Jargon Buster

A B C D E F G I J L M N O P R S T U V Y

Capital

The amount of money either put into buying a property or the deposit placed on a property. (Also known as equity.)

Capped-Rate Mortgage

A capped rate mortgage is very similar to a fixed rate mortgage except that if the variable rate drops below the capped rate, the borrower will make payments based on the lower variable rate. However, should rates increase the payments will be capped and will not rise over the capped rate.

Chain

Occurring when a buyer is reliant upon completion of the sale of their existing property in order to complete on the purchase of the new property.

Commission

The fee payable to the estate agent for selling the property.

Common Areas

Amenities such as corridors, hallways, lobby, pool, toilets provided for the comfort and use of all occupants, owners, tenants, or users of a building or building complex.

Completion Date

The date that the monies are transferred and the buyer becomes the legal owner of the new property.

Conditions Of Sale

The details that determine the rights and duties of the seller and buyer. These may be national, statutory or the Law Societys conditions.

Contents Insurance

Insurance that pays for damage to, or loss of, an individuals personal possessions whilst they are located within that individuals home.

Contract

A legal agreement between the seller and buyer of a property, which once exchanged, binds both parties to complete the transaction.

Contract Race

When more than one party has made the same offer on a property, it will be sold to the first person to successfully exchange contracts.

Conveyancer

A qualified person who deals with all the legal aspects of buying and selling a property. Typically a solicitor or licensed conveyancer.

Conveyancing

The legal process enabling the transfer of the property from the vendor to the purchaser.

Council of Mortgage Lenders (CML)

The CML is the trade association for the residential mortgage lending industry.

Covenants

Rules and regulations governing the property constituting a pledge to do or refrain from doing something, contained in its Title Deeds or Lease.

Credit Check

The process of evaluating an applicants loan request in order to determine the likelihood that the borrower will live up to his/her obligations.

Credit History

A record of a consumers ability to repay debts and demonstrated responsibility in repaying debts.