Property glossary: selling and buying terms explained

Selling or buying a home brings with it a vocabulary of legal, financial and estate agency terms. This glossary explains 82 of them in plain English and notes where the rules in Scotland, Wales or Northern Ireland differ.

• Additional Dwelling Supplement (ADS): A Scottish tax charged on top of Land and Buildings Transaction Tax when a buyer who already owns a home buys another residential property. For transactions on or after 5 December 2024 it is 8% of the whole purchase price. A buyer replacing their main home may be able to reclaim it once the previous home is sold.
• Agency agreement: The written contract between a seller and an estate agent setting out the fee, the type of agency, the tie-in period, the notice needed to end it and any other charges. Under the Estate Agents Act 1979 the agent must give the seller these terms in writing before the seller is committed.
• Agreement in principle (AIP): A statement from a lender that it would be prepared in principle to lend a stated amount, given after basic checks of the buyer’s income and credit record. It is not a formal mortgage offer, but sellers and agents often ask to see one before accepting an offer. It is also called a mortgage in principle or a decision in principle.
• AML (anti-money laundering) checks: Identity and source of funds checks that estate agents, conveyancers and mortgage lenders must carry out under the Money Laundering Regulations 2017. Estate agents must check both the seller and the buyer in a sale. Every estate agency business must be registered with HM Revenue and Customs for anti-money laundering supervision.
• Asking price: The price at which a seller markets a home. It is usually set after valuations from estate agents and a comparison with recent sale prices in the area. Buyers may offer less than the asking price or more where demand is strong.
• Auction: A method of sale in which buyers bid against one another, either in a room or online, above a reserve price set by the seller. At a traditional auction the winning bidder is legally committed when the hammer falls and must complete within the period set in the auction conditions. Under the modern method of auction the buyer usually pays a reservation fee and has longer to complete.
• Best and final offers: A request from the estate agent, when several buyers are interested, for each to submit their highest offer by a set deadline. The seller need not accept the highest offer and may weigh each buyer’s position, such as whether they have a property to sell.
• Cash buyer: A buyer who can pay for a property without a mortgage and without first selling another home. Sellers often favour cash buyers because fewer steps could delay or stop the sale.
• Chain: The linked series of sales and purchases that depend on one another, for example where a buyer must sell their own home before buying yours. A delay or withdrawal at any point can hold up or end every transaction in the chain.
• Closing date: A deadline set by the seller’s agent when more than one buyer is interested, by which all offers must be submitted. It is most common in Scotland, where offers are submitted in writing by the buyers’ solicitors. The seller then chooses which offer to accept and need not take the highest.
• Commonhold: A form of ownership in England and Wales in which each owner holds the freehold of their own flat and is a member of a commonhold association that owns and manages the shared parts of the building. There is no landlord and no lease. It was created by the Commonhold and Leasehold Reform Act 2002 but few commonhold buildings exist.
• Completion: The day the buyer’s money reaches the seller’s conveyancer, the sale is finalised and the keys are released to the buyer. In England and Wales the completion date is normally fixed at exchange of contracts. In Scotland the equivalent is the date of entry.
• Conveyancer: A legal professional who handles the legal work of buying or selling a property. In England and Wales this may be a solicitor or a licensed conveyancer regulated by the Council for Licensed Conveyancers. In Scotland and Northern Ireland the work is normally done by solicitors.
• Conveyancing: The legal process of transferring ownership of a property from seller to buyer, from the draft contract and searches through to completion and registration of the new owner. Which? puts the average cost of conveyancing at £2,182 (January 2026, citing Reallymoving).
• Date of entry: In Scotland, the date on which the buyer pays the price and takes ownership and the keys. It is agreed in the missives and is the Scottish equivalent of completion.
• Deposit: The part of the purchase price a buyer pays from their own money rather than borrowing. In England and Wales it also means the sum paid at exchange of contracts, commonly 10% of the price, which the buyer can lose if they then fail to complete. A larger deposit usually gives access to lower mortgage interest rates.
• Energy Performance Certificate (EPC): A certificate rating a home’s energy efficiency from A (most efficient) to G (least efficient), with recommendations for improvement. A seller must order one before the home is marketed and it is valid for 10 years. In Scotland the energy report in the Home Report serves as the EPC.
• Estate agent: A business that markets a property and negotiates its sale on behalf of the seller. Estate agents must follow the Estate Agents Act 1979, belong to an approved redress scheme and register with HM Revenue and Customs for anti-money laundering supervision.
