The language of homebuying

BRIDGING LOAN
A loan to ‘bridge the gap’ between the sale of your present house and the purchase of your new home when the dates don’t coincide (or until long-term finance comes through from your mortgage lender).

BUILD COMPLETE
Construction of your new home is now finished and once inspections are undertaken you will be notified of a legal completion date.

BUILDMARK
Your newly built Bromford home is covered by the National House Building Council (NHBC) 10-year Buildmark Warranty. You will receive an NHBC (or alternative provider) booklet which contains details of the warranty cover.  

COMPLETION 
The last stage in the home-buying process. When the deeds for your new home, along with other documentation, are handed over to transfer ownership to you. This is called legal completion.

CONSUMER CODE
The “code” sets mandatory requirements that home builders must meet in their marketing and selling of new homes and their after-sales customer service.

CONTRACT
The legally binding document drawn up by solicitors that details a property sale and lays out all the agreed terms and conditions to which both parties must agree, sign and date. Once the contract is signed, exchanged and a deposit paid, the sale becomes legally binding.

CONVEYANCING
The legal process of buying and selling a property.  

COURTESY VISIT
An appointment arranged during the Home Demonstration Inspection for a time a few days after you have moved in. At this visit the site manager will attend your home and discuss any outstanding ‘snags’ that you have identified.

COVENANT
A restriction of condition affecting the property which must be complied with by law.

DISBURSEMENTS
Expenses incurred by your solicitor when paying for local searches, stamp duty, land registry fees and other associated legal costs.

DEEDS
Legal papers relating to a property which transfer legal ownership to you.

DRAFT CONTRACT
Prior to the contract being signed, a draft contract is prepared by the seller’s solicitor and passed
to the purchaser’s solicitor. Once the contract has reached its final form it is known as an ‘engrossment’ and is ready for both parties to sign.

DEPOSIT
A part payment of the agreed purchase price paid by the buyer on exchange of contracts.

ENGROSSMENT
See ‘draft contract’’

EXCHANGE OF CONTRACTS  
The contracts are two identical documents; one is signed by the seller and the other by the purchaser. When these are exchanged, both sides are legally bound to complete the transaction.

FIXTURES
Items permanently installed in a building and included in the purchase price.

FREEHOLD
The full ownership of both the property and the land on which it stands.

HANDOVER
This is when you are presented with the keys to your new home. This generally occurs on the
day of legal completion.

HOME DEMONSTRATION 
A practical demonstration in your new home that takes place before legal completion. The demonstration shows you how appliances and systems work and allows you time to inspect your new home.

INSURANCE
There are two main insurances that you should take out when purchasing a new home. It is advisable to review insurance cover regularly.

1. Contents insurance: Which covers all items within your home and some policies allow you to remove certain items from the home and remain covered.
2. Buildings Insurance: Which cover the bricks and mortar of your home.

LAND REGISTRY FEES
These are paid through your Solicitor to register your ownership of the property with the Land Registry. The scale of fees is fixed by the Government.

LEASEHOLD
Land held under a lease for a number of years on which ground rent is paid.

LEGAL COMPLETION
See completion.

LOCAL AUTHORITY SEARCH
Carried out by a Solicitor, this establishes if your new home is likely to be affected by any planning decisions.

MANAGEMENT COMPANY   
Apartment buildings usually have a management company responsible for maintaining the main structure, common parts (e.g. stairs and hallways) and landscaped areas. 
On some developments, a management company may also maintain roads, street lighting and open spaces. The management company recovers its costs from each owner through a service charge. 
Your sales advisor/solicitor should be able to confirm in more detail

MORTGAGE
A loan secure on your home.

MORTGAGE APPLICATION
The formal request for a mortgage.

MORTGAGE DEED
The formal document that confirms the mortgage provider’s financial interest in your new home.

