The Buying Process

Surveys

Before making an offer you must have a valuation or survey done (and have the necessary finance), as once your offer in writing is accepted it's legally binding. This means, however, that you will end up losing money on the survey costs if your offer is not accepted. This has prompted a proposed change in the law where the seller is responsible for having a survey carried out before selling a property.

There are no licensed conveyancers in Scotland. Because solicitors do all the conveyancing and are so involved in the process then they will usually arrange surveys.

Making an Offer

Most property is advertised as 'offers above a certain price', for example, offers above £100,000, which is called the 'upset' price. These asking prices may be set low to attract potential buyers, and the actual selling price is usually about 5-30% higher. As a result, it can be difficult to know where to pitch an offer as you don't want to lose a property for the sake of a few hundred or thousand pounds, but on the other hand, you don't want to offer over the odds. You should discuss any offer with your solicitor and try pitching it slightly above a round figure, e.g. £210,150 rather than £210,000.

Properties may also be offered at a fixed price, where the first reasonable offer is accepted. If there is a closing date for offers, all interested parties must make sealed bids, which are opened on that date - the vendor normally accepting the highest bid. They can, however, reject all offers, although this rarely happens.

When you've found a property you wish to buy your solicitor will contact the vendor's solicitor by word of mouth and register your interest. This does not have any legal standing and either party may pull out.

Once the vendor's solicitor has had sufficient interest, he will usually fix a closing date by which time all offers must be submitted in writing. Your formal offer will come by letter, through solicitor, and will include any items such as fixtures and fittings. The letter forms part of the contract of sale.

It's virtually impossible to be gazumped in Scotland, as once an offer in writing has been accepted it's legally binding and you cannot pull out. This is why it's vital that you have a valuation or survey done (and have the necessary finance) before making an offer.

Exchange of Missives

If the offer is accepted, a formal letter called 'qualified acceptance' is returned by the vendor's solicitor, confirming or amending the conditions. These formal letters are referred to as missives and may go back and forth for clarification. A formal moving in date is set which makes it easier to co-ordinate a sale and purchase, and removes some of the problems of being in a chain.

Missives Concluded

Once all the conditions are agreed, the purchase is then legally binding for both buyer and seller. There is no deposit paid in the Scottish system except if you are buying a new house from a property developer.

Once an offer has been accepted and the missives (contracts) concluded, you're responsible for insuring the property, although it is often usual for an agreement to be made in the missives that the vendor remains liable until the date of entry.

Searches

Immediately prior to exchanging missives a search on the property and against the individual is made. This checks that the vendor has a good title to the property and that you can grant security for the loan. A local authority search is also carried out to ensure that there are no proposed developments that would affect the property. Your solicitor will then initiate proceedings towards settlement (completion), which is usually four to five weeks after acceptance of an offer.

Completion

On completion day, settlement takes place whereby the solicitors acting for the two parties meet and exchange a cheque for the keys. After completion, you pay your solicitor's fees, stamp duty and registration fees for the disposition (the legal document that transfers ownership), which is registered with the General Register of Sasines or the Land Register of Scotland.