| Adults with Incapacity Act |
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Adults with Incapacity (Scotland) Act 2000/section2/02006002.php |
| Closing Date |
Payments for a loan or debt that are overdue. |
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| Conclusion of missives |
Once the initial offer to buy a property is made there follows an exchange of
letters between the selling and buying solicitor thrashing out the finer points of
the bargain until there is complete agreement over the terms of the sale. This is when
missives are concluded and a binding bargain has been reached and where there could be
penalties if a client changes their minds (or resiles) from the bargain.
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| Conveyancing |
This is the process whereby ownership or title of a piece of land or property is
transferred from one party to another. A solicitor is required to do this and he or she
will examine the title deeds and ensure that they do not contain any defects or unduly
onerous conditions (burdens). |
| Equity |
is the difference between the value of a person's house and the value of any debts
that are secured in the house |
| Factors |
Where a client lives in a flat or where they share common facilities a factor
may be employed to arrange for common repairs, gardening, stair cleaning etc.
Clients pay a proportionate share of the costs to the factor on a regular basis. |
| Fixed price |
sometimes sellers are happy to accept the first offer of a set amount. This can be
for various reasons including a need for a quick sale or sluggish market for the type
of property being sold. The advantage to the buyer is that they don't have to go
through the getting a survey and putting an offer in for the house stage, only to be
pipped at the post by someone else! |
| ISMI |
Income Support Mortgage Interest is a benefit to assist with housing costs for
people receiving Income Support or Income-based Job Seekers Allowance. |
| Irrevocable mandates |
If a client needs money for a fairly short period of time or only a small amount
is needed, then this money can be secured by way of an irrevocable mandate. When a
client signs this they give their solicitor the right and the duty to pay over this
amount. This can be a useful way of organising low cost bridging finance e.g.
if clients have friends, family or an organisation that can lend money in this way.
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| Land Register |
The client's solicitor has to record the purchase and standard security (loan
agreement) in the appropriate land registers. Registers of Scotland Executive Agency
is responsible for maintaining Scotland's two national property registers - the Land
Register and Register of Sasines.
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| Minute Of Agreement |
Where Communities Scotland, a local authority or another organisation provides a
grant to help with the purchase of a property clients will be expected to enter into
an arrangement with this party. A legal agreement known as a minute of agreement will
lay out the terms and responsibilities that the parties agree to.
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| Mortgage |
is simply a loan clients take out to buy a house. Very basically there are only
two different types of mortgage - repayment and interest only.
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| Noting Interest |
if a client has viewed a property and they are really interested in it, they should
ask their solicitor to note their interest with the selling solicitor.
This should mean that the property will not be sold without the client being given a
chance to put in an offer to buy the property, along with everyone else who has noted
an interest.
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| Offer of advance |
when a lender is happy with the valuation of a property it will issue an "offer of
advance". This means that, provided any other money needed to purchase a property is or
will be in place, an offer can be made on a property.
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| Offers over |
most sellers ask for "offers over" a certain amount, particularly when they know
there will be a lot of interest in the property. If they have lots of "noted interests"
they are likely to set a "closing date" by which offers need to be made through a
solicitor.
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| Ranking Agreements |
There may be more than one loan or grant which needs to be secured in the property
e.g. a grant from a Council and/or Communities Scotland. A Ranking Agreement is used to
ensure that all securities rank in the order agreeable to all lenders so that if there are any
claims on the property they will be dealt with in the agreed order. Mortgage lenders will always
expect to have first ranking security.
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| Service charges |
Where clients share parts of a building in common with other owners and a factor
is employed to arrange for repairs etc. they pay a service charge to the factor for
their share of any work that is done or service that is provided.
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| Shared ownership |
Some, though not all, Housing Associations have built properties for shared ownership.
Clients can purchase a 25%, 50% or 75% share in the property. The remaining portion
remains in housing association ownership and clients sign an occupancy agreement and pay
a rent to the association to cover this. Any time after the first year of being a sharing
owner clients can buy the remaining share in total or in 25% chunks (but only one chunk per
year) if they are able to do so, at a valuation prevailing at that time (as opposed to
valuation when clients bought the share).
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| Standard Security |
is a legal agreement between a lender and borrower giving the security of a property over
to the lender. If the borrower defaults on their mortgage the lender can take action to
repossess the house.
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| Survey |
A Homebuyers (scheme 2) Survey provides a valuation but also a more in depth survey of the
condition of a property, particularly for older properties. They can cost between £150 - £300.
A structural (scheme 3) survey is more detailed yet and is advisable in areas that might have experienced
subsidence, mining, flooding etc. in the recent past or properties which show signs of cracking,
dampness etc. This can cost £500 or more.
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| Title deeds |
This is the document that confirms a clients ownership of land or property.
If a client needs to take out a mortgage it will be taken by their lender in exchange
for the loan borrowed, until such time as the loan is paid off (redeemed).
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| Valuation |
A valuation is a basic inspection of a property to help a client and the lender
decide whether the property is structurally sound and how much it is valued at.
It will need to be done by a surveyor acceptable to the client's lender and can cost
up to £150 approximately. Since it is not a detailed inspection clients may want to
instruct a survey, which will be more expensive.
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