Buying a house in Scotland
Buying a house in Scotland is slightly different than buying a home in the UK.
The process of house-buying in Scotland
In Scotland at the outset of the transaction, both buyer and seller enter into a formal contract following the exchange of letters between their solicitors, a process known as missives.
On conclusion of missives, a binding contract exists, from which neither buyer or seller can withdraw without incurring a penalty. Potentially, the penalty could run into thousands of pounds.
A completion date known as 'date of entry' will be agreed by both buyer and seller which allows all parties concerned to work towards a final date and minimises the need to arrange bridging finance.
The House Offer Price
The most widely used price tag is 'offers over', where by the seller hopes to achieve a final price in excess of the quoted figure. Depending on the desirability of the property, the selling price tends to be one and ten per cent more than the asking price. In a buoyant market, this difference can be even more marked.
There is also a fixed-price option, whereby the seller indicates they will accept the first offer for the exact figure.
It is worth noting, however, that the seller is not obliged to accept the highest, or indeed, any offer.
The Closing Date
If more than one buyer is interested in purchasing a property, the seller's solicitor will usually set a closing date by which the seller wishes all interested parties to submit their offers.
Role of the Solicitor in buying a house in Scotland
Buyer and sellers must use a solicitor or authorised practitioner qualified in Scottish law. Any buyer interested in a particular property must advise a solicitor, who will note their interest with the seller's solicitor. This ensures that the property will not be sold without the potential buyer having an opportunity to make an offer.
Potential buyers of property in Scotland commission the survey or valuation prior to making an offer. If the buyer decides to make an offer subject to survey or subject to contract it may jeopardise the chances of the offer being accepted, particularly if a closing date is set. At the closing date, the seller will decide which offer to settle upon, in consultation with his or her solicitor. The solicitor will then verbally indicate to the successful buyer's solicitor that the offer has been accepted. At this stage it is verbal acceptance only and is not legally binding. The seller's solicitor will then provide the buyer's solicitor with a qualified acceptance once a positive response has been received.
This is the beginning of the missives, the exchange of formal letters between both parties' solicitors stipulating price, date of entry, items included in sale, and a number of additional legal conditions.
After the missives have been concluded, there is a legally binding contract on both parties. Buyers in Scotland does not have to provide a deposit.
The Entry Date
This is the date of completion: at this time, the buyer is free to collect the keys to the new home from the estate agent.