Useful Terms

Advance: The amount you are borrowing.

APR: Annual Percentage Rate. An APR is an interest rate calculation designed to reflect the total cost of credit over the whole term of the mortgage.

Caveat Emptor: “Let the buyer beware”.

Collateral: Title Deeds of your new property given as security against the repayment of the mortgage.

Closing Date: The date arranged for the final legal transfer of the property where the remaining balance is paid to the seller, the buyer receives the keys of the property and all legal formalities are completed.

Contract of Sale: The written binding legal agreement between the seller, known as the vendor, and the buyer, known as the purchaser, with regard to the property.

Conveyance: The transfer of ownership of property; the instrument effecting the transfer.

Conveyancing: The legal work done by the solicitors for the vendor and purchaser.

Deeds: Legal documents which confirm the owner’s legal entitlement to the property.

Deposit: This is normally paid in two parts. A booking deposit
to the estate agent which is refundable and a contract deposit, both usually making up a total of 10% of the contract price.

Exchange of Contracts: when both the purchaser and the vendor sign the contract and the deposit has been paid.

Freehold: the largest estate or interest in land where ownership is absolute and no rent is payable.

Ground Rent: Nominal annual rent, if demanded, paid on a leasehold title.

Indemnity Bond: An insurance bond taken out by the lender as additional security, depending on the size of the loan.

Land Registry: A Government department that holds ownership records of land and property within the state. The Registry of Deeds is a similar Government Body where unregistered properties are registered.

Leasehold: The interest created by a lease.

Lessee: The person to whom a lease is granted.

Lessor: The person who grants a lease.

Mortgage: A loan against the security of a property.

Mortgagee: The financial instruction who lends the money secured by mortgage.

Mortgagor: The person who borrows money and whose Property secures the loan.

Mortgage Protection: Life Assurance cover.

Principal: The amount of the mortgage on which interest is calculated.

Redemption: Repayment of the mortgage in full.

Search: A legal investigation to establish what mortgages or judgements attach to the property being bought and/or vendor and purchaser.

Spouse: husband or wife.

Stamp Duty: A Government tax. Revenue raised by means of stamps affixed to written instruments e.g. Deed of Transfer

Transfer: A deed which transfers ownership of a property.

Private Treaty Contract: A contract that is negotiated between parties and not at an auction.