ESPC Jargon Busters 

In our Jargon Busters we break down the terminology of the property industry to help you feel confident and in control of your home-buying journey.   

Agreement in Principle 

An ‘agreement in principle’ (sometimes referred to as a ‘decision in principle’ or a ‘mortgage in principle’) is a document from your mortgage lender, outlining how much the lender is prepared to lend you for your mortgage. 

For more information on deposits visit “Agreement in Principle Explained by ESPC” page 

Asking Price 

The ‘asking price’ of a property is the price that a property is being advertised for. The asking price can be confusing when buying a property in Scotland, as often, it isn’t a price that a seller is actually hoping to achieve. In many instances, sellers will be planning to sell the property for a figure higher than the asking price. 

For more information on deposits visit “Asking Price Explained by ESPC” page 

Building Survey 

A building survey is a report prepared on the condition of a property for sale. It can also be known as a structural survey. There are different levels of survey available depending on your budget, the condition or age of the property you're hoping to buy, or how much information you'd like to know about the property before committing to a formal offer. 

For more information on deposits visit “Building Survey Explained by ESPC” page  

Chains 

A chain is the term used to describe the group of buyers and sellers linked by their property sales - each person is linked to the next by the property they are either buying or selling. The chain usually begins with a first-time buyer or someone who does not have a property to sell and ends with a person who is only selling their property, not purchasing another. Everybody in between these parties is reliant on those above and below them in the chain to ensure all transactions proceed smoothly. 

For more information on deposits visit “Chains Explained by ESPC” page 

Closing Date 

In Scotland, a closing date is the set time and date given for all interested parties to submit their best and final offer on a property they'd like to purchase. All bids are 'sealed bids' - which is to say, if you are bidding at a closing date, you will not know how many other bidders there are or what their offers look like.  

The selling agent will unseal the bids after the set time has passed on the closing date, and share these with the seller, who will then choose their preferred offer. 

A seller will often choose the highest offer, but this is not always the case - so it is always worth making your bid as attractive as possible, by highlighting your status as a buyer and being prepared to be flexible or to move quickly. 

For more information on deposits visit “Closing Date Explained by ESPC” page 

Conveyancing 

The legal element of a property purchase or sale is known as conveyancing. It is basically how the contract is created which transfers the ownership of a property from one person to another. This is done by a series of letters being exchanged, commonly known as missives. When the missives are concluded, the transaction becomes legally binding on both the seller and the purchaser. After missives have been concluded, the seller is legally bound to transfer ownership to the buyer – if they pull out, the buyer can claim damages. Likewise, if for any reason, the purchaser cannot complete the transaction, they are liable for damages to the seller.  

For more information on deposits visit “Conveyancing Explained by ESPC” page 

Date of Entry 

The Date of Entry is the date on which the buyer of the property pays the purchase price to the seller and the seller gives the keys and legal ownership of the property to the buyer. It is sometimes also referred to as the ‘settlement date’, ‘date of settlement’, ‘completion date’ or ‘date of completion’. The Date of Entry is a key negotiating point when selling or buying a property as it is the date by which the seller has to move out. 

For more information on deposits visit “Date of Entry Explained by ESPC” page

Deeds 

‘Deeds’ or ‘title deeds’ are the terms used to describe a series of documents which prove the ownership of a property and the history of its ownership. They will include documents which cover mortgages, lease information, contracts as well as any wills or conveyancing.   

For more information on deposits visit “Deeds Explained by ESPC” page 

Deposit 

A deposit is the amount of money you pay upfront towards the full cost of a property while your mortgage covers the rest.   

Benefits of a bigger house deposit: 

The bigger your deposit, the smaller your loan and the lower the monthly payments. Plus, as the deposit size increases, the interest rates available tend to come down as it is less risky for mortgage lenders.  

For more information on deposits visit “Deposits Explained by ESPC” page  

Energy Performance Certificate

An Energy Performance Certificate (EPC) gives information on how energy efficient a building is and how it could be improved.  

These requirements are closely linked with national efforts to reach net zero and the Scottish Government’s Energy Efficiency Standard for Social Housing legislation is expected to make them increasingly important when selling. 

For more information on deposits visit “Energy Performance Certificate Explained by ESPC” page