• Estate agent fee: The fee a seller pays an estate agent for marketing and selling the home, as set out in the agency agreement. Traditional agents usually charge a percentage of the sale price on completion, averaging about 1.3% including VAT (Which?, citing Rightmove data for 2025), while online agents typically charge fixed fees of £500 to £1,500. Agents’ fees are normally subject to VAT.
• Estate Agents Act 1979: The main UK law regulating estate agents. It requires agents to give clients written details of their fees and contract terms before they are instructed, to disclose any personal interest in a sale and to protect clients’ money. It also allows National Trading Standards to ban unfit people from estate agency work.
• Exchange of contracts: In England and Wales, the point at which the buyer and seller swap signed contracts through their conveyancers and the sale becomes legally binding. The buyer usually pays the deposit at exchange and the completion date is fixed. In Scotland the binding stage is the conclusion of missives.
• Exclusivity agreement: An agreement in which the seller promises not to deal with other buyers for a set period while the buyer arranges a survey, mortgage and legal work. It is also called a lock-out agreement and can reduce the risk of gazumping.
• Feedback: Comments from buyers after a viewing, passed on by the estate agent, on what they liked or disliked about the home. Sellers can use it to review the asking price and the way the home is presented.
• First-time buyer relief: A reduction in property purchase tax for buyers who have never owned a home anywhere in the world. In England and Northern Ireland no Stamp Duty Land Tax is due on the first £300,000 of a price up to £500,000, with 5% on the portion from £300,001 to £500,000. In Scotland the relief raises the LBTT nil-rate band from £145,000 to £175,000, while Wales has no first-time buyer relief.
• Fixtures and fittings form (TA10): A standard form used in England and Wales under the Law Society Conveyancing Protocol, on which the seller lists the items included in the sale, those excluded and those offered at an extra price. It prevents disputes over what stays with the property.
• Freehold: Ownership of a building and the land it stands on, with no time limit. Most houses in England and Wales are sold freehold. Scotland does not use the term for homes, which are owned outright.
• Gazumping: When a seller who has accepted an offer then accepts a higher offer from another buyer before the sale becomes binding. It is lawful in England and Wales because an accepted offer is not binding until exchange of contracts. It can also happen in Scotland before missives are concluded.
• Gazundering: When a buyer lowers their offer shortly before exchange of contracts, knowing that the seller may be reluctant to lose the sale. Like gazumping, it is lawful until the sale becomes binding.
• Ground rent: A yearly payment that a leaseholder may have to make to the freeholder under the lease. For most new residential long leases in England and Wales granted on or after 30 June 2022, ground rent is limited to a peppercorn, which in practice means nothing is payable. Older leases may still carry ground rent, so buyers should check the amount and any terms for increasing it.
• Guide price: An indication of the price the seller expects, often used for auctions and higher-value homes. It gives buyers an idea of the level of offers expected rather than a fixed price.
• Higher rates for additional dwellings: Extra Stamp Duty Land Tax of 5% on top of the standard rates, paid in England and Northern Ireland by buyers who will own more than one residential property after the purchase. It does not usually apply where the buyer is replacing their main home. Wales charges higher rates of Land Transaction Tax and Scotland charges the Additional Dwelling Supplement.
• Home Report: In Scotland, a pack of three documents that the seller must provide to prospective buyers: a single survey with a valuation, a property questionnaire and an energy report. A seller or selling agent must give a buyer the Home Report within nine days of being asked. Some homes are exempt, such as new homes sold to the first occupier, but they still need an EPC.
• Land and Buildings Transaction Tax (LBTT): The tax paid by buyers of property in Scotland in place of stamp duty, collected by Revenue Scotland. On a residential purchase no tax is due on the first £145,000, with rates rising from 2% to 12% on higher portions of the price. First-time buyers pay no tax on the first £175,000.
• Land Registry: HM Land Registry keeps the register of land ownership in England and Wales. After completion the buyer’s conveyancer applies to register the transfer so that the buyer is recorded as owner. In Scotland the register is kept by Registers of Scotland and in Northern Ireland by Land & Property Services.
• Land Transaction Tax (LTT): The tax paid by buyers of property in Wales in place of stamp duty, collected by the Welsh Revenue Authority. At the main residential rates no tax is due on the first £225,000, with rates from 6% to 12% on higher portions of the price. There is no first-time buyer relief in Wales.
