If you’re hoping to sell your house fast in the North East, UK, there are some property terms you should become familiar with. Below, we’ve compiled some of the lesser-known terms you might hear when selling your house in the North East, UK. Please feel free to reach out to us if there’s anything else you would like to know about the selling process. We’re happy to answer all of your questions. 0191 369 2088
Full Valuation
A full valuation is an evaluation of a property’s value by a professional surveyor. This can be done during the mortgage origination process or by the buyer or seller privately to help determine the value of the property.
Assessed Value
The assessed value of a property helps determine how much a homeowner will need to pay in property taxes. The property appraiser will take into account location information, inspection information for the home, and recent home sales in the area.
Running Costs
The running costs are the costs you face each month to own the home. This includes things like your insurance premiums, utility bills, and maintenance costs.
Clear Title
A clear title means that there aren’t any other ownership claims to the property, nor are there any charges against the house.
Comparative Market Analysis
A comparative market analysis, or CMA, provides information to help determine the value of the property. It takes into account recent sales to help you figure out what your house is currently worth.
Contingencies
A contingency is a stipulation in the contract that needs to be met before the contract is legal and binding.
Covenant
A covenant formal agreement in which one party gives the other certain assurances. An example would be covenants of warranty in a warranty deed.
Delinquency
A delinquency occurs when a homeowner defaults on their mortgage. This is when a lender will actively begin the collections process, even initiating foreclosure.
Disclosures
A disclosure is a document that the seller provides the buyer, letting them know about any problems, defects, or known issues with the property. Failing to disclose a problem with your home can be considered fraud.
Encumbrance
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance.
Reposession
A repossession occurs when a homeowner fails to make their mortgage payment, typically for 90 days. The owner waives all rights to the property and the home becomes the possession of the bank.
Inclusions
Inclusions are personal property that is included in the home sale. This can be things like appliances, furniture, or outdoor items.
Market Value
Market value is a valuation of the property in which the parties are free of pressure to complete the transaction and all details of the house are known. It can be formulated by finding the average between the highest price a buyer would pay and the lowest price a seller would accept.
Mechanic’s Lien
A mechanic’s lien is a lien against the property which will secure the payment of contractors, laborers, and those who provide materials.
Negative Amortization
While amortisation refers to paying off your loan, negative amortization happens when the payments you are making aren’t enough to cover the interest and the amount you owe becomes greater as opposed to less.
Negative Equity
Is where the value of the mortgage is higher than the market value of the property.
Quitclaim Deed
A quitclaim deed transfers the interest in a property from one person to another.
Sale-Leaseback
A sale-leaseback occurs when a buyer purchases a property and then leases it back to the occupant.
Title
The title refers to who has legal ownership and who can legally use the property. Just like a car, it is how you claim ownership of the property.
Title Defect
A title defect is when there is an adverse claim, somewhere in the chain of ownership. It can have an impact on who has legal rights to the property.
Waiver
Voluntarily giving up a right, claim or privilege. It removes liability for the other party in the agreement.
When trying to sell your house fast in the North East, UK, you will likely hear a lot of property jargon thrown your way. It’s important to know what is being said and how the terms used will impact you. Do your homework before selling your house fast in the North East, UK so you don’t miss something you should have been aware of.