Conveyancing Glossary
- Caveat Emptor
- This is a Latin term which legally applies to the purchase of anything and is not exclusively used within conveyancing. It essentially means buyer beware and puts the onus on any purchasing conveyancing client involved a conveyancing transaction to ensure they thoroughly investigate a property before entering into a conveyancing contract to purchase. This would include ensuring conveyancing solicitors are instructed to deal with the conveyancing on their behalf. It also applies in a conveyancing transaction to any chattels (term used in conveyancing relating to items of fittings or contents) included with the property. When additional items are included with the property conveyancing solicitors advise in their conveyancing duties that items are inspected and if necessary by a suitably qualified person (particularly in the case of electric or gas appliances and central heating boilers).
- Certificate Of Title (Also Known As Report On Title)
- A term used commonly in conveyancing. It is a formal certificate that is sent to a mortgage lender by conveyancing solicitors in order to certify the title to the property is good and marketable and to request release of the mortgage monies to the conveyancing solicitors for use in completing the conveyancing purchase transaction. It is in a standard form and provided by the bank or building society lending the mortgage advance and has been agreed for use in conveyancing by the mortgage lenders and law society. This will usually be sent to the mortgage lender by the buyer’s conveyancing solicitors at the point in the conveyancing process following conclusion of conveyancing title investigations and exchange of conveyancing contracts.
- Cesspit
- A term used in conveyancing often when dealing with conveyancing transactions involving rural property. A cesspit is a receptacle for foul drainage which requires emptying on a regular basis. This form of drainage system is often employed to provide foul drainage means for rural properties when connection to the mains sewerage system is impossible. As part of the conveyancing process purchasing conveyancing solicitors are required to check the drainage arrangements when acting for a purchasing conveyancing client. A cesspit should not discharge any sewerage into the environment. A part of the conveyancing process for purchasing conveyancing solicitors is to ascertain how foul drainage discharged from the property is dealt with.
- Chain
- A widely heard term in conveyancing to describe the parties involved in a conveyancing transaction. Conveyancing chains often begin with a first time buyer or buy to let investor and can then go on to include a number of parties who are both selling and buying a property and require completion of both conveyancing matters on the same day. The longer a chain in conveyancing is, the more complicated the conveyancing process can be and the more delays can be experienced in the conveyancing process as many different parties all have to investigate title, obtain their formal mortgage offer and agree to completion of the conveyancing on a certain date. With long conveyancing chains sales and purchases can fail more frequently due to delays in the conveyancing process leading buyers and sellers to withdraw prior to completion of the conveyancing.
- Chancel Search
- A specific conveyancing search a chancel search is carried out by the purchaser’s conveyancing solicitors against a property to check if it is likely to be affected by Chancel repair liability. A Chancel search is one of the conveyancing searches used as part of the conveyancing process. Chancel repair liability matters in conveyancing as it places an obligation on a property owner to pay an amount of money to be used towards the repair of the church’s chancel. Although chancel repair liability is not claimed frequently it has been claimed and in one case amounted to almost a quarter of a million pounds. Conveyancing solicitors carry out this search on a purchasing conveyancing client’s behalf when purchasing a property to check for this liability. If a liability is revealed conveyancing solicitors will report this to the purchasing conveyancing client may ask the sellers conveyancing solicitors to provide an insurance policy to provide cover for this risk on completion of the conveyancing for the purchase to afford the purchasing conveyancing client protection against losses for chancel repair liability.
- Charge (Or Legal Charge)
- In conveyancing terminology a Charge is a legal document that creates a financial burden (charge) against the property when the property has been used as security for the loan. Conveyancing solicitors as part of the purchase conveyancing process must ensure charges are registered when acting on behalf of mortgage lenders. Selling conveyancing solicitors acting on behalf of selling conveyancing client will have to ensure charges are redeemed on completion of the conveyancing sale transaction and will usually provide an undertaking to purchaser’s conveyancing solicitors promising this will be done. Including within the term Charge for conveyancing purposes are Mortgages and Secured Loan Agreements.
- Chattels
- This term is used in conveyancing by conveyancing solicitors to describe items of personal property that may be included within the sale price of a property and will usually be detailed on an accompanying form called the fittings and contents list which will form part of the conveyancing contract. Not all conveyancing contracts will include chattels. The Fittings and Contents List is sent by the selling conveyancing solicitors to be completed by the selling conveyancing client at the start of the sale conveyancing process. The Fittings and Contents List will then form part of the conveyancing contract documents issued to the buyer’s conveyancing solicitors by the seller’s conveyancing solicitors. The List will then be included within the conveyancing contract for the purchase. Any Chattels price shown on the conveyancing contract or conveyancing agreement for the sale of the property will be completed with a sum by the seller’s conveyancing solicitors when additional items are being purchased by the purchasing conveyancing clients where their cost is not included in the sale price of the property.
