Estate agents glossary

Short, plain-English definitions of the terms you'll meet when choosing a estate agent provider in Birmingham.

What is a completion date?: The completion date is the day on which ownership of a property legally passes to the buyer, keys are handed over, and the purchase funds are transferred to the seller.
What is a Help to Buy equity loan?: A government loan scheme that provided up to 20% of the purchase price on new build homes, letting buyers purchase with a smaller deposit; the scheme closed to new applications in England in April 2023.
What is a multi-agency agreement?: A multi-agency agreement is a property instruction where the seller appoints two or more estate agents at the same time to market and sell the property, usually on competing terms and at a higher commission rate than sole agency.
What is a property chain?: A property chain is a sequence of interdependent property transactions in which each buyer depends on selling their own property to complete their purchase, creating a domino effect where one delayed or failed sale can stall everyone in the chain.
What is a property redress scheme?: A mandatory independent scheme that estate and letting agents must join to resolve consumer complaints and disputes outside of court.
What is a Section 21 notice?: A Section 21 notice is a legal document served by a landlord to end an assured shorthold tenancy in England without requiring proof of tenant breach or misconduct.
What is a Section 8 notice?: A Section 8 notice is a legal document a landlord serves on a tenant to start eviction proceedings based on specific grounds, such as unpaid rent or breach of the tenancy agreement.
What is a sole agency agreement?: A sole agency agreement is an arrangement where a property owner instructs a single estate agent exclusively to market and sell their property, giving that agent sole rights to find buyers during the contract period.
What is a tenancy deposit protection scheme?: A tenancy deposit protection scheme is a government-backed system that legally holds and safeguards a tenant's deposit money during and after their rental period in England.
What is an Article 4 direction?: An Article 4 direction is a local authority order that removes permitted development rights in a designated area, typically to control residential conversions and HMO development.
What is an assured shorthold tenancy (AST)?: An assured shorthold tenancy (AST) is the statutory tenancy type used for most private rental properties in England, typically granted for a fixed term with defined rights and obligations for both tenant and landlord.
What is an Energy Performance Certificate (EPC)?: An Energy Performance Certificate is an official document that rates a building's energy efficiency on a scale of A to G and must be obtained before a property can be marketed for sale or let in the UK.
What is an HMO licence?: An HMO licence is a legal permit that Birmingham landlords must obtain to rent a property to three or more unrelated occupants as their primary residence, required under mandatory or additional licensing schemes depending on property location and occupancy.
What is client money protection?: Client money protection is a scheme that safeguards money held by letting agents on behalf of landlords and tenants, ensuring funds are protected if the agent becomes insolvent or goes out of business.
What is conveyancing?: Conveyancing is the legal process by which property ownership is transferred from one party to another, handled by qualified solicitors or licensed conveyancers.
What is exchange of contracts?: Exchange of contracts is the point at which buyer and seller sign and swap contracts, the deposit is paid, and the property transaction becomes legally binding.
What is gazumping?: Gazumping occurs when a seller accepts a higher offer from a new buyer after already agreeing to sell to another buyer, which is legally permissible until exchange of contracts.
What is gazundering?: Gazundering is when a buyer lowers their agreed offer shortly before exchange of contracts, forcing the seller to either accept the reduction or withdraw from the sale.
What is leasehold vs freehold?: Leasehold is a property right to occupy a building for a fixed term, with ground rent payable to the freeholder; freehold means owning the building and land outright with no ground rent.
What is sealed bids?: A sale method where interested buyers submit a single sealed, confidential bid by a fixed deadline, typically used when a property attracts strong competition.
What is selective licensing in Birmingham?: Selective licensing is a scheme operated by Birmingham City Council that requires private landlords to obtain a licence for rental properties in specific designated areas of the city, separate from HMO licensing requirements.
What is shared ownership?: Shared ownership is a scheme allowing buyers to purchase a percentage share of a property (typically 25-75%) and pay rent to a housing association on the unsold portion, with the option to buy additional shares later.
What is sold subject to contract (STC)?: Sold subject to contract (STC) is a property status indicating an offer has been accepted but the sale remains conditional until contracts are formally exchanged between buyer and seller.
What is Stamp Duty Land Tax (SDLT)?: Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in England above a set threshold, calculated in bands according to purchase price, with exemptions available for qualifying first-time buyers.