This glossary of terms has been composed by FIRST STRATA to provide you with an easily accessible and comprehensive description of the many terms frequently used in all aspects of land sales.
We trust you will find it both useful and informative.
In a valuation of licensed premises based upon the quantity of liquor sold, an allowance made to cover losses due to spillage, spoilage or evaporation, especially of draught beer.
"beyond the powers". It applies where a company, public authority or other body acts in a manner exceeding the powers granted to it by the relevant memorandum of association or other document. The term also applies where a court or tribunal exceeds its jurisdiction. Cf INTRA VIRES.
In a dispute where each party has appointed an arbitrator and they subsequently disagree, a third person called in to adjudicate and resolve the dispute.
A road for which the highway authority has not accepted responsibility as a public highway and which is not, therefore, maintained at public expense.
An offer made without conditions, such that its unqualified acceptance by the offeree will create a contract.
See SUBLEASE.
See SUBLEASSEE.
Where an offer for a property has been made and accepted in principle but the transaction is still subject to contract.
Immature trees and other low growth, cleared from time to time in the interests of good forestry. Cf COPPICE.
1. Any person who, for an agreed consideration, enters into a commitment which gives him a financial liability in the event of some specific happening, eg a member of an insurance company or syndicate who accepts the risks covered by a specific insurance policy.
2. An individual or body, eg an issuing house, who accepts liability to purchase (at the issue price less an agreed discount) those stocks or shares not taken up by the public during flotation of a company or by the shareholders on a rights issue. Cf SUB-UNDERWRITER.
A principal whose existence is not disclosed by an agent acting on his behalf in negotiations with a third party. In such circumstances both the principal and the agent may be liable on the contract but the third party may be able to disclaim liability to the principal, eg if he proves that he wished to contract with the agent personally, or that the (undisclosed) agency is not consistent with the terms of the contract.
The characteristics of a covenantor, eg a tenant, whose financial standing and reputation are such that his ability and willingness to pay his dues and comply with his other obligations promptly are unquestioned. See COVENANT 2.
Descriptive of a property the title of which is free of liens and other encumbrances, especially in relation to freehold titles.
The total amount of any claims for loss of development value for a parcel of land originally made under Part VI of the Town and Country Planning Act 1947 but converted into rights to compensation now embodied in Part VII of the 1971 Act, including a one-seventh addition to represent interest. It is payable in certain circumstances on refusal of planning permission for new development or on compulsory purchase. See CLAIM HOLDING.
The condition of a dwelling which renders it unfit for human habitation by failure to meet the criteria relating to repair, stability, freedom from damp, internal arrangement, natural lighting, ventilation, water supply, drainage and sanitary conveniences, facilities for the preparation and cooking of food, and arrangements for the disposal of waste water. See CLEARANCE AREA; CLOSING ORDER; DEMOLITION ORDER; SLUM CLEARANCE.
A dwelling which has been formally declared by the local authority as failing to meet prescribed standards of fitness for human habitation under section 604 of the Housing Act 1985. See UNFITNESS FOR HUMAN HABITATION.
A contract in which one party, for the benefit of another party, undertakes to do or refrain from doing some act but without any corresponding promise by the other party at that stage of the agreement eg the grant of an option (until it is exercised, when the contract will become bilateral).
A special form of development plan which, under the Local Government Act 1985, Schedule I paragraph 2, will replace structure and local plans within the areas of local planning authorities in Greater London and metropolitan counties, as from dates to be appointed by order of the Secretary of State.
A scheme of multiple but direct ownership of single properties in property units, eg in an authorised unit trust or by shares, similar to equities in a company, which can be traded by or on behalf of their owners.
A form of equated yield suitable for use in the valuation of unitised property. See DONALDSON'S INVESTMENT TABLES.
