Explanation of Terms2020-09-30T19:54:04+00:00

Explanation of Terms

Please note that these explanations are not legal definitions. We include them to clarify the meaning of words and phrases in this Website, your Lease or Transfer Documents.

Assignment – The transfer of a lease from one person to another, usually by sale. Conditions regarding the transfer may apply. Conditions will be contained in the Lease or Transfer Documentation.

Breach – The breaking of an agreement or contravening of a clause within an agreement; failure to do what a party says he/she will, or will not do, in an agreement.

Clause – Sub-division of a document, to contain certain terms or provisions of an agreement or contract.  Usually numbered consecutively and sub-clauses may follow.

Community Centre – The farm building, converted for the benefit of all who live at Newhall, which will form the community facilities, as well as being the location for the Estate Office.

Contractual Obligation – A legal obligation imposed and, if not complied with, breaches the agreement.

Conveyance – The legal transfer of a freehold property, from one person to another, usually by sale.

Covenants –The terms contained or implied in a lease or transfer, which cast positive and negative obligations on the parties to the document.

Deed – A formal written legal document, which must make clear that it is intended to be a deed.  The main requirements are that it must be signed by its maker in the presence of a witness or, at the maker’s direction, in the presence of two witnesses.  A deed normally takes effect on delivery, which consists of handing it to the other party.

Demise – A legal term, meaning to lease for a period of time e.g. “the Lessor hereby demises to the lessee all that ground floor flat known as……….”.  The property demised is referred to as the demised premises and the lease should contain a full description of the property, plus a plan annexed to the lease.  A precise definition of the demised property is particularly important when it comes to determining who is responsible for repairs and maintenance, particularly such things as window frames, glass, front doors, bathroom fittings, etc.

Estate Service Charge – The service charge, payable by all owners at Newhall, towards the upkeep of the communal areas in this development.

Freeholder – The outright owner of the land. A freehold is the strongest form of title over land, under English Law.

Leaseholder / Lessee The person who acquires the lease of a property for a fixed term.

Landlord/Lessor – The owner of a Building, who leases the properties within a building to the Leaseholder.  The Lessor is not always the freeholder of the land.

Managing Agent – An organisation, appointed by the freeholder or Landlord/Lessor or Management Company/Residents’ Association, to carry out some or all of the management responsibilities imposed under the terms of the lease or legal transfer.

Management Agreement – A legal contract, appointing a managing agent. This document details the duties and fees payable for the services the agent provides.

Management Company – A Company, whose main purpose is the management and administration of a block of flats and /or an estate.

Payment on Account An interim or advance payment, by a leaseholder, towards the costs of services for which they will be liable when the final costs have been calculated, usually at the end of each financial year, as described in the lease or transfer.

Public Liability Insurance An insurance policy, designed to protect members of the public, injured or affected by an accident or occurrence on private land.

Warranty A formal guarantee, given by one party to another, about a statement of fact for condition of an object.

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