Buying a home can come with a lot of unfamiliar terms. This is a simple guide to the ones that tend to pop up and what they mean.
A
Agreement in Principle (AIP)
A written estimate from a lender showing how much you might be able to borrow before you apply for a mortgage. Also called a mortgage in principle or decision in principle.
Anti-Money Laundering (AML)
Legally required checks to help prevent financial crime. They confirm identities and make sure property sales follow government rules.
Authority to Exchange
Your solicitor will ask for your explicit consent once everything is ready. Giving authority to exchange means you’re happy to agree to the terms of the purchase and become legally bound to it.
B
Best and Final
Your strongest offer, usually made when one or more other people are also interested. You might be asked to submit it, or decide to offer it yourself, but there’s no opportunity to increase it later.
Boundaries
The legal lines that mark where the property ends and the neighbouring property begins.
Bridging Loan
A short-term loan that helps you purchase a new property before the sale of your current one goes through.
Building Insurance
Insurance that covers the cost of repairing or rebuilding the property if it’s damaged. What’s covered will depend on the policy.
Building Control Consent
Approval needed from the council or a registered inspector before doing certain building work. It makes sure the work meets safety, accessibility and energy standards set by Building Regulations.
Building Regulations
National regulations that set minimum standards for building work, including extensions and alterations. They’re enforced by the council to make sure homes are safe, accessible and energy efficient.
Building Regulation Completion Certificate
A certificate confirming that finished building work meets current Building Regulations. It’s issued after an inspection by the council or a registered inspector.
Building Survey
An extensive survey (also known as a Level 3 survey) that checks for faults or issues. It’s carried out by a qualified surveyor.
Buy-to-Let
Buying a property with the aim of renting it out to tenants, rather than living in it yourself.
C
Cash Buyer
You can purchase a property outright with money you already have, so you don’t need a mortgage.
Chain
A series of linked property transactions, where each one depends on the next. If one falls through, the whole chain can collapse.
Commission
The fee Ostrich charges the seller when they introduce you and you go on to purchase the property. It’s a percentage of the final sale price and is paid on completion.
Comparables
Recent sales of similar properties used to help work out a property’s value.
Completion
The final step in the sale when the property officially changes hands and you become the legal owner.
Completion Information and Undertakings Form
A form (TA13) completed by your solicitor near the end of the sale. It confirms key details about the property, sets out what documents will be handed over, and states the exact amount you must transfer to complete the purchase.
Condition Survey
A Level 1 survey used to check the condition of a new or nearly new home. It gives a basic overview, not a detailed report.
Contents Insurance
Insurance that protects your belongings in your home, such as furniture, electronics or clothes, if they’re lost, stolen or damaged.
Conveyancer
A legal professional who handles the process of buying or selling a home. They deal with contracts, searches and transferring ownership. They’re not usually qualified to advise on more complex legal issues.
Conveyancing
The legal process of buying or selling a property. It includes searches, reviewing contracts, exchanging contracts and transferring ownership.
Council Tax
A tax paid to your local council. It helps cover things like rubbish collection, schools and other local services.
Covenant
A legal condition in the title or lease that must be followed and usually applies to future owners too. A positive covenant requires the owner to do something (like maintain a fence). A restrictive covenant prevents the owner from doing something (like building an extension).
D
Deposit
Money you pay when contracts are exchanged, usually 10% of the purchase price.
Desktop Valuation
A property valuation carried out without visiting the property. It’s based on online data and recent local sales.
Disbursements
Extra costs paid on top of your solicitor’s fees, such as search fees, Land Registry charges or Stamp Duty.
Down Valuation
When your lender’s surveyor values the property at less than the price you’ve agreed.
Draft Contract
The first version of the contract sent by the seller’s solicitor. It includes the terms of the sale, property boundaries and what fixtures and fittings are included.
E
Early Repayment Charge
A fee you might have to pay if you repay your mortgage early, before the agreed term ends.
Easement
A legal right that lets one landowner use part of a neighbouring property for the benefit of their own. For example, a private right of way across a neighbour’s drive.
