Property Law Glossary

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A brief explanation of some of the words and phrases when discussing real estate and topics with English lawyers.

 

TERM/PHRASE

SUMMARY EXPLANATION
ADVERSE RIGHTS or POSSESSION  This is where a person gains rights over, or title to, land that is owned by someone else because of their continued use of the right or land. It is sometimes referred to as ‘squatters’ rights’. 
COMPLETION  The process when the conveyance is signed, the price is paid and ownership of land is transferred. 
CONVEYANCE Name for the legal document by which ownership of land is transferred.  The transfer of registered land must be recorded at the Land Registry in order to take effect. 
CONVEYANCING The process of buying, selling or (sometimes) leasing land in England.  It begins with an offer, then “exchange of contracts” and finally “completion”. 
DEED In some circumstances a deed is required to complete a transaction. In a commercial situation the most common use is where a variation or concession is made without the other party giving anything in return. A deed is enforceable regardless of the legal requirements for contracts such as the need for consideration. 
“THE DEEDS” An expression which is used to describe all of the documents of title to land. 
EASEMENT  The right to use the land of another for a specific purpose. The easement is itself a real property interest, but legal title to the underlying land is retained by the original owner for all other purposes. Typical easements are for rights of way/access to another property, for utility or sewer lines both under and above ground, entry to make repairs on a fence etc. 
ENCUMBRANCES  a general term for any claim or lien on a parcel of land. These include: mortgages, deeds of trust, unpaid taxes, easements and water or agricultural rights. 
ESTATE AGENTS  The commercial agent through whom most land is bought or sold.  In England they are almost entirely unregulated by laws. 
EXCHANGE OF CONTRACTS  The process of each part signing the land sale/purchase contract and giving a signed copy to the other.  From that point the courts will generally order performance of the transaction. 
FREEHOLD This form of tenure is absolute right to the land; the FREEHOLDER will be said to hold the best title. 
GAZUMPING Describes the situation where a third party presents a higher bid for a property than that already agreed informally by the seller with another prospective buyer 
LANDLORD A person firm or company which grants a lease or licence to a tenant and is accordingly responsible for the landlord’s obligations under the lease. The landlord may be the owner of the freehold or a leasehold interest that permits him to underlet. 
LAND REGISTRY  The Government office that is responsible for maintaining the Land Register, which details all information relating to a particular piece of land, essential in passing title in that land. 
LAW OF PROPERTY ACTS 1925-1991  The main body of statutory law in England relating to real estate (but a lot of other law can be found in case law).
LEGAL CHARGE  Essentially the same as a mortgage – a security interest over land. 
LEASE An agreement between the owner of a piece of land and another party that grants that other party a beneficial interest to use the land subject to certain conditions. It will usually specify such details as the duration of the lease and the rent that is to be paid in return for the use of the land. 
LEASEHOLD Property acquired under a Lease. 
MORTGAGE The term used to describe both a loan used to buy land and the legal document which creates a security interest in favour of the lender. 
NUISANCE A form of civil wrong, governed by the rules of tort, which occurs where a person’s rights associated with the use and enjoyment of land are interfered with. It can include noise and air pollution as well as the restriction of light.
PROPERTY INVESTMENT  The acquisition of real estate for development and sale or generating an income from rents.
PLANNING PERMISSION  Although in general the owner of freehold land will have the right to build on it or develop it, this will be subject to statute laws on ‘town and country planning’ which mean that he needs permission from the local council. 
QUIET ENJOYMENT Implied obligations of a landlord that a tenant’s peaceful enjoyment of the leased premises will not be interfered with by the landlord or by any person who claims under him. “Quiet” is not restricted to an absence of noise; it has been interpreted as “uninterrupted”. 
REGISTERED LAND Most (85% approx.) land in England is now registered, so that title/ownership is proved by the records kept by the Land Registry.  Legal charges and mortgages, easements and restrictive covenants are also registered. 
RENT REVIEW The landlord may have reserved the right to review the rent at intervals during the period of the lease. There is usually a mechanism that can be invoked to determine a new rent which will reflect changes in the market since the lease was originally granted. The lease usually specifically states that the rent may only be reviewed upwards to avoid the rent being reduced if the market has fallen. 
RESTRICTIVE COVENANT This is a provision written into the title to land that prevents a person from doing a specified thing (for example, not allowing any building work, or preventing use of the land for business). 
RIGHT OF WAY This is an ‘easement’ right granted permitting access to land, the details of which will be contained within the title to the property. It may be in the form of a public right of way, or access granted to a neighbour in reaching adjoining land. 
SEARCHES AND ENQUIRIES  There are very few statutory obligations on a seller of land to disclose “problems” – with the title or the condition of the property.  So all buyers must engage in quite a complex process of having searches made at the Land Registry, at the local council and with other agencies, and having a survey conducted.  They also make specific enquiries which the seller or his lawyer may answer. 
STAMP DUTY Tax payable on the transfer of land or shares in the UK – the full name is Stamp Duty Land Tax. 
‘SUBJECT TO CONTRACT’ When buying a property the initial offer should be ‘subject to contract.’ If a survey then finds a problem with the property, terms of lease, or anything else such as disputed boundaries, you can pull out. 
SUB-TENANT When a tenant sublets, he usually needs to obtain the landlord’s prior written consent or licence to do so. A business lease usually contains a term preventing the tenant sub-letting or parting with possession of the property by allowing a third party to occupy all or part of the premises. Since the existing tenant remains directly liable under the lease for rent, the landlord ought not to be particularly concerned over the credit worthiness of the sub-tenant. 
SURVEY  Having the condition of a building/land professionally inspected before proceeding with a purchase/lease. 
TENANT Under a lease or tenancy agreement, the party who is given by the landlord the right to occupy the property on an exclusive basis in return for rent. The term will include a new tenant who takes an assignment of the new tenant’s interest in the lease. 
TENURE The nature or ‘status’ of title to land, being (generally) either freehold or leasehold. 
TITLE The legal term meaning that a person is the owner of a particular asset. 
TRESPASS A tort (civil wrong); the act of interfering with the rights of another in relation to the use and enjoyment of land. 
TRUST A trust is the situation whereby property (e.g. land) is legally owned by one person for the benefit of another. The legal title is owned by the trustee and the equitable or beneficial interest is held by the beneficiary. 
UNREGISTERED LAND  Land where title is not (yet) recorded at the Land Registry but is demonstrated by possession of the “title deeds”.

 

Steve Janes
Real Estate Specialist Group
Member of Eurojuris International

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