A–Z Property Glossary

Property
Jargon Buster

Q: What does Sold STC mean?

Sold Subject to Contract (STC or SSTC) means the seller has accepted an offer but contracts have not yet been exchanged. The sale is not legally binding and either party can still pull out.

Q: What is exchange of contracts?

Exchange of contracts is the point at which both buyer and seller sign and exchange their copies of the contract, making the sale legally binding. A deposit (usually 10%) is paid at this stage.

Q: What is an Agreement in Principle?

An Agreement in Principle (AIP) is a conditional confirmation from a lender that they would be willing to lend you a certain amount, subject to full assessment. It shows sellers you are a serious buyer.

Estate agents and solicitors have a language all of their own. Our plain-English glossary explains every term you'll encounter when buying, selling or renting a property.

A C D E F G L M O P S T V

Agreement in Principle (AIP)

A conditional confirmation from a lender that they would be willing to lend you a certain amount, subject to full assessment. Also called a Decision in Principle (DIP) or Mortgage in Principle.

Asking Price

The price a seller is advertising their property for. This is not necessarily the final sale price — negotiation is normal.

Chain

A sequence of linked property transactions where each sale depends on another completing. A "chain-free" sale (e.g. a first-time buyer purchasing from someone moving into rented) completes faster.

Completion

The final stage of a property transaction when legal ownership transfers to the buyer, funds are released and keys are handed over.

Conveyancing

The legal process of transferring property ownership from seller to buyer. Handled by a solicitor or licensed conveyancer.

Deposit

The upfront cash payment a buyer makes towards the purchase. Typically 5–20% of the purchase price for residential properties.

Disbursements

Additional costs charged by your solicitor on behalf of third parties — such as search fees, Land Registry fees and stamp duty.

Energy Performance Certificate (EPC)

A legally required certificate rating a property's energy efficiency on a scale of A (most efficient) to G (least efficient). Required when selling or letting any residential property.

Equity

The difference between the current market value of your property and the outstanding mortgage balance. Your equity increases as your mortgage is paid down and/or property values rise.

Exchange of Contracts

The point at which both buyer and seller sign and exchange their copies of the contract, making the sale legally binding. A deposit (usually 10%) is paid at this stage.

Fixed Rate Mortgage

A mortgage where the interest rate is fixed for a set period (typically 2, 3 or 5 years), giving certainty over monthly repayments regardless of Bank of England base rate changes.

Freehold

Outright ownership of both the property and the land it sits on. Most houses are freehold. Contrast with leasehold.

Gazumping

When a seller accepts a higher offer from a different buyer after having already accepted an offer. Legally permitted in England before exchange of contracts.

Gazundering

When a buyer reduces their offer just before exchange of contracts, knowing the seller has little time to find a new buyer.

Ground Rent

An annual charge paid by a leaseholder to the freeholder. Ground rents on new leases must now be zero (peppercorn) by law.

Land Registry

The government body that registers ownership of land and property in England and Wales. All property sales must be registered.

Leasehold

Ownership of a property for a fixed number of years (the lease term) but not the land it stands on. Common for flats. The freeholder owns the building and land.

Loan to Value (LTV)

The ratio of your mortgage to the property value, expressed as a percentage. A £180,000 mortgage on a £200,000 property = 90% LTV. Lower LTV = better rates.

Mortgage in Principle

See Agreement in Principle. A written estimate from a lender of how much they might be willing to lend you. Useful when making an offer as it shows you are a serious buyer.

Offer

A formal proposal from a buyer to purchase a property at a stated price. Until exchange of contracts, neither party is legally bound.

Property Particulars

The marketing description and details produced by the estate agent for a property, including photos, floorplan, description and asking price.

Searches

Enquiries made by your solicitor to local authorities and other bodies to check for issues that may affect the property — including planning restrictions, flood risk, drainage and environmental matters.

Sold Subject to Contract (STC / SSTC)

When a seller has accepted an offer but contracts have not yet been exchanged. The sale is not legally binding at this stage.

Stamp Duty Land Tax (SDLT)

A government tax paid by buyers on property purchases above £250,000 (or £0 for first-time buyers up to £425,000). Also known as Stamp Duty.

Survey

An inspection of a property's condition carried out by a qualified surveyor. Common types include the RICS Home Survey Level 2 (HomeBuyer Report) and the more detailed Level 3 (Building Survey).

Tenancy Agreement

The legal contract between a landlord and tenant setting out the terms of the rental, including rent, deposit, notice periods and responsibilities.

Title Deeds

The legal documents that prove ownership of a property. Most are now stored electronically at the Land Registry rather than as physical documents.

Valuation

An assessment of a property's market value. Estate agent valuations are free and market-led; mortgage lender valuations confirm the property is worth the loan amount.

Variable Rate Mortgage

A mortgage where the interest rate can change, usually tracking the Bank of England base rate. Offers flexibility but less payment certainty than a fixed rate.