Property auction glossary
The jargon made simple: To help you understand the new terms used around auction sales this is a simple glossary of common terms with an explanation behind each one.
An amount by which something is won.
Memorandum Of Contract
A form preceding a contract of sale, in which two parties agree upon the same objective - the sale / purchase of a property.
Memorandum Of Sale
After an offer has been accepted on a property, the agent selling the property produces a 'Memorandum of Sale'. The Memorandum of Sale lists the buyer, vendor, buyer’s conveyancing solicitor and vendor's conveyancing solicitor and confirms the price the buyer has agreed to pay for the property. The selling agent distributes this document to the various parties.
The stock of an auction house tends to influence the sort of buyers attracted to the sale. Some of the best auction buys can be when a property is mismatched to the auction house & audience. For example, a regional auctioneer selling a property 'out of area'.
Refers to an untrue statement made by one party, which is not only relied upon by the aggrieved party but also induces them to enter the contract, causing them to suffer loss.
Money Laundering Regulations
Money laundering means exchanging money or assets that were obtained criminally for money or other assets that are 'clean'. The clean money or assets don’t have an obvious link with any criminal activity. Property Auctions require all buyers to comply with the ID verification process to comply with the regulations.
A legal agreement by which a bank or building society lends money at interest in exchange for taking a charge on the title of the debtor's property.
A mortgage valuation survey is commissioned by the lender in order to establish the value of the property. This will be taken into account when the mortgagor is deciding the maximum amount they will lend against the security of the property. It is not a detailed or in-depth report as to the condition of the building.