| Deposit | The deposit is a sum of money paid by the Buyer to the Seller through their conveyancers on Exchange of Contracts. The deposit is part payment of the purchase price and is up to 10% of this. Very often, however, a lower deposit is paid, for example where the Buyer is obtaining a 95% mortgage, in which case the deposit would be 5%. Where there is a chain of transactions, it is often the case that if the Buyer is selling a property at the same time as he/she is buying a property he/she will use the deposit received on the sale as the deposit payment on the purchase. All these matters are arranged at the point of Exchange of Contracts. |
| Disbursements | Fees payable to third parties during the conveyancing transaction, including Stamp Duty Land Tax, Land Registry fees and search fees. |
| Equity | The owner’s financial interest in the property, i.e. its sale proceeds/estimated value less the amount owed on any mortgages. |
| Land Registry fees | The fees payable to the Land Registry to register ownership of property and mortgages and carry out certain searches. |
| Stamp Duty Land Tax (SDLT) | This is a tax payable by the Buyer in connection with the property transfer. The tax is paid to HM Revenue & Customs. As a general rule it applies only if the purchase price of the property exceeds the current level set by HM Revenue & Customs. |
| Telegraphic transfer/CHAPS | Same day electronic transfer of funds from one bank account to another, for which most banks make a charge. |