MORTGAGE INDEMNITY (INSURANCE/GUARANTEE) 
Your Mortgage Lender will usually require additional security if the loan is in excess of 70% or 80% of the purchase price. This involves a once only payment which can normally be added to your mortgage. The amount of the payment varies with the amount borrowed and the term of your loan.

MORTGAGE OFFER
A formal written offer of a mortgage made to you by your mortgage provider.

MORTGAGE PROTECTION POLICY 
An insurance policy is often arranged in conjunction with a repayment mortgage. The policy is taken out to ensure that the loan will be paid off should the borrower die before the end of the mortgage term. Insurance may also be available to protect your repayments in the event of redundancy.

MORTGAGE PROVIDER
A bank, building society or other financial institution offering home loans.

MORTGAGE VALUATION SURVEY 
Prior to making a mortgage offer your lender will have the property valued for mortgage purposes. You will be required to pay a fee to your lender which can vary, dependent on the purchase price and lender.

NHBC
The National House Building Council, a non-profit making body whose role is to both protect the home buyer and help the industry to construct good quality new homes. NHBC inspectors carry out spot checks and regular examinations on all properties at various stages of construction. The NHBC will also provide the 10 year Buildmark Warranty.

NHBC BUILDMARK COVER
A 10-year warranty from the National House Building Council covering your new home against specified risks.

NOTICE PERIOD
If you exchange contracts ‘on notice’ that is without a fixed legal completion date. The notice period is a timescale of 14 days and is the period in which legal completion takes place on a date agreed by the buyer’s and seller’s solicitors.

RESERVATION
When a customer pays a deposit and signs a Bromford Homes reservation form, the property is reserved at the agreed price for a specific time providing exchange of contracts takes place on an agreed date.

REGISTERED TITLE
A title of ownership registered at the Land Registry guaranteeing ownership.

RESTRICTIVE COVENANT
The seller of the property imposes a restriction on a particular use of the land.

SECTION 104 AGREEMENTS
A legal agreement made under the Water Act in which a developer secures the adoption of sewers by a water authority.

SECTION 38 AGREEMENT
A legal agreement under the Highways Act in which a developer secures the adoption of roads
and footpaths by the local highway authority.

SECTION 106 AGREEMENT
A legal agreement under the provisions of the Town and Country Planning Act 1990, usually made between the house builder and the local authority, in which the house builder makes financial contributions for local infrastructures to help sustain the local community in which it
is building. This could include providing affordable housing, or a public open space.

SERVICE CHARGE
An annual charge for the maintenance of communal facilities such as parking areas, gardens and communal areas within apartment buildings. This fee is normally paid to a management company.

STAMP DUTY LAND TAX (also known as Stamp Duty
This is a Government tax paid by the purchaser on completion of the purchase. Your Solicitor will automatically handle payment on your behalf.

SALES CONSULTANT
Your sales consultant is your main point of contact throughout the purchase process. They will discuss with you every aspect of the process and will support you until you have moved into your new home.

SEARCHES
Enquiries made by your solicitor in the early stage of the contract drafting. The enquiries are made of the district, or borough council to identify any issues that may affect your property. This could include proposals to build a factory or a road nearby, or historic rights such as coal mining or access over commons.

SITE MANAGER
Our build representative who supervises the building of the development. During the purchase process your sales consultant will introduce you.

SOLICITOR
A qualified law professional who is your personal legal representative and will act on your behalf to protect your interests during the home buying process.

TO CONTRACT
This is when a sale is verbally agreed only, but no contract has been signed, so there is no legally binding agreement. Once contracts are signed and exchanged, all the terms and conditions become legally binding for both the purchaser and the seller.

TITLE DEEDS
The legal documents which prove ownership of your new home.

TRANSFER OR LEASE
The formal document that actually transfers legal title in your new home to you. The title of the property is recorded at the Land Registry.

VALUATION
A professional opinion based on experiences and knowledge of the housing market at a given time, on the value of the property.

VENDOR
The seller of the property.

WILL
As a homeowner, it is advisable to make a will – or alter an existing one. Your Solicitor will be able to advise you.