New Homes Week Glossary

We understand that buying a home can be a little complicated, especially if it’s your first time or you’re purchasing a new-build property. That’s why we’ve put together a glossary of terms to help you navigate the world of property from A to Z, so you always know what’s going on: 
 

Authority to Proceed / Exchange: Documents from Help to Buy confirming you’re ready to exchange contracts.

Assisted Move: A scheme where the developer helps you sell your current home, rather than buying it themselves.

Contract / Missive: The legal agreement that sets out the terms of the sale before exchange.

Completion: The day you pay the remaining balance, get the keys, and officially become the homeowner.

Completion on Notice: Instead of a fixed date, the developer gives you notice (often 10 working days) once the home is finished and ready to complete.

Deposit: The portion of the purchase price paid on exchange (often 5-10% on a new build, this may be lower than resale homes, depending on the developer).

Defects Liability Period: A set period (usually 2 years) during which the developer is responsible for fixing defects that arise due to construction issues.

Exchange of Contracts: The point where the sale becomes legally binding. You pay your deposit and agree to complete once the home is ready.

Energy Performance Certificate (EPC): A document showing the home’s energy efficiency, running costs, and carbon footprint.

First Fix: The pre-plastering stage of a build. With the foundations and roof in place, work begins on internal walls, floors, ceilings, carpentry, pipework, and electrics.

Freehold vs Leasehold:

• Freehold: You own the home and the land it stands on.
• Leasehold: You own the home for a set lease term, but not the land it’s built on.

Incentives: Extras offered by the developer to help secure a sale, such as stamp duty contributions, deposit contributions, upgrades, or part exchange

Longstop Date: The final date by which the developer must complete the property if there are delays. If the home isn’t finished by this date, you may have the right to withdraw and get your deposit back.

Land Registry & Title Deeds: Official government records confirming who owns the property and on what terms.

Mortgage Offer: The formal offer from your lender confirming they will fund your purchase.

Off-Plan: A property that has not yet been built, which you can buy based on drawings, CGI images, or a show home.

Plot: The specific piece of land your home is built on within a development.

Part exchange: A scheme where the developer buys your current home as part of the deal when you purchase a new-build property.

Predicted Energy Assessment (PEA): A forecast energy rating for a new-build home, used before the final EPC is issued.

Reservation Fee: A refundable or partially refundable payment that reserves your plot for a set period (usually) and removes it from the market while contracts and mortgages are prepared.

Repayment Mortgage: A mortgage where each monthly payment reduces your loan balance by paying off both the interest and part of the capital.

Subject to Contract (STC): Indicates an offer has been accepted but is not yet legally binding.

Service / Estate Charge: A fee paid for the upkeep of communal areas and shared services.

Second Fix: The finishing phase of construction, when the builder installs items such as baths, sinks, skirting boards, internal doors, and windows.

Searches: Checks carried out by your solicitor into local planning, environmental issues, and property records.

Survey: An independent assessment of the property’s condition (different from snagging).

Snagging/ Snag List: A final inspection to identify defects or unfinished work before, or shortly after, you move in.

Vendor: The seller of the property (usually the developer or builder).
 

These are just some of the terms you might encounter on your property journey. If anyone says something you don’t understand, our friendly estate agents will be more than happy to walk you through it. Find your nearest branch here or get in contact with our new homes team to learn more about new homes.