Navigating the legal maze to buying and selling in Scotland

When it comes to buying or selling property in Scotland, understanding the legal processes involved is helpful for a smooth and stress free transaction. If you are new to buying or selling, or you are moving to Scotland from England and are used to a different legal system, then the process may seem complex.

Here we shed some light on the Scottish legal process and offer insights and advice to help both buyers and sellers comprehend the legalities and the terminology.

• Note of interest: In a Scottish property transaction, the process starts with the buyer submitting a note of interest in the new property. A note of interest is not legally binding, but it gives you time to arrange finance before putting in an offer to purchase. Often the seller’s estate agent will wait until several buyers have noted their interest before setting a closing date when all interested parties will be invited to send in their offers.
• Survey and Home Report: In Scotland, sellers are required to provide a Home Report to potential buyers. This report includes a Single Survey, an Energy Performance Certificate, and a Property Questionnaire. Buyers should carefully review this report to understand the property’s condition and history.
• Offer: The offer to purchase is then a formal offer that specifies the price you are willing to pay and any other conditions attached to the sale. Your lawyer will carry out the whole negotiation process for you and submit a formal offer on your behalf.
• Acceptance and missives: Once the seller receives an offer, negotiations may begin. The exchange of formal letters (missives) between the buyer and seller’s solicitors is how these negotiations take place. They discuss and agree on the conditions of the sale, such as the date of entry, the fixtures and fittings included, and any special conditions.
• Conveyancing process: The conveyancing process is the legal transfer of property ownership. It involves various steps, including property searches, title checks, and ensuring all legal obligations are met. The buyer’s solicitor carries out these tasks to ensure that the property is legally sound and that there are no undisclosed issues that might affect the sale.
• Mortgage and finance: Remember that if you need to obtain a mortgage on the property, you will need to secure mortgage financing as early as possible during this process. Lenders will assess the property’s value and the buyer’s financial situation. Having a solicitor experienced in property transactions can help streamline this aspect of the process.
• Completion: The final step is to register the property with the Land Register of Scotland. This ensures the property is legally recognised as belonging to the new owner. On the agreed date, your solicitor will transfer the purchase price to the seller’s solicitor, in exchange for the title deeds and keys to the property and arrange to have the property registered in your name.

Whether you are buying or selling, at McDougall McQueen, we’re here to provide the expertise, support, and guidance needed to ensure a successful property transaction.