Legal Jargon

A document used to confirm that one person agrees to be responsible for someone else’s debt or mortgage obligations should that person fail to carry out their own obligations.

This is the term for a document or deed that was used to transfer ownership of property from one person to another without any payment being made. Deeds of gift are now obsolete and will not be accepted by the Land Registry. If you wish transfer property for no financial return you would need to use a Transfer for Nil Value.

A document or deed that either creates new covenants or confirms that the new owner of a property will take on existing covenants to ensure they continue to exist with each transfer of the land.

A declaration of trust is a legally binding agreement between joint owners of a property and/or anyone else who has a beneficial or financial interest in the property.

A contract is a legally binding agreement between two or more parties – people or organisations. In simple terms, a contract is an agreement to provide goods or services, exchange assets, or provide labour or expertise, under a specified set of terms and within the law of a specified jurisdiction. These terms will typically relate to price/cost, quality and timeframe but there can be many more complex and inter-related terms stipulated within a contract, including what happens when one of the parties breaches the terms of the contract. Many but not all contracts are in written form.

The document sent to a buyer or seller of residential or commercial property after exchange of contracts setting out the monies to be received and paid on their behalf and requesting any balance that may be required to complete the matter. Completion statements can also be used to request monies from another party.

The final stage of a property transaction. In a residential property transaction, completion is the point at which ownership of the property is transferred from the seller to the buyer, following final payment and the buyer receives the keys. In commercial property transactions completion can also mean the completion of a right, interest or agreement such as a Deed of Easement.

Items of value. These can include land, buildings, money held in bank accounts and investments, as well as personal items such as vehicles, furniture, art and jewellery.

A discount for tax purposes on the value of actively farmed agricultural land and property as part of a deceased person’s estate. When determining the value of an estate’s assets in order to calculate inheritance tax, you or your executors may be able to claim agricultural property relief, which reduces the value of agricultural land or pasture by either 100% or 50% so long as it was occupied by the owner for agricultural purposes for at least two years up to the transfer/death; or, in the case of tenanted land, it was owned for at least seven years up to the transfer/death and used for agricultural purposes during that time. Farm buildings, the farm house and woodland can also qualify subject to certain conditions.

The following assets do not qualify for agricultural property relief:

• farm equipment and machinery
• harvested crops
• derelict buildings i.e. buildings no longer capable of being used for agricultural purposes
• livestock
• property for sale for which contracts have been exchanged