A GUIDE TO NEW MM
Caroline Vanner, Head of Residential Development Sales, of Savills Cardiff
Snagging
Identifying and making good and minor issues with the property prior to moving in – e.g. paintwork touch-ups, appliance adjustments
Off-plan Purchasing a new build property which has yet to be built
When buying a new build home, you are likely to come across a host of industry terms and phrases; some will be familiar and others less so. During New Homes Week, we take a look at some of the most common terms and what they mean for your purchase.
Vendor
The legal name sometimes used to describe the seller of the property.
Contract
The agreement that sets out the main terms that have been agreed – for example: price, address, names etc. Two copies are drawn up, and each party signs one in readiness for the exchange of contracts.
Reservation Fee A payment made to secure the property. At this point the property is taken off the market.
This
payment forms part of the purchase price. Deposit
The part of the purchase price which the buyer pays on exchange of contracts.
Subject to Contract Words used to indicate that an agreement is not yet legally binding.
Exchange of Contracts After this, the contract is legally binding, from penalties.
Completion Date
Completion of the legal transaction with all monies and documents having been distributed. the estate agent to release the keys . There are the former is the date by which the developer latter is the date by which they must have done so.
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Energy Performance Certificate (EPC) This contains information on energy use, energy performance, carbon dioxide emissions, and fuel bills.
Land Registry
The Government department that records who owns what land, and under what conditions.
Survey There are three main types of survey. Valuation and Full Structural survey (examines structural
Mortgage Offer A formal written offer made by a bank or building society to lend an approved amount to purchase a property.
Mortgage Redemption Figure
The amount required to repay the outstanding capital/interest of a mortgage.
Repayment Mortgage and part capital repayment. So long as you meet all of the payments required by the lender on time, your mortgage will gradually reduce until it is repaid in full
Property Information Form/Fixtures, Fittings and Contents Form Property
Information Form/Fixtures, Fittings
and Contents Form Standard forms about the property that the seller answers for their solicitor (for example: what will be left behind, details of
Requisition on title An enquiry relating to the completion agreements.
Seller’s Pack This comprises a Property Information Form, a Fixtures, Fittings and Contents Form, a copy of the title deeds and the draft contract.
Stamp Duty or LBTT (Scotland) A tax, paid by the buyer, that is calculated on the percentage rate applicable to each portion of the sale price.
Searches Checks of
local council records for planning
applications and restrictions etc. Title Deeds
Legal documents that prove ownership of land/ buildings, and the terms on which they are owned.
Transfer of Title The document that passes the ownership from the seller to the buyer.
Leasehold To be given ownership of a property but not the land it is built on. This normally requires payment of ground rent to the landlord. Leasehold terms are offered between 125-999 years.
Maintenance/Service Charge A charge made towards the upkeep of a freehold or leasehold property.
Estate Charge A charge made towards the upkeep of the site
Ground Rent
The annual fee which a leaseholder pays to the freeholder.
IFA
Independent Financial Advisor. Ombudsman
Independent professional bodies who investigate complaints on behalf of customers against estate agents, solicitors and insurance companies.
Memorandum of Sale / Sales Letters This document records the fact that both the buyer and seller have agreed to the transaction. usually records the details of the price being paid, the details of the seller and buyer and their respective lawyers. If there are any conditions to then this will form part of the Memorandum of Sale.
This is not a legally binding document.
For further information on buying a new build property, contact Savills in Cardiff on 029 2036 8900.
New Homes Wales and the South West
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