Jargon Buster
Disinstruction – Withdrawal
This refers to a seller who tells their agent they no longer wish to sell their property.
Duty of Care
Letting agents have a duty of care to both landlords and tenants and must provide them with the correct advice.
Electrical Installation Condition Report (EICR)
EICR refers to an Electrical Installation Condition Report and rental properties must have these carried out every five years.
Encumbrance
An encumbrance refers to any claim, interest, or legal restriction on a property that is imposed by a third party and can affect subsequent owners. It could include things like mortgages, liens, easements, or restrictive covenants that limit the use or transfer of the property.
Energy Performance Certificate – EPC
Any building being constructed, or advertised for sale or rent, must have a valid Energy Performance Certificate (EPC).
EPCs are in place so properties comply with The Energy Performance of Buildings (England and Wales) Regulations 2012.
Exchange of contracts
Exchanging of contracts between a buyer and seller creates a legally binding agreement.
Execute (a tenancy)
Executing a tenancy refers to the procedure of creating a legally sound tenancy through dating both the original and counterpart documents and exchanging them between landlord and tenant.
Executor
An executor is the person named in a will who is responsible for settling the financial affairs of someone who has died.
Extensions (Renewals)
When a tenancy reaches the end of its fixed term, an extension or renewal for either another fixed term or a periodic, month by month agreement can be negotiated between a landlord and tenant.
Fair wear and tear
Fair wear and tear refer to the damage that occurs through normal, day-to-day use of a rental property. An example of fair wear and tear would be a worn carpet from normal use.
FENSA certificate
Windows that have been replaced since 1st April 2002 must be supported by a FENSA certificate or a building regulations certificate, to show that they legally comply. A FENSA certificate should be provided by the seller’s conveyancer to the buyer’s conveyancer as a part of the home selling process.
FICO
FICO is an abbreviation of Financial Intermediaries and Claims Office – part of the Inland Revenue responsible for administering tax for overseas landlords.