- Client Account
- Conveyancing solicitors and conveyancers must keep monies belonging to conveyancing clients in a separate bank account from their own (the firm’s) money. Each conveyancing solicitors firm or licensed conveyancing firm must have a separate bank account called client account in which client money is kept to be used during the course of a conveyancing transaction.
- Client Care Letter
- This is a formal document sent to the conveyancing client by the conveyancing solicitors setting out the terms of retainer between and individual and their instructed conveyancing solicitors. This must be provided to every conveyancing client at the start of the conveyancing process by their chosen conveyancing solicitors. The conveyancing solicitors may ask the conveyancing client to sign an acknowledgement of receipt of the client care letter for the conveyancing solicitors file. The Law Society set out the rules relating to the contents of the client care letter.
- Coal Authority Search
- A conveyancing search instructed by the purchaser’s conveyancing solicitors conducted by the coal authority as to whether a property is likely to have been effected by current or past coal mining works. This conveyancing search is commonly required for conveyancing transactions involving properties located in the North, Midlands or Wales. The Coal Authority provides a list of local area names which allow conveyancing solicitors to ascertain when a property is in an area that requires a coal authority search. Conveyancing solicitors acting for purchasing conveyancing clients will confirm if a Coal Authority conveyancing search is required in the early stages of the conveyancing process.
- Completion Date
- In conveyancing terms by conveyancing solicitors this word is used to describe the day on which legal completion of a sale or purchase of a property occurs. For a purchasing conveyancing client this is when the keys for the property will be passed to them and for a selling conveyancing client the day that they will formally vacate the property and hand over the keys. The purchaser’s conveyancing solicitors will send the purchase money to the seller’s conveyancing solicitors on the completion date. This is the end of the conveyancing process for the conveyancing client although not for the conveyancing solicitors. The purchaser’s conveyancing solicitors will attend to the conveyancing purchase post completion stage including submitting the stamp duty land tax return and attending to the registration process. The seller’s conveyancing solicitors will attend to the sale conveyancing post completion stage including repayment of any mortgages secured on the property and obtain any formal discharges required by the purchasing conveyancing solicitors. The completion date is normally “fixed” on exchange of contracts, the date previously having been agreed with both selling and purchasing conveyancing clients and confirmed via exchange of conveyancing contracts between both the seller’s conveyancing solicitors and the purchaser’s conveyancing solicitors. However, a completion date in conveyancing may be triggered by an event such as on receipt by a purchaser’s conveyancing solicitors of a notice to complete from a seller’s conveyancing solicitors. This is a particularly common arrangement in conveyancing transactions when conveyancing clients are purchasing a property “off plan” or new build when a fixed completion date cannot be guaranteed by the seller’s conveyancing solicitors.
- Completion Statement
- Conveyancing solicitors use the term completion statement to refer to the financial statement calculated by the conveyancing solicitors. The completion statement is sent to a conveyancing client by the conveyancing solicitors prior to the completion date. The completion statement will detail all payments received or to be received (such as conveyancing search fees and mortgage monies) into the conveyancing solicitor’s client account and all payments to be made from the conveyancing solicitors client account to complete the conveyancing process (such as mortgage repayment amount in the case of a sale or stamp duty in the case of a purchase) by the conveyancing solicitors. The completion statement will usually show the amount required by the purchasing conveyancing solicitors to complete the conveyancing of a purchase conveyancing transaction or the amount due back to a selling conveyancing client from the conveyancing solicitors on completion of the sale conveyancing transaction. Conveyancing solicitors will usually require completion monies for a purchase conveyancing transaction to be deposited into the conveyancing solicitors client account the day prior to completion.
- Compulsory Purchase Order (Cpo)
- A Compulsory Purchase Order is granted to a local authority or other authority when it is decided that land is required to be purchased by the authority for “public interest” reasons. The local search result obtained by the purchaser’s conveyancing solicitors will contain an entry if the property is the subject of a Compulsory Purchase Order. It is an important entry to check for by the purchasing conveyancing solicitors acting on behalf of a purchasing conveyancing clients. In conveyancing transactions this entry can often be seen by conveyancing solicitors when carrying out conveyancing for a property in “regeneration or redevelopment areas” or can occur when a new road is required. The existence of a Compulsory Purchase Order in relation to a particular property revealed in the conveyancing process by the local search means that the local authority or other government body has the right to acquire the property and the property owner must undergo the conveyancing process, instruct conveyancing solicitors and sell it. Conveyancing solicitors are required to report a Compulsory Purchase Order to the purchasing conveyancing clients and any mortgage lender. Often a conveyancing client would often not wish to proceed to exchange of conveyancing contracts and completion when a property is subject to a Compulsory Purchase Order and may instruct the conveyancing solicitors to discontinue the conveyancing process and return all documents to the seller’s conveyancing solicitors. There are remedies for compensation to be paid to the owner required to sell a property under a compulsory purchase order.
