ESPC Jargon Busters
Additional Dwelling Supplement (ADS)
This is a tax that is payable for any second residential home and is not restricted to properties in Scotland or the United Kingdom.
From the 5th of December 2024 the additional tax is 8% of the purchase price.
You can check how much tax you must pay using our ADS calculator
Agreement in Principle
This is a provisional offer of a mortgage from a bank (lender) should you meet their requirements.
Mortgage in principles are usually valid for 30 days by most lenders. After the time expires, you will have to apply for a new mortgage in principle.
Click here for more information on "Agreement in Principle"
Base Rate
Is the interest rate set by The Bank of England. It determines the cost of borrowing money from lenders and banks for loans, bank accounts and mortgages.
Building Survey
A building survey is a report prepared on the condition of a property for sale. It can also be known as a structural survey. There are different levels of survey available depending on your budget, the condition or age of the property you're hoping to buy, or how much information you'd like to know about the property before committing to a formal offer.
Click here for more information on "Building Surveys"
Chains
A chain is the term used to describe the group of buyers and sellers linked by their property sales - each person is linked to the next by the property they are either buying or selling. The chain usually begins with a first-time buyer or someone who does not have a property to sell and ends with a person who is only selling their property, not purchasing another. Everybody in between these parties is reliant on those above and below them in the chain to ensure all transactions proceed smoothly.
Click here for more information on "Chains"
Closing Date
In Scotland, a closing date is the set time and date given for all interested parties to submit their best and final offer on a property they'd like to purchase. All bids are 'sealed bids' - which is to say, if you are bidding at a closing date, you will not know how many other bidders there are or what their offers look like.
The selling agent will unseal the bids after the set time has passed on the closing date, and share these with the seller, who will then choose their preferred offer.
A seller will often choose the highest offer, but this is not always the case - so it is always worth making your bid as attractive as possible, by highlighting your status as a buyer and being prepared to be flexible or to move quickly.
Click here for more information on "Closing dates"
Cohabitation Agreement
A legal document between two people who are living together in a romantic relationship. The document divides and protects individual assets should the relationship break down.
Conveyancing
The legal element of a property purchase or sale is known as conveyancing. It is basically how the contract is created which transfers the ownership of a property from one person to another. This is done by a series of letters being exchanged, commonly known as missives. When the missives are concluded, the transaction becomes legally binding on both the seller and the purchaser. After missives have been concluded, the seller is legally bound to transfer ownership to the buyer – if they pull out, the buyer can claim damages. Likewise, if for any reason, the purchaser cannot complete the transaction, they are liable for damages to the seller.
Click here for more information on "Conveyancing"
Date of Entry
The Date of Entry is the date on which the buyer of the property pays the purchase price to the seller and the seller gives the keys and legal ownership of the property to the buyer. It is sometimes also referred to as the ‘settlement date’, ‘date of settlement’, ‘completion date’ or ‘date of completion’. The Date of Entry is a key negotiating point when selling or buying a property as it is the date by which the seller has to move out.
Click here for more information on "Date of entry"
Deeds
‘Deeds’ or ‘title deeds’ are the terms used to describe a series of documents which prove the ownership of a property and the history of its ownership. They will include documents which cover mortgages, lease information, contracts as well as any wills or conveyancing.
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Deposits
A deposit is the amount of money you pay upfront towards the full cost of a property while your mortgage covers the rest. The bigger your deposit, the smaller your loan and the lower the monthly payments. Plus, as the deposit size increases, the interest rates available tend to come down as it is less risky for mortgage lenders.
Click here for more information on "Deposits"
Detached
This is an independent property that is not attached to other properties.
Duplex
A duplex is a flat that is spread across two floors within the same unit, connected by an internal staircase.
End of terrace
This is a property attached to only one other property within a row of attached houses.
Energy Performance Certificate
An Energy Performance Certificate (EPC) gives information on how energy efficient a building is and how it could be improved.
These requirements are closely linked with national efforts to reach net zero and the Scottish Government’s Energy Efficiency Standard for Social Housing legislation is expected to make them increasingly important when selling.
Click here for more information on "Energy Performance Certificates"
Factoring fees
A monthly or yearly expense for the maintenance and/or development of the common areas and exterior of a building.
Click here for more information on "Factoring fees"
Fixed Price
The amount of money the seller has stated they will accept for their property. Fixed price properties are usually non-negotiable and not open to any offers.
Click here to find out why you should consider buying a fixed price property
Fixed rate mortgage
A type of mortgage deal where you will pay the bank a specific amount each month for a fixed amount of time until the mortgage deal expires.
When the mortgage deal expires you have the option to sign up for another fixed deal or leave it and pay a variable rate each month.
Click here for more information on "Fixed rate mortgages"
Home Report
An official document produced by a surveyor who will come out and inspect your property before it goes on sale. It will cover the Surveyor’s inspections and recommendations as well as the property’s valuation.
If you sell your property in Scotland, the seller must pay for a home report whereas in England the buyer must pay for the home report.