Energy Performance Certificate (EPC)
Shows how energy-efficient a property is and gives an estimate of its energy costs. It includes two ratings: one for energy efficiency and one for environmental impact. Both are shown on a scale from A (best) to G (worst).
Enquiries
Questions your solicitor sends to the seller’s solicitor to clarify details about the property.
Equity
The difference between the property’s current value and what the seller still owes on their mortgage.
EWS1 (External Wall System form)
A form used to assess the fire safety of a building’s external wall system, with particular focus on cladding. It applies mainly to residential buildings that are 18 metres (around six storeys) or taller. Lenders often ask for it during the mortgage process for these types of buildings.
Exchange of Contracts
The point where both sides sign and swap contracts. From this moment, the purchase is legally binding.
F
FENSA Certificates
A certificate issued by the Fenestration Self Assessment Scheme (FENSA) to confirm that replacement windows and doors meet building regulations.
First-time Buyer
You’ve never owned a residential property before and plan to live in the one you’re purchasing.
Fixtures and Fittings
Fixtures are things fixed in place, like radiators or kitchen units. Fittings are loose items like furniture or freestanding white goods. These are listed in a form called the Fittings and Contents form (TA10).
Flying Freehold
When part of a freehold property sits above or below land or property owned by someone else.
Freehold
You own the building and the land it stands on, with no time limit.
G
Gas Safety Certificate
A certificate to show the seller’s gas appliances are safe and meet legal standards.
Gazundering
When the seller accepts a lower offer from you, usually just before contracts are exchanged.
Gazumping
When the seller accepts a higher offer from someone else after already agreeing to sell to you.
Ground rent
An annual fee paid by a leaseholder to the freeholder for the land their home sits on.
Guide Price
An indication of the minimum price the seller hopes to achieve for the property.
H
Homebuyers Survey
A mid-level survey, also known as a Level 2 survey. It’s designed for homes that are conventional in type and construction, and in reasonable condition. It gives more detail than a Level 1 Condition Survey but less than a full Level 3 Building Survey.
I
Indemnity Policy
An insurance policy that covers certain legal risks with a property — like missing documents or old planning breaches. It’s usually a one-off payment made during conveyancing.
Indicative Offer
A non-binding offer you make that gives the seller a sense of whether you’re in the same ballpark on price.
L
Land Registry
The government organisation that keeps official records of who owns land and property in England and Wales.
Land Registry Charge
A legal entry on the property’s official title, showing that someone else, often a mortgage lender, has a right over the property until a debt is repaid.
Lease
A legal agreement that lets you live in or use a property for a set number of years. It’s made between you and the freeholder and sets out both sides’ responsibilities.
Lease Extension
A legal agreement that adds more years to your lease, so you can stay in the property longer.
Leasehold
You own the property for a fixed number of years, not the land it sits on. When the lease runs out, ownership returns to the freeholder — unless you extend it.
Leasehold Information form (TA7)
A form the seller fills out with key information about the lease. It covers things like ground rent, service charges and how the building is managed. It’s part of the management pack your solicitor reviews.
Lender's Panel
A list of solicitors and conveyancers approved by a mortgage lender. The lender will only work with someone from this list.
Listed Building
A building with special historic or architectural importance. It’s legally protected, so you need permission to make changes.
Listed Building Consent
Permission you must get before making changes to a listed building that could affect its character.
Loan-to-Value
A percentage that shows how much of the property’s value you’re borrowing. For example, a £90k mortgage on a £100k home is 90% loan-to-value.
Local Authority Search
Checks of council records to find any restrictions or issues affecting the property — like planning history, road schemes, flood risk or land charges.
Locum Solicitor
A solicitor hired on a short-term basis, often to cover leave or help during busy periods.
Long Stop Completion Date
The latest date by which the conditions must be met (or agreed to be skipped) for the sale to complete. It sets a final deadline and gives both sides certainty that the sale won’t be delayed indefinitely.
M
Management Pack
A set of documents provided by the managing agent, landlord or freeholder when a leasehold property is being sold. It includes things like ground rent, service charges, planned works and the Leasehold Information Form (TA7). Your solicitor will review it during the purchase.