- Conflict Of Interest
- Conveyancing is unusual in terms of the law as it is one of the only areas where conveyancing solicitors may accept instructions to act on behalf of more than one party in the conveyancing transaction. Usually for conveyancing solicitors this means acting on behalf of the buyer or seller of a property and the mortgage lender. The mortgage lender will normally ask the conveyancing clients chosen conveyancing solicitors to also act on their behalf in the conveyancing transaction. This is because conveyancing solicitors are generally pursuing the same aim in that of successfully completing the conveyancing process for the purchasing conveyancing client and securing the mortgage on a property with clear, good and marketable legal title in fulfilment of the conveyancing solicitors instructions from the lender. If matters arise during the conveyancing process carried out by the conveyancing solicitors which the conveyancing solicitors may deem to be a conflict of interest between the purchasing conveyancing and client the conveyancing solicitors will be required to cease acting. This can happen if facts arise which should be disclosed to one of the parties but the other party is not agreeable to such disclosure. This situation, thankfully, does not arise commonly in conveyancing transactions.
- Conservation Area
- This is an area that has been defined by the local authority as containing buildings/properties with particular historical importance. Such entries would be revealed by the local search result obtained by conveyancing solicitors as part of the conveyancing process or supplied to the purchaser’s conveyancing solicitors by the seller’s conveyancing solicitors with the HIP. Owning a property within a conservation area means consent must be sought from the local authority when affecting repairs or alterations to the property or even to cut or lop a tree. Purchaser’s conveyancing solicitors will advise conveyancing clients if the property is within an area of this type and raise appropriate enquiries with the seller’s conveyancing solicitors. When buying a property in a conservation area for a conveyancing client the buyer’s conveyancing solicitors will ensure all alterations have the appropriate consent by raising conveyancing enquiries with the seller’s conveyancing solicitors and asking the seller’s conveyancing solicitors to provide document evidence.
- Contaminated Land
- Contaminated land is land classified under legislation as having been contaminated usually by substances released into the land by way of previous commercial usage. An environmental search carried out during the conveyancing process by the purchasing conveyancing solicitors acting on behalf of the conveyancing client usually provides a certificate confirming the land is not contaminated land. Occasionally the environmental search result sent to the conveyancing solicitors is unable to confirm the land as “not contaminated” in which case further investigations should be carried out by the purchasing conveyancing solicitors with the seller’s conveyancing solicitors in relation to the contamination issues. Purchaser’s conveyancing solicitors may not be able to give a clear certificate of title to the mortgage lender if a conveyancing environmental search fails to return a “passed” certificate. Purchaser’s conveyancing solicitors may in some instances be able to proceed with the conveyancing transaction if an insurance policy is purchased to protect against losses incurred as a result of contaminated land.
- Contract (Also Known As Agreement)
- The contract in conveyancing is the formal legal document setting out all the terms of the sale and purchase of a property. It is normally drafted in accordance with the current and up to date “Standard Conditions of Sale” which have been agreed by the law society to be fair and equitable for both sides of a conveyancing transaction and is usually drafted by the seller’s conveyancing solicitors and sent to the purchasers conveyancing solicitors at the start of the conveyancing process. It may be amended by seller’s conveyancing solicitors with the insertion of “Special Conditions” and may be amended further by the buyer’s conveyancing solicitors to ensure their conveyancing client is not disadvantaged and returned to the selling conveyancing solicitors. One copy of the conveyancing contract will be sent by the conveyancing solicitors to be to their respective conveyancing clients and signed by both the seller’s and purchasers when advised by the conveyancing solicitors. The conveyancing contract will usually be held on a conveyancing solicitors file until all parties are ready to proceed exchange of conveyancing contracts. Once signed by all parties and following conclusion of the conveyancing title investigations by the purchasing conveyancing solicitors contracts will be formally “exchanged” by both the purchasing conveyancing solicitors and selling conveyancing solicitors in accordance with a law society formula used in conveyancing. The formula used by the conveyancing solicitors will vary in accordance with the location of the contracts when exchanged.
- Contract Race
- A contract race occurs when a selling conveyancing client instructs conveyancing solicitors to issue contracts to two or more parties respective conveyancing solicitors wishing to proceed with the conveyancing process and purchase the property. The race element refers to the race to exchange contracts between the competing purchaser’s conveyancing solicitors and the “winner” of the race will be the purchasing party whose conveyancing solicitors affect a formal exchange of contracts first. The selling conveyancing solicitors will inform the purchaser’s conveyancing solicitors that they have issued conveyancing contracts to more than one party. Contract races are not common in normal conveyancing transactions and most conveyancing clients wish to avoid this type of conveyancing transaction.