• Leasehold: Ownership of a property, usually a flat, for a fixed number of years under a lease from the freeholder, who owns the building and the land. Leaseholders often pay ground rent and a service charge and must keep to the terms of the lease. Residential leasehold is rare in Scotland, where most homes are owned outright.
• Leasehold information pack: Information supplied by the freeholder or managing agent when a leasehold property is sold, covering matters such as service charges, ground rent, planned major works and building insurance. It is often requested on the Law Society form LPE1 and the seller usually pays for it.
• Local search: A search made with the local council that reveals matters affecting the property, such as planning decisions, building control records, road schemes and local land charges. It is one of the standard searches a buyer’s conveyancer orders.
• Material information: Information a buyer needs to make an informed decision about a property, which estate agents must include in property listings under consumer protection law. National Trading Standards guidance lists items such as price, tenure and council tax band, together with matters such as building safety or flood risk where they apply.
• Memorandum of sale: A document prepared by the estate agent once an offer is accepted, setting out the agreed price, the details of the buyer and seller, their conveyancers and any special conditions. It is sent to all parties so that the legal work can begin. It is not a binding contract.
• Missives: In Scotland, the formal letters exchanged between the buyer’s and seller’s solicitors that together form the contract of sale. Once missives are concluded the sale is legally binding. A party who withdraws after that point can be liable to pay damages.
• Mortgage: A loan secured on a property, used to buy it and repaid with interest over an agreed term. The lender can take possession of the property if the repayments are not made.
• Mortgage in principle: Another name for an agreement in principle: a lender’s indication of how much it may lend, based on initial checks. It is not a guarantee that a mortgage will be offered.
• Mortgage offer: The lender’s formal written confirmation that it will lend a stated sum on a particular property, issued after its valuation and checks of the buyer’s finances. An offer is valid for a limited period, so buyers should check its expiry date.
• Mortgage valuation: An inspection carried out for the lender to confirm that the property is worth enough to secure the loan. It is for the lender’s benefit and is not a survey of the property’s condition.
• Multi-agency: An agreement in which a seller instructs more than one estate agent at the same time and pays a fee only to the agent who introduces the buyer. The fee percentage is often higher than for sole agency.
• No onward chain: A description of a sale in which the seller is not buying another home that depends on it, for example because the property is empty or is being sold by executors. It can make a sale quicker and less likely to fall through.
• Offer: The price a buyer proposes to pay for a property, usually made through the seller’s estate agent. In England and Wales an accepted offer is not legally binding until contracts are exchanged. In Scotland a formal offer is made in writing by the buyer’s solicitor.
• Offers over: A pricing method in which the seller invites offers above a stated figure. It is common in Scotland, where homes with strong interest are often sold at a closing date.
• Probate: The legal authority granted to the executors of someone who has died to deal with their estate, including selling their home. A probate property can be marketed before the grant is issued, but contracts cannot normally be exchanged until it has been obtained. In Scotland the equivalent is confirmation.
• The Property Ombudsman: One of the two government-approved redress schemes for estate agents. It considers complaints that an agent has not resolved through its own complaints procedure and can require the agent to apologise or pay compensation.
• Property portal: A website that lists homes for sale from many estate agents, such as Rightmove, Zoopla and OnTheMarket. Estate agents pay to list their properties on the portals.
• Property Redress Scheme: One of the two government-approved redress schemes that estate agents can join. It considers complaints that a member agent has not resolved and can require the agent to pay compensation.
• Purchaser: The person buying a property, also called the buyer.
• Ready, willing and able purchaser: A buyer who is prepared and able to exchange unconditional contracts. Under a ready, willing and able purchaser clause the seller must pay the agent’s fee once the agent introduces such a buyer, even if the seller then decides not to sell. Agents must explain the term in the wording set by the Estate Agents (Provision of Information) Regulations 1991.
• Redress scheme: An independent complaints service that every estate agent must belong to by law. If an agent does not resolve a complaint, the seller or buyer can refer it to the agent’s redress scheme free of charge. The two approved schemes are The Property Ombudsman and the Property Redress Scheme.
• RICS Home Survey Level 1: The most basic survey under the Royal Institution of Chartered Surveyors Home Survey Standard, previously known as a condition report. It gives a traffic-light rating of the condition of each part of the property without advice on repairs and suits newer homes in good condition.
• RICS Home Survey Level 2: A mid-level survey, formerly known as the HomeBuyer Report, which identifies visible defects and gives advice on repairs and maintenance. It can include a valuation and suits conventional homes in reasonable condition.
