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In Scotland, the conveyancing process differs greatly to that in the rest of the UK. As soon as the seller has accepted a written offer on a property, it is legally binding. This is not the case in England, where a buyer can be gazumped at the last minute. Anyone looking for a house in Scotland should employ a solicitor.
Noting interest
Once you have found a suitable property you should immediately formally note your interest in the property. This is usually done by your solicitor. Once you have formally noted your interest the seller should not then sell that property to anyone else without first giving you the chance to offer for it.
Kinds of offer
When a house goes on sale in Scotland, it is usually offered on a “fixed price” or “offers over” basis. With a fixed price sale, the owner will accept the first offer made at the previously stated price. With an offers over sale, you can make an offer at or above the stated price. If the seller expects several offers they may set a closing date, before which they can choose to accept any of the offers.
Survey
Once your interest has been noted you should then arrange a survey and valuation on the property in anticipation of making an offer at the closing date. It is possible to make an offer conditional on survey but this is not recommended as it will make your offer unattractive to the seller.
Property checks
A system of feudal tenure exists in Scotland, in which the seller has the power to impose permanent restrictions on the future use and development of the property and the land. You must check any property you wish to buy for such restrictions. If you intend to buy, contact your solicitor and arrange for a property survey.
Your mortgage lender will insist on a property survey before approving your mortgage.
Making an offer
Assuming the survey and valuation are OK and your lender is happy to give you a mortgage you should find out whether or not a quick offer would be acceptable or whether you will have to wait for the closing date to be set. You must then decide how much to offer - and what is included in the price. The offer - which should be made in writing - should stipulate certain conditions, such as the day you move in and the day the seller moves out, as well as any miscellaneous details such as what happens to carpets or curtains. Normally, acceptance or rejection of the offer will be phoned through on the closing date. It should also be noted that in a competitive situation the seller is not obliged to accept the highest offer.
Qualified Acceptance
Assuming your offer is acceptable the seller's solicitor will issue a Qualified Acceptance and send your solicitor all the necessary papers relating to the property. Your solicitor will then check these, including the titles to the property and raise any queries arising. Please note that at this stage there is no legally binding contract between buyer and seller and either may drop out at any point - although this rarely happens.
Once the written negotiations (known as missives) have been completed, your solicitor will arrange for further checks on the property, including a Local Authority search.
Contract
Following your solicitors's examination of all the documents he will provide a report to you with recommendations. Finally, once the conditions of sale have been agreed upon, the contract is drawn up. At this stage both parties are now bound by the terms of the contract - made up of the Offer, the Qualified Acceptance and subsequent formal letters.
Between the conclusion of the contract and the settlement Date your solicitor will compeete all necessary conveyancing formalities - including liasing with the mortgage provider.
Settlement
In anticipation of settlement your solicitor will issue you with a State of Settlement - which outlines all the money you will need to pay out at settlement. Cleared funds will need to be in the hands of your solicitor in advance of settlement - both from you and from the mortgage company as appropriate. This will include the purchase price, stamp duty and registration dues on the title.
You are also required to sign a standard security, the deed securing the loan on your property. On the entry date, the buyer sends a cheque in exchange for the deeds to the property, the disposition and the keys. The buyer must also pay stamp duty and register the disposition and the standard security with the Land Register or Register of Sasines.
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