Jargon Buster
Assured Shorthold Tenancy
Assured Shorthold Tenancies (ASTs) are the most common form of tenancy issued in the UK.
Best and final offers
When there is a lot of interest from buyers, the seller may opt to request ‘best and final’ offers. This means all interested buyers will submit their best possible offer for the property by a closing date and the seller will then decide which bid they wish to accept.
Bond
A bond is another name for a tenancy deposit, where the tenant pays money to a landlord or letting agent as security on the completion of the tenancy and its terms.
Bonds, or tenancy deposits, are capped at five weeks’ rent if the annual rent is less than £50,000 and six weeks’ rent if it exceeds £50,000.
Break clause
A break clause is a clause inserted into a tenancy agreement that allows a landlord tenant to leave a tenancy before the end of its fixed term.
For example, a two-year tenancy agreement with a one-year break clause could allow either the landlord or tenant to end the tenancy after 12 months, subject to them following correct procedures.
Building Regulation Approval
Applications to complete alterations to existing buildings or erection of new ones must be made to local authority buildings control officers before starting work.
Extensions and internal structural alterations where openings are created through load bearing walls are examples where Building Regulation Approval is required.
Buy-to-let
A buy-to-let property is a property specifically purchased by a landlord to rent out.
Cavity Wall Insulation
Cavity wall insulation is the prevention of heat loss through insertion of insulation into a property’s cavity wall space
Chain
A chain refers to a situation where multiple sales and purchases are interconnected and reliant on each other.
When a buyer joins the chain without having a property to sell, such as a first-time buyer, it is considered the end of the chain.
Agents will communicate with other agents in the chain to determine who is at the end of the chain and keep a record of this information.
CO
CO is the chemical formula for carbon monoxide, which is poisonous and produced by the incomplete burning of gas and liquid petroleum gas (LPG).
Gas appliances that are fitted incorrectly or badly repaired can cause CO to be produced in properties, while solid fuels like wood, coal and oil can also produce CO.
Common Household
Common Household refers to a rental property that is self-contained and shared as one house by two or more tenants, who are usually jointly and severally liable under the tenancy.
Completion
Completion occurs when a property legally changes hands between a buyer and seller and all money is transferred.
Conflict of Interest
A conflict of interest occurs when an agent could gain from multiple transactions and may not provide impartial advice as a result.
According to the Estate Agents Act 1979, agents are required to disclose any potential conflict of interest.
