted an interest formally through their Solicitors once a closing date has been set. The Sellers are not however obliged to set a closing date and they may accept an offer from any party at any time.

This is the formal written offer prepared by your Solicitor which contains the names of the parties, the property, the price, date of entry, details of any furniture etc. to be included and the other standard legal terms required in order to complete the conveyancing and to take legal title to the property. A time limit for acceptance is normally included in the Offer.

The purchase price may be stated as being offers over a specified sum. This normally means that the seller is expecting an offer in excess of the specified sum and will not normally accept anything less.

This is the Selling Solicitor’s formal written acceptance of the Offer in which a number of the Offer conditions are usually deleted and the titles and other papers exhibited for examination.

The brochure containing photos and a description of the property, prepared and circulated by the selling agents. They usually also contain details of any furniture, etc., is to be included in the price and the purchase price. In certain cases the purchase price is not disclosed and is available on request from the selling agents.

This is the date of entry provided for in the contract and is the date on which settlement will take place. At this time the purchase price is paid over to the Seller’s Solicitor in exchange for the title deeds, other documentation and the keys to the property. It is very important that you are in a position to settle at this time as if not then interest will normally be payable to the Sellers on the purchase price until you were in a position to do so.

This would be provided by a Specialist as recommended by the Surveyor in the Survey Report and may cover such matters as timber treatment, electrical wiring and the structural condition of the property. Again this should be done prior to offering as it is not normally open to the Purchaser to carry out any further surveys after the Offer has been submitted.

This is a tax charged by the Government which is payable in respect of the heritable element of a property and only affects you if you are buying a property worth more than £125,001. It is a tax paid by the Purchaser, not the Seller. For prices from £125,001 to £250,000 stamp duty is charged at 1% on the whole of the price. From £250,001 to £500,000 it is charged at 3% on the whole of the price and above £500,000 it is charged at 4% on the whole of the price. Please note these figures may change at the next Budget.

This will be prepared by your Solicitor prior to settlement and will provide details of the purchase price and outlays required at settlement.

It is for you as purchaser to establish the condition of the property and normally there is no recourse in this regard against the Sellers after you have purchased the property. It is therefore recommended that you instruct a Surveyor to carry out a survey of the property prior to offering. Depending on the age and apparent condition of the property there are various levels of survey to consider. A Scheme I Mortgage Valuation Survey Report is a basic walk around survey which provides a valuation and may disclose any material defects in the property which would require further investigation but that is all.

A Scheme II Home Buyers Report however is more detailed and would disclose more information about the property than a Scheme I Valuation. If the Surveyor uncovers material problems in the property he or she may recommend a further Specialist Report and this would be strongly recommended in order to ascertain the cost of any repairs required in this regard.