• RICS Home Survey Level 3: The most detailed survey, formerly known as a building survey, suited to older, larger, altered or unusual properties. It describes the construction and any defects in depth and sets out options for repair.
• Sale agreed: The stage at which the seller has accepted a buyer’s offer. The sale is not legally binding at this stage. In Northern Ireland ‘sale agreed’ is the usual label on property listings.
• Sales progression: The work done after an offer is accepted to move the sale through to completion, such as following up searches, surveys, mortgage offers and enquiries with the conveyancers and others in the chain. It is usually carried out by the estate agent.
• Sealed bids: A method of sale in which each interested buyer submits a confidential written offer by a deadline without knowing the other offers. The seller then chooses which offer to accept and need not take the highest.
• Searches: Enquiries a buyer’s conveyancer makes with the local council, the water company and other bodies about matters affecting the property. Standard searches include the local search, the drainage and water search and an environmental search covering risks such as flooding. Mortgage lenders usually require them.
• Service charge: A charge leaseholders pay to the freeholder or managing agent towards the cost of maintaining, insuring and managing the building and shared areas. It can change from year to year. Major works can lead to large additional bills.
• Share of freehold: An arrangement in which flat owners each hold a lease of their own flat and also jointly own the freehold of the building, usually through a company. The owners control the management of the building and can grant themselves longer leases.
• Sold subject to contract (SSTC): A label shown on a property listing once the seller has accepted an offer. The sale is not legally binding until contracts are exchanged and may still fall through. The legal process from this point often takes several months.
• Sole agency: An agreement in which the seller instructs one estate agent for a set period. The seller pays the fee if contracts are exchanged with a buyer introduced during that period by the agent or by any other agent. No fee is due if the seller finds a buyer privately.
• Sole selling rights: A stricter form of sole agency under which the agent’s fee is payable if contracts are exchanged with any buyer during the agreed period, including one the seller finds privately. Sellers should read the agreement carefully before signing.
• Solicitor: A qualified lawyer who can advise on a wide range of legal matters. Many solicitors carry out conveyancing. In Scotland and Northern Ireland conveyancing is done almost entirely by solicitors.
• Stamp Duty Land Tax (stamp duty): The tax paid by buyers of property in England and Northern Ireland, collected by HM Revenue and Customs. For a single home bought by someone who is not a first-time buyer, the rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million, each charged on the part of the price within the band. Scotland charges LBTT and Wales charges LTT instead.
• Survey: An inspection of a property’s condition by a surveyor, commissioned by the buyer to find defects before committing to the purchase. It is separate from the lender’s mortgage valuation. In England and Wales RICS surveys are offered at three levels, while in Scotland the seller provides a single survey as part of the Home Report.
• Surveyor: A professional trained to inspect and value property. Chartered surveyors are members of the Royal Institution of Chartered Surveyors (RICS).
• TA6 Property Information Form: The standard questionnaire used in England and Wales under the Law Society Conveyancing Protocol, on which the seller answers questions about the property such as boundaries, disputes, alterations, guarantees, flooding and services. The seller must answer accurately because false or misleading answers can lead to a claim by the buyer.
• Tie-in period: The minimum period a seller agrees to stay with an estate agent under a sole agency agreement. Instructing another agent during this period can leave the seller liable for two fees. Sellers should check the tie-in period and the notice needed to end the agreement before signing.
• Title deeds: The documents that prove who owns a property and set out the rights and obligations attached to it. Most properties in England and Wales are now registered, so ownership is shown on the register kept by HM Land Registry rather than in paper deeds.
• Transfer deed (TR1): The legal document, signed by the seller, that transfers ownership of a registered property in England and Wales to the buyer. It is sent to HM Land Registry after completion so that the buyer can be registered as owner.
• Under offer: A label meaning the seller has accepted an offer but contracts have not yet been exchanged. Some agents continue to show the home to other buyers at this stage.
• Valuation: An estate agent’s assessment of the price a home is likely to achieve, usually given free when the agent visits, together with advice on the asking price and marketing. It differs from a surveyor’s formal valuation for a lender.
• VAT: Value Added Tax, charged at the standard rate of 20% on most estate agents’ and conveyancers’ fees. Sellers should check whether a quoted fee includes VAT.
• Vendor: The person selling a property, also called the seller.
• Viewing: An appointment for a prospective buyer to look around a property, usually arranged and often accompanied by the estate agent.
• Virtual viewing: A tour of a property by live video call or recorded video, which lets buyers see a home remotely before deciding whether to visit in person.