Memorandum of Sale
A document we prepare once an offer is accepted. It confirms the key details and is shared with both solicitors to get the legal process started.
Mortgage
A loan you use to buy a property. You repay it over time, with interest, to the mortgage lender.
Mortgage Broker
A financial expert who helps you find a mortgage by comparing different lenders, interest rates and terms.
Mortgage Offer
A formal document from your lender confirming your mortgage has been approved. It sets out the full terms and conditions of the loan.
Mortgage Valuation
A basic valuation carried out for the lender to check the property is worth what you’re paying and suitable for the mortgage.
O
Offer
A proposal you make to purchase a property, including the price and any conditions such as timings, funding or chain position.
P
Peppercorn Rent
A very small or symbolic amount of rent paid by a leaseholder to a freeholder. “Peppercorn” means it has little or no economic value, but it keeps the lease legally valid.
Planning Permission
Permission from the local council to build something or change how land or buildings are used.
Proof of Funds
Documents that show you have enough money to go through with the purchase, such as bank statements or a mortgage offer.
Property Information Form
A form (TA6) that the seller fills out with key details about the property, such as boundaries, changes made or known issues. It’s passed to your solicitor.
Purchaser
The legal term for you as the buyer, used in contracts and official documents.
R
Report on Title
A report prepared by your solicitor summarising the legal details of the property, including any issues or restrictions you should know about.
Reinstatement Cost
The cost of rebuilding a property if it’s completely destroyed, for example in a fire. It covers returning it to its original state, known as its pre loss condition.
Retention
Money held back from your payment on completion, usually kept by the seller’s solicitor. It’s agreed in advance to make sure something is finished after the purchase, such as repairs or final paperwork. The money is released once that’s done.
Right of First Refusal
A legal right that gives leaseholders the first chance to buy the freehold if the freeholder decides to sell it.
Royal Institution of Chartered Surveyors (RICS)
The professional body that sets standards for property and construction. Many types of surveys and valuations must be done by a RICS-qualified surveyor.
S
Section 20 Notice
A legal notice telling leaseholders about planned works or services they’ll have to pay towards.
Section 21 Notice
A notice a landlord can use to end a tenancy without needing to prove fault, as long as they follow the right legal process.
Section 5 Notice
A notice the freeholder must send to leaseholders if they want to sell the freehold. It triggers the leaseholders’ Right of First Refusal, giving them the first chance to buy it before it’s offered to anyone else.
Service Charge
A regular payment made by leaseholders to cover upkeep of shared parts of a building, like hallways, roofs or gardens.
Share of Freehold
When you buy a leasehold flat but also own a share of the freehold, usually with other flat owners in the building.
Simultaneous Exchange and Completion
When contracts are exchanged and the sale completes on the same day.
Solicitor
A qualified lawyer who handles the legal side of buying or selling a home. They manage contracts, carry out searches, and make sure ownership is transferred properly.
Stamp Duty Land Tax (SDLT)
A government tax the buyer pays when purchasing a property. The amount depends on the price and whether the buyer is a first-time buyer, moving home, or buying an additional property like a second home or buy-to-let.
Subject to Contract
You’ve agreed a purchase price, but contracts haven’t been exchanged yet, so the purchase isn’t legally binding.
T
Tenure
The type of legal ownership you have, usually either freehold or leasehold.
Title
The official record of who owns a property, held by HM Land Registry.
Title Plan
An official plan showing the boundaries of a property, based on what’s recorded in the title.
Transfer Deed
The legal document used by your solicitor to transfer ownership of the property to you. It’s registered with HM Land Registry and is also called a TR1 form.
U
Under Offer
Your offer has been accepted, but contracts haven’t been exchanged yet, so the purchase isn’t legally binding.
V
Vacant Possession
The property will be empty when the purchase completes, with no one living there and no belongings left behind.
Variable Rate Mortgage
A type of mortgage where the interest rate can go up or down. The buyer's monthly repayments change depending on wider interest rates.
Vendor
The legal term for the seller, used in contracts and official documents.