Incumbrance
A term used often in conveyancing transactions an incumbrance is most often a legal charge mortgage or secured loan on a property but can also include a registered or unregistered land charge a planning charge or condition or a restrictive covenant. Conveyancing solicitors acting for purchasing conveyancing clients will check for incumbrances affecting a property by raising conveyancing enquiries with the seller’s conveyancing solicitors and obtaining copy deeds and checking the results of conveyancing searches as part of their conveyancing duties. Purchasing conveyancing clients will be informed by their conveyancing solicitors of any incumbrances affecting the property with conveyancing reports sent as part of the conveyancing process by their conveyancing solicitors.
Tenants In Common
In conveyancing terms the phrase Tenants In Common refers to a way for joint purchasers to hold the property of trust for themselves. Unlike beneficial joint tenants, tenants in common hold the property in shares specified by the purchasing conveyancing clients on trust for themselves. In the event of the death of one of the Tenants in Common their share in the property will revert to their estate and be distributed in accordance with the terms of their Will or the intestacy rules if no Will exists. Conveyancing Solicitors acting on behalf of jointly purchasing conveyancing clients will explain the two ways the purchasing conveyancing clients may choose to hold the property and obtain their formal instructions. The conveyancing solicitors will then incorporate the conveyancing clients preferred way of holding the property into the Transfer or Purchase Deed and deal with the registration of the property in this way as part of their post completion conveyancing duties.
Chattels
This term is used in conveyancing by conveyancing solicitors to describe items of personal property that may be included within the sale price of a property and will usually be detailed on an accompanying form called the fittings and contents list which will form part of the conveyancing contract. Not all conveyancing contracts will include chattels. The Fittings and Contents List is sent by the selling conveyancing solicitors to be completed by the selling conveyancing client at the start of the sale conveyancing process. The Fittings and Contents List will then form part of the conveyancing contract documents issued to the buyer’s conveyancing solicitors by the seller’s conveyancing solicitors. The List will then be included within the conveyancing contract for the purchase. Any Chattels price shown on the conveyancing contract or conveyancing agreement for the sale of the property will be completed with a sum by the seller’s conveyancing solicitors when additional items are being purchased by the purchasing conveyancing clients where their cost is not included in the sale price of the property.
Contract Rate
Contract rate is shown as an interest rate on the first page of most conveyancing contracts or agreements. It sets out the rate of interest payable on the contract should either party to the conveyancing transaction fail to complete the contract on the completion date as agreed during the conveyancing process.
Covenant
A covenant is a term used in conveyancing and is a legally binding agreement or promise to do something or NOT to do something which can be incorporated into a conveyancing contract conveyance or lease for a property. Covenants can be either positive and detail something that must be done or restrictive and detail something that must NOT be done. Restrictive covenants in freehold conveyancing transactions run with the land unless they are deemed to be acquiesced and no longer enforceable due to time lapse from the start of the breach. When purchasing a property subject to covenants a purchaser’s conveyancing solicitors will require sight of copies of any deeds containing covenants that affect the property. These copies will be requested from the seller’s conveyancing solicitors by the purchasers conveyancing solicitors during the conveyancing title investigation and enquiries stage. The purchaser’ conveyancing solicitors will supply copies of documents to the purchasers during the conveyancing process to ensure they are aware of the covenants to which they will be subject if the purchase proceeds to legal completion. The purchaser’s conveyancing solicitors will also check with the seller’s conveyancing solicitors that none of the covenants have been breached as a part of their duties in a conveyancing transaction.
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