Property Jargon
Understanding the terminology
Tenancy - The temporary occupation of a property by a tenant.
Tenancy agreement - A legal agreement designed to protect the rights of the tenant and landlord setting out all Terms and Conditions of the rental arrangements.
Tenant - An individual, group of individuals (up to four) or company who holds or possesses property for a time, in return for the payment of rent.
Tender - A sale or letting process usually conducted publicly that requires a prospective purchaser or prospective lessee to submit a bid for the subject, together with deposit cheque. The bidder whose tender is accepted is bound by the law of contract and cannot change their mind.
Tenure - Conditions on which a property is held (ie length of lease).
Term – May refer to a period of time, alternatively, it is a definition within an agreement.
Terraced house - A property that forms part of a connected row of houses.
Title deeds - Documents showing the legal ownership of a property.
Title insurance - An insurance policy which a buyer can take out to allow a sale to complete where there is a potential problem with the documentation in proving legal ownership of some part of the land he is buying.
Title search - An investigation, carried out by a conveyancing solicitor, into the history of ownership of a property. The search will check for liens, unpaid claims, restrictions or any other problems that may affect ownership.
Tracker Mortgage - A tracker mortgage is a form of the mortgage tied to the base interest rate as set by the European Central Bank (ECB) with an additional specified margin (often 0.75% to 1.0%) to cover the risk and administration costs that the lending institution incur.
Transfer deeds - The land registry document that transfers legal ownership from seller to buyer.
Under offer - The status of a property for sale, when the vendor has verbally accepted an offer from a buyer but contracts have not yet been exchanged.
Unregistered Title - This the term used to describe property which is not registered title. With an unregistered title, a chain of ownership going back to as far as forty years is produced giving a "root" of title.
Valuation - An independent valuation of a property is usually required by a financial institution, to give them comfort as to the security being offered for the mortgage they are granting.
Variable base rate - The basic rate of interest charged on a mortgage. This may change in reaction to market conditions, so monthly payments can go up or down.
Vendor - The vendor is the term to describe the person selling a property.
Viewing - A period of time during which a property for sale or rent is held open for public viewing.
Void period - Period of time where the property is empty/unoccupied by the tenant.
Withdrawn - Where the agreed reserve price f a property is not achieved at auction, the property is usually taken out of the auction process, however, it generally remains on the market and available for sale.
Yield - Income from a property calculated as a percentage of its value i.e. it is one's return on the value of one's investment usually net of purchasing costs i.e. net yield. There are various terms applied in relation to yields, each with their own underlying assumptions which should be understood if relying upon a quoted yield.
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