Conveyancing Glossary
- Gifted Deposit
- Gifted Deposit is a term used to describe a sum of money usually offered by the seller against the purchase price of a property towards the purchaser’s deposit. This kind of incentive is often seen in new build conveyancing transactions. Conveyancing solicitors acting on behalf of purchasing conveyancing clients using a mortgage to fund the purchase a required to report incentives such as gifted deposits to the mortgage lender who may vary the terms of the mortgage in response. Purchasing conveyancing clients should always inform the mortgage lender when making their official application for a mortgage of any incentives offered by a seller to ensure the incentive is acceptable to the lender. Failure to disclose an incentive to a mortgage lender by the purchasing conveyancing client or their conveyancing solicitors could be deemed mortgage fraud and is a serious offence. The seller’s conveyancing solicitors may ask the purchaser’s conveyancing solicitors to confirm a Gifted Deposit has been reported to the purchaser’s mortgage lender.
- Good and Marketable Title
- Good and Marketable Title means that the title for the property is clear for purchasing purposes. When a purchaser’s conveyancing solicitors submits a Certificate of Title to request the mortgage advance from a mortgage lender the conveyancing solicitors certify to the mortgage lender that the property has good and marketable title as revealed in the conveyancing enquiries and conveyancing searches and represents good security for the lender.
- Good Leasehold Title
- Good Leasehold Title is a conveyancing term seen in leasehold conveyancing transactions. This is a class of title awarded to only to leasehold property by the land registry. It is awarded when the freehold or larger leasehold titles for the land have not been presented for first registration to the land registry and therefore the land registry cannot ascertain that the landlord had the right to grant the lease in the first place. This is classed as a defect in title by conveyancing solicitors and will often have to have an indemnity policy agreed by the purchaser’s conveyancing solicitors with the seller’s conveyancing solicitors during the conveyancing enquiries stage to placed on risk during the conveyancing process to protect the buyer and mortgage lender from any losses should the title be challenged at a later date.
- Ground Rent
- Ground Rent is a term used in leasehold property conveyancing transactions. Ground rent is the rent payable under the terms of the lease for a leasehold property. Ground rent should be paid to the landlord whether or not a demand or bill has been received and a receipt should always be obtained from the landlord when payment has been made. It will be essential for the selling conveyancing client to provide this to their conveyancing solicitors for passing to the purchaser’s conveyancing solicitors during the course of the conveyancing. Purchaser’s conveyancing solicitors must ensure the Ground Rent has been fully paid to the date of completion of the conveyancing transaction. Ground rent can be collected annually and sometimes half yearly or quarterly. Ground rents on leasehold houses can be incredibly low particularly for leases granted some time ago. Occasionally a lease may set the ground rent as a token rent to give effect to the lease. The most common form of token rent is a peppercorn which in practise would never be paid. Conveyancing solicitors acting for purchasing conveyancing clients will not ask to see evidence of payment for a token rent.
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