Home Buying Language
Agents / Auctioneers
Agents / Auctioneers arrange the sale of the property. They advise on price,
negotiate between sellers and buyers and coordinate the marketing of a
property. They usually offer other optional services such as arranging
mortgages, surveys and conveyancing. You are under no obligation to use
these services, either as a buyer or a seller.
APR
Annual Percentage Rate – the true cost of a loan.
Bridging Loan
A temporary loan to tie you over when having to buy your new home before
selling your current property.
Broker
An intermediary who will give advice and offer a range of mortgages.
Buildings Insurance
Insurance to cover any structural damage to your property.
Block Policy Insurance
Multiple Units will have a Block Policy and in this regard details of your lender
will be required so as to facilitate drawdown.
Capital
The sum borrowed in a mortgage.
Chain
This occurs when the seller needs the sale of their property to occur before
they can complete the purchase of another property. The same situation may
exist for others in the chain. As a result, the whole chain can collapse if one
link breaks.
Home purchasing and selling is full of phrases
and terminology that is unfamiliar to all but the
seasoned house buyer. That’s why we’ve provided you with a mortgage
and moving glossary to guide you through some
of the language you are likely to encounter
when moving home.
Glossary of Terms
Completion
The point when contracts have been exchanged and ownership legally
passes to the buyer.
Contents Insurance
Insurance to cover any loss or damage to your possessions.
Contracts
The legal documents needed to transfer the ownership of property.
Conveyancing
Legal work involved in buying and selling a property.
Deposit
Part of the purchase price paid when contracts are exchanged.
Disbursements
Expenses paid by the solicitor on behalf of the purchaser.
Discounted Rate
A reduced mortgage interest rate which is subtracted from the standard
variable rate.
Endowment Mortgage
Type of Mortgage where monthly payments are made into an endowment –
or life assurance policy. The loan is paid off in one lump sum at the end of
the loan period.
Energy Efficiency
Almost all buildings that are either newly constructed or otherwise placed on
the market for sale or rental will have to have on energy efficiency certificate.
The main exemption applies to listed buildings of outstanding architectural or
historical importance. The certificate will most likely be similar to the energy
label for domestic electrical appliances, which rates the energy performance
of the appliance from A to G, and which expresses energy consumption (in
kWh) under standard conditions of use.
Estate Agents
Estate Agents arrange the sale of the property. They advise on price,
negotiate between sellers and buyers and coordinate the marketing of a
property. They usually offer other optional services such as arranging
mortgages, surveys and conveyancing. You are under no obligation to use
these services, either as a buyer or a seller.
Excess
The Initial sum you have to pay on an insurance claim.
Exchange of contracts
The point at which buyer and seller are legally bound to the sale and
purchase of the property.
Freehold
Absolute ownership of property and land.
Floor Area Certificate
These are issued from the Department for the environment and inspections
can take some time. Without the floor area certificate being in place the
purchaser's solicitor cannot validly stamp the purchase deed therefore the
Law Society have issued guidelines confirming that no sale can complete
without the floor area certificate being in place. If the property does not
qualify for a floor area certificate then a certificate from a suitably qualified
engineer/architect is required to confirm that the property is in excess of the
floor area limits.
Homebond
Homebond is a body which ensures houses are built to stringent standards.
Homebond inspectors carry out spot checks and regular examinations on all
houses at varying stages of construction.
Your new McInerney Home is automatically covered by the Homebond ten
year warranty and insurance cover provided by Homebond. You will receive a
Homebond booklet from your solicitor entitled “Homebond Agreement” which
contains details of the warranty.
Land Registry
Carried out by the solicitor to register the buyer as the new owner of the
property. The land registry authority retains the records of who owns the land.
Leasehold
Land held under a lease for a number of years, on which ground rent is paid.
Lender’s valuation
A valuation of the proposed property carried out by the lender before agreeing
to give out a mortgage. This is only a valuation survey. A separate full
structural survey may be needed by the buyer.
Life Assurance
An insurance policy which pays out a fixed lump sum on death of an
individual. Life Assurance helps protect from financial difficulties.
Loan-to-value
A percentage expressing the size of mortgage in relation to the value of the
property. For example, property value = €100,000, mortgage size = €90,000
therefore loan-to-value = 90%.
Mortgage
A long term loan to fund the buying of a property.
Mortgagee
The lender of a mortgage.
Mortgagor
The house buyer who takes out a mortgage.
Mortgage Deed
The legal charge of the lender until the loan has been re-paid.
Mortgage Term
Period over which mortgage is to be repaid.
Mortgage Protection Policy (MPP)
An insurance policy often arranged in conjunction with a repayment
mortgage, which is taken out to ensure that the loan will be paid off should
the borrower die before the end of the mortgage term. This is not used when
an endowment policy is used to pay off the loan.
Management Companies
A company set up to manage the services that are provided and to carry out
the repairs or maintenance required. The owners look after the management
of the companies who will control the service charges etc.
Premium
The monthly amount payable to an insurance policy.
Principle
The sum of the loan on which interest is calculated.
Property Insurance
You will need to insure the property itself. It is advisable to review the
insurance cover regularly.
Redemption
When a mortgage is fully repaid.
Repayment Mortgage
A basic mortgage capital and interest on the loan are paid off in monthly
installments.
Solicitor
Legal professional who acts on behalf of the buyer in the purchase of a
property. The solicitor will check the legal position of the property, carry out
a Local Authority Search, Land Registry and oversee the exchange of
contracts between the two parties.
Stamp Duty
If you are a first time buyer you are exempt from stamp duty, no matter how
large the property you buy.
On new homes of up to 125 sq. metres (1,364 sq.feet), be it a house or an
apartment, no stamp duty is payable by any owner occupier.
On new homes where the floor area is greater than 125 sq. metres (1,364
sq.feet), stamp duty is payable at the following rates.
Investors also pay stamp duty on new homes according to the above table.
Please consult your solicitor for further advise.
PROPER VALUE RATE
Up to €125,000 Exempt
Next €875,000 7%
Balance 9%
Term
The period in which a mortgage is taken out.
Title
The legal right to ownership of a property.
Title Deeds
The document which shows the ownership of a property.
Valuation Survey
A survey carried out by the lender to ensure the property’s value is not less
than the proposed loan. Often the lender will arrange the survey and bill the
buyer. This cannot be used as structural survey.
Warranty
A guarantee to accept responsibility for necessary repairs over a specified
period of time.
Will
As a homeowner, it is advisable to make a will – or alter an existing one.
Your solicitor will advise you.