- Contract Rate
- Contract rate is shown as an interest rate on the first page of most conveyancing contracts or agreements. It sets out the rate of interest payable on the contract should either party to the conveyancing transaction fail to complete the contract on the completion date as agreed during the conveyancing process.
- Contract Time
- The conveyancing contract will usually contain a specific time by which legal completion should have been effected and will be shown on the conveyancing contract drafted by the seller’s conveyancing solicitors. The time standard in most conveyancing contracts is 2pm but may be amended by either the seller’s conveyancing solicitors or purchaser’s conveyancing solicitors with the insertion of a “Special Condition” varying the time. The contract time is important for sellers as it specifies the time the property must be emptied and vacated by on the completion date and is important for conveyancing solicitors to ensure funds are available to complete conveyancing transactions in good time to ensure conveyancing contracts are not breached unnecessarily incurring additional costs for conveyancing clients.
- Conveyance (Or Transfer)
- In conveyancing a Conveyance is the formal document that transfers ownership of freehold property from one party to another. On conveyance of a property rights, exceptions, reservations and indeed covenants can also be agreed in relation to the property and incorporated into the conveyance. Former conveyances of the property will contain the details of any rights granted for the benefit of the property (such as rights of way) and any rights reserved over the property for adjoining property. A conveyance may also contain restrictive covenants and copies of former conveyances will often be requested by the buyer’s conveyancing solicitors from the seller’s conveyancing solicitors in order that a buyer’s conveyancing solicitors can ascertain what covenants the property is subject to and inform the conveyancing client. Copies of such conveyances will be provided to a purchaser by their conveyancing solicitors to ensure they are aware of the covenants attached to the property they wish to buy. In modern conveyancing transactions in England and Wales, most conveyances are affected by a standard form of document prescribed by the land registry. Conveyancing solicitors use these documents in almost every conveyancing transaction and the most common is a form TR1 or Transfer or a form TP1 or Transfer of Part. TR1’s or Transfers are also used by conveyancing solicitors to transfer the ownership of a leasehold property such as a flat in modern conveyancing and count as the formal “assignment” of the remainder of the term of an existing lease for conveyancing purposes. TP1’s are most common in conveyancing transactions involving “new build” property. A conveyance is also known as a “purchase deed” in conveyancing.
- Conveyancing
- Conveyancing is the term used to describe the transfer of land or property ownership from one party to another. Conveyancing transactions are normally carried out by Solicitors firms by specialist conveyancing solicitors or Licensed Conveyancers.
- Conveyancing Executive
- A conveyancing executive is usually an unqualified property lawyer that specialises in conveyancing transactions. A conveyancing executive will normally be employed to work for a Solicitor’s firm in the conveyancing department or a Licensed Conveyancing company and their work will be supervised by a qualified experienced conveyancing Solicitor or Licensed Conveyancer.
- Council Of Licensed Conveyancers (CLC)
- The governing body responsible for the formal conveyancing training and award of qualifications to Licensed Conveyancers.
- Council Of Mortgage Lenders (CML)
- A very important body for conveyancing solicitors undertaking conveyancing transactions as most mortgage lenders subscribe to the Council of Mortgage Lenders and publish their particular conveyancing instructions to conveyancing solicitors in relation to the conveyancing and legal title of the property in the form of the CML Lenders Handbook Part 1 & 2. Part 1 deals with the general requirements applicable to all mortgage lenders such as the requirement that conveyancing solicitors must check identification in accordance with CML’s instructions. Part 2 is specific for each mortgage lender such as the Halifax, Nationwide Building Society or Abbey. These documents form part of the conveyancing solicitors instructions from the lender and a conveyancing solicitor must ensure legal title to a property conforms to the individual mortgage lenders requirements.
- Covenant
- A covenant is a term used in conveyancing and is a legally binding agreement or promise to do something or NOT to do something which can be incorporated into a conveyancing contract conveyance or lease for a property. Covenants can be either positive and detail something that must be done or restrictive and detail something that must NOT be done. Restrictive covenants in freehold conveyancing transactions run with the land unless they are deemed to be acquiesced and no longer enforceable due to time lapse from the start of the breach. When purchasing a property subject to covenants a purchaser’s conveyancing solicitors will require sight of copies of any deeds containing covenants that affect the property. These copies will be requested from the seller’s conveyancing solicitors by the purchasers conveyancing solicitors during the conveyancing title investigation and enquiries stage. The purchaser’ conveyancing solicitors will supply copies of documents to the purchasers during the conveyancing process to ensure they are aware of the covenants to which they will be subject if the purchase proceeds to legal completion. The purchaser’s conveyancing solicitors will also check with the seller’s conveyancing solicitors that none of the covenants have been breached as a part of their duties in a conveyancing transaction.
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