First time buyer? First time seller? Not sure what everything means?
As estate agents, sometimes we speak our own language. Of lot of it sounds straight forward but, sometimes, you may hear or read some jargon that you’re not sure about.
Fear not, we’ve compiled this simple estate agent jargon busting guide for you to get your head around….
- Estate Agent: A professional or agency that assists with the sale, purchase, or rental of properties. They act as intermediaries between buyers and sellers or landlords and tenants.
- Vendor: The person selling the property. This is often used interchangeably with “seller.”
- Buyer: The individual or party interested in purchasing the property.
- Landlord: The property owner who rents out their property to tenants.
- Tenant: The person or party renting and occupying the property from a landlord.
- Valuation: This is the process of determining the estimated market value of a property, typically conducted by a qualified valuer or estate agent. It’s important for setting the right price for selling or renting a property.
- Listing: A property that an estate agent advertises for sale or rent. It includes all the details, such as price, description, and features of the property.
- Chain: A property chain is a sequence of linked property transactions. For instance, if you are selling a property to buy another, which in turn is contingent on the sale of a third property, this forms a chain. Chains can complicate transactions because they rely on multiple parties all successfully buying and selling properties in sequence.
- Conveyancing: The legal process of transferring property ownership from the seller to the buyer. This involves checks and paperwork to ensure a smooth and legal property transfer.
- Completion: The final step in a property sale when all legal and financial requirements are met, and the property officially changes ownership.
- Leasehold: A type of property ownership where the buyer owns the property but not the land it’s on. Leasehold properties are usually subject to a lease agreement, which defines the terms and conditions of ownership.
- Freehold: In contrast to leasehold, this means owning both the property and the land it’s on. It gives the owner more control over the property.
- Mortgage: A loan taken out to purchase a property. The property is often used as collateral to secure the loan.
- Deposit: A sum of money paid by the buyer as a show of commitment when an offer on a property is accepted. This deposit is typically held in a secure account until the completion of the sale.
- Offer: The price that a buyer is willing to pay for a property. This is usually made through the estate agent to the seller.
- Exchange of Contracts: The stage in a property sale where both parties (buyer and seller) exchange signed contracts. Once this happens, the sale is legally binding.
- Gazumping: This occurs when a seller accepts a higher offer from a different buyer after already accepting an offer from another buyer. It can be a frustrating experience for the initial buyer.
- Gazundering: This is when a buyer reduces their offer just before the exchange of contracts, putting pressure on the seller to accept the lower price.
- EPC (Energy Performance Certificate): This certificate provides information about the energy efficiency and environmental impact of a property. It rates a property’s energy efficiency on a scale from A (most efficient) to G (least efficient).
- Viewings: Appointments arranged by the estate agent for potential buyers or tenants to visit and inspect a property. Viewings are crucial for prospective buyers or tenants to get a feel for a property.
These terms should give you a good starting point for understanding the language used in the UK estate agent industry. If you have more specific questions or need further explanations, please feel free to ask!!