Brennan & Co, Guernsey Property & Estate Agents

Buyers' Information

Tips & Terms

advocate: A Barrister who is qualified in English and Norman French Law and is admitted to the Guernsey Bar. Purchasers are responsible for their own Advocate's fees, the cost of any bonds (see Bonds below) and document duty (see Document Duty below). Typically, Advocate's fees are 0.75% of the purchase price, document duty is 2% on properties of £150,000 or less, 2.5% on properties of between £150,001 and £250,000, and 3% on properties of £250,001 and above.
agent: A person who acts for and on behalf of another, i.e Client.
applicant: A prospective Purchaser.
asking price: The price at which a property is marketed, which may or may not be achieved, depending on market conditions.
bank valuation: A basic valuation which is used primarily by a bank or building society to establish an independent value of the property without a survey. This may be used for increasing the mortgage on the property to carry out home improvements.
bid / offer(s): An offer made in respect of a property.
bonds: The legal document registered in the Greffe which acknowledges that there is a debt against the property. Advocate's charge: £25 basic plus £3 per £1,000 on the first £10,000 and thereafter £2 per £1,000. Court Fee: £22.50. Registration Fee: £3-£6. Document Duty of 0.5% of the amount secured by the Bond.
broker: A middle man who acts impartially for both parties in a transaction.
cadastre: The States department responsible for applying the criteria used in determining the Tax on Real Property.
client: The party for whom an Agent works and to whom the Agent has a duty of care to act in their best interest.
completion date: The date upon which the property conveyance will take place and vacant possession given.
conditions of sale: The written contract between the buyer and seller of a property, which sets out the agreement between both parties and anything that the sale/purchase is subject to.
congè: A feudal duty which was payable to the Seigneur who owned the rights to the land on which the property was built. Conge was abolished in 2003 and is now included in the Document Duty payable on property transactions.
conveyance: The transfer of ownership of a property which, by law in Guernsey, has to be conducted through the Royal Court. Hence, you will need to employ an Advocate to purchase a property.
D.P.T.: From 26 March 2009 the States of Guernsey suspended Dwellings Profits Tax. For the record, D.P.T. was a tax introduced by the States of Guernsey designed to prevent speculation in residential properties.
deal: A layman's term for a property transaction.
detailed plans: Planning approval from the Environment Department with full working drawings approved, including the approval of Building Control and Heritage Committee (if applicable).
document duty: Also known as Stamp Duty. 2% Document Duty is payable on realty from £1 to £150,000. 2.5% is payable on realty from £150,001 to £250,000 and 3% on all realty above £250,000 and now includes Congè.
equity: The difference between the value of the property and the outstanding mortgage amount. When you have paid all off your mortgage then you own all of the equity
foreclosure / saisie: The procedure, known as Saisie proceedings, where the mortgage company or bank repossesses a property when mortgage repayments have not been maintained.
full structural survey: A full structural survey carried out by a Chartered Surveyor which may include investigative procedures and which is, therefore, extremely detailed and will generally take the surveyor several hours to complete.
future / hope value: A Valuer may consider that a property could have potential for development in some area, but the Planning Permission to carry it out has not actually been obtained. If the Valuer considers that the Permission would probably be forthcoming he/she may add a sum onto the valuation to take this potential into account.
greffe: Guernsey's office of public register which also registers all property transactions.
immunity certificate: Since 6 April 2009 (when the new Planning Law was introduced) advocates will advise purchaser that they will need to apply on their behalf for an Immunity Certificate from the Environment Department. There is a charge for this service, currently about £50.
listed building: The Heritage Committee is empowered to list buildings which it considers are of historical or architectural interest. In recent years, this has come to mean that the entire building, including the interior, is listed and will require additional approval if alterations are sought.
local market: The market which is available for locally born people, according to the Housing Authority regulations.
local market licence: People who are considered to be essential to the Island i.e. their occupation cannot be fulfilled by a local person, and who are granted a restricted Licence, usually for a fixed length of time, and are also subject to Tax on Real Property conditions. The exact criteria are individually assessed by the Housing Authority.
market: The place or imaginary place where properties are placed for sale.
market forces: External factors which determine the price of property, e.g. supply and demand.
mortgage: A loan made by a bank or building society to facilitate the purchase of a property whereby the lender's interest in the property is registered as security for the debt.
N.A.E.A: The National Association of Estate Agents. A member of the Association has a duty to abide by the Association's guidelines which include the obligation to act in the best interest of its clients and to inform clients of all offers received however high or low.
O.N.O.: Or nearest offer.
O.T.O.: Open to offer.
offers invited: An instruction from the Vendor asking for Purchasers to make offers on their property, using the asking price as a guide.
open market: A register of houses which are available for purchase or rental, to anyone who holds a UK or EU passport. The register has evolved from the late 1940s, when people came to Guernsey after the Second World War and placed such a demand on the limited housing market that the States of Guernsey limited the availability. The register closed in the mid 1970s and now comprises approximately 1,850 homes and hotels.
operative date: The date by which all of the conditions in the Conditions of Sale should have been fulfilled and after which the sale will become legally binding.
P.D.: Preliminary Declaration, which may include plans but will give general planning consent, in principle only, and may also give guidelines or restrictions to be considered before detailed plans are submitted.
personalty / meubles: The moveable contents of a property which have been agreed will be included in the sale.
poulage: A Feudal Tax of two chickens, not collected since 1980!
price: The price which can be obtained for your property. Prices for new properties are determined by the value of second hand properties and not vice versa.
quaraintaine: A Feudal Tax of forty eggs, not collected since 1980!
realty / immeubles: The structure of the property.
reinstatement / insurance value: The cost to demolish and rebuild a property in the event of a total loss. This value should include a sum for Architects' and Surveyors' fees, but does not include the value of the land that the building is standing on.
rente(s): Before 1969, the prices for property in Conveyances used to be expressed as the value of a quantity of wheat measured in quarters, bushels, quints and denerels. If the purchaser could not afford the total purchase price, the outstanding amount was paid for in the form of an annual Rente, which had security over the property. Most Rentes have now been redeemed by a payment of 24 times the annual rente.
retrait lignager: A remedy of redemption which allows the descendants (children, grandchildren etc), of a person selling a property to reclaim the property from its new owner within a month of the sale. An ancient law originally to safeguard against the break up of family Estates. Although rarely used, purchasers should be aware of the Law and are generally advised not to carry out major structural work on a property within a month of purchase.
sold: A property is 'sold' when the Conditions of Sale are signed by both parties, a deposit is placed and all of the conditions are fulfilled.
surveyor: Usually a member of the Royal Institute of Chartered Surveyors, who is able to carry out structural surveys and valuations.
under offer: The term used when a bid has been made by a Purchaser and accepted by a Vendor. The property should be immediately withdrawn from the market whilst the appropriate conditions, which may include all or some of the following: survey, finance, licence and property matters, are dealt with. (It does not mean that the property is sold - only that the process of sale has begun.)
usufruct: Right of enjoying the use and advantages of another's property short of destruction or waste of its substance.
vacant possession: To be given by the Vendor on the day of the Conveyance of the property to the new owner with all the goods not included with the sale removed, and the public utilities notified.
valuation survey / home buyer's report: A less detailed survey carried out by a Chartered Surveyor but which should, nevertheless, mention any salient defects or recommendations for further investigation, and which is chiefly concerned with valuation for mortgage purposes.

Please note, these tips and terms are not meant to be exhaustive, merely a general guide to help you find your way through what can be, at times, a confusing process.