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30 Real Estate Terminologies You Must Know

26 Oct, 2021

While buying or renting a property in UK or reading the property related classified advertisements in newspapers and magazines, it can help to know some of the key real estate jargons. 

1. EPC: This stands for Energy Performance Certificate, which shows a property’s energy efficiency. A rating is given on a scale of A to G to each property. 
2. Conveyancing: This is when a property legally transfers from one owner to another. 
3. Mortgage: A home mortgage is a loan given by a bank, mortgage company or other financial institution for the purchase of a residence—either a primary residence, a secondary residence, or an investment residence. 
4. Stamp duty: The tax governments place on legal documents, usually in the transfer of assets or property.
5. Asking price: The listed price of the property, which may be negotiable.
6. Buy to Let: The purchase of a property for investment only purposes with the intention of letting the property out. 
7. Jack and Jill Bathroom: Bathroom with two entrances / exits. This type of bathroom often also has 2 wash basins. 
8. Gazumping: When a seller verbally accepts a buyer's offer but later sells the property to another buyer offering a higher price.
9. Survey: An examination of a property by a professional surveyor before purchase which should reveal any problems with the property being bought.
10. Encumbrance: Easement or Mortgage or other legal interest registered against the title of the property.
11. Leasehold: It means that you own the property, but the land upon which the property is built is owned by the freeholder. This gives you the right to occupy the property for as long as the lease is valid.
12. New Build: One that's brand new construction and has never been lived in.
13. Peppercorn Rent: This relates to a ground rent or service charge of a leasehold property and is usually very little but needs to be in effect for the lease to be active. 
14. Gazundering: When a buyer lowers their offer (usually at the final hour) so the seller is forced to accept their lower price or reject it and risk having to find another buyer.
15. Snagging: Where the developer of new build properties touches up paintwork, adjusts appliances and fixes any other faults within the property. A snagging survey is usually completed prior to the buyer moving in to spot minor cosmetic issues and check the quality of workmanship.
16. Deeds: Documents that show who owns the title of a property or land, along with any responsibilities on the property, e.g. what you can/cannot alter, rights of way, etc. Deeds are usually held by the mortgage lender until you pay off your mortgage, then they can be held by you or your solicitor.
17. Housing Health And Safety Rating System (HHSRS): The HHSRS is an official procedure for assessing the health and safety risks in residential properties in England and Wales. The regulations, which came into force in 2006, identify 29 specific hazards. When properties are found to have the highest level of risks, councils have a statutory duty to take enforcement action against the property owners.
18. NHBC (National House Building Council) Scheme: A guarantee offered on some newly built homes for structural defects occurring within a specified time after construction.
19. Solicitor: Professionally qualified legal expert who prepares documents for the sale or purchase of a property.
20. Pied-a-Terre: Property kept for temporary or occasional occupation.
21. Guarantor: Person responsible for repaying a debt if the borrower defaults as required by some lenders.
22. Freehold: Absolute ownership of both a property and the land on which it stands indefinitely.
23. Annual Percentage Rate (APR): Total cost of a loan expressed as an annual interest rate. Provides a useful comparison when reviewing mortgage offers.
24. Council Tax: This is an annual tax charged by local authorities in the United Kingdom that is based on the relative value of the property. Both homeowners and tenants must pay this tax, although students living in student accommodations may be exempt.
25. Let: The British term for renting.
26. Maisonette: An apartment that is set over two or more floors.
27. Escrow: A deposit of funds from two or more parties where a neutral party holds and regulates payment of the funds and documents until transaction is complete. 
28. Down payment: the financial amount a home-buyer must pay out of their own savings or other eligible sources before they can get a mortgage for a property.
29. OIEO: Offers in Excess Of. The lowest price a vendor or landlord will accept
30. OIRO: Offers In the Region Of. A price that a vendor or landlord would be willing to accept or negotiate around