Buying a property in Scotland
You may be aware that the legal process for buying property in Scotland is different from the English system. At the heart of the process, there is still a legally binding contract between the purchaser and seller, but this is carried out in a way that may not be familiar to you if you have not purchased a property in Scotland before.
The Contract
The contract itself will take the form of letters called 'Missive letters' that are exchanged between the purchaser's and seller's solicitors. You should always be consulted by your solicitor about these Missive Letters, but will not actually sign them, this will be done on your behalf by your Solicitor.
The Date of Entry
The contract comprised in the Missive letters will be tied up at an earlier date than under the English system, and will include a definite date when the price will have to be paid and the keys handed over - this is known as 'The Date of Entry'. After the contract is tied up, the Date of Entry can only be amended with agreement of both purchaser and seller.
Preparing to Make an Offer
Because the contract is likely to be tied up and legally binding on purchaser and seller quickly, it is important to have your finance organised before you offer. This means having an Offer in principle from your lender if you are taking on a mortgage, or having bridging finance lined up if your purchase is tied to the sale of the other property.
Making an offer
When you have decided that you want to make a bid for a property, you should ask your solicitor to submit a Note of Interest on your behalf to the selling agents. It may be possible at this stage to simply make an offer through your Solicitor and if the price you are prepared to offer is acceptable to the seller, to move on immediately down the route of tying up the deal. Alternatively, the seller may decide to fix a Closing Date is there is a lot of interest, and your solicitor would then submit your offer on the actual day of the Closing Date. Your offer would then be considered along with other offers submitted on the Closing Date, with the seller most likely to choose the highest offer.
Home Report
Most properties marketed for sale in Scotland now require a Home Report. This comprises a Single Survey, an Energy Report and a Property Questionnaire. The Single Survey provides detailed information relating to the condition of the property and notes any repairs that may be required. It gives an opinion on the market value of the property and an estimated reinstatement cost for insurance purposes. An accessibility audit is included giving practical information especially useful to elderly or disabled persons. The Energy Report provides the property’s energy efficiency rating and the higher the rating the more energy efficient the property is and the lower the fuel bills are likely to be. It gives the environmental impact rating based on carbon dioxide emissions. The higher the rating the less impact it has on the environment. Recommendations are usually made on how carbon emissions may be reduced and savings made on fuel bills. The Property Questionnaire is completed by the Seller and gives information such as council tax band, parking facilities, factoring arrangements, any local authority notices that affect the property and any alterations that have been made. The Single Survey and Energy Report are carried out by a qualified Surveyor and No.1 Ladies Estate Agency can arrange for this to be done on the Seller’s behalf. It is the Seller’s responsibility to provide and pay for the Home Report but the Seller may choose to defer payment until the property is sold. See examples of the single survey, energy report and property questionnaire. Further information is available from the Scottish Government’s website Click here « .
The No 1. Ladies' Estate Agency® is part of the law firm of Marjory MacDonald, Solicitors, Bankhead, Arbirlot, Arbroath, Angus DD11 2NS
