BUYING PROPERTY IN SCOTLAND

When considering buying property in Scotland, the following are important points to remember.  If you have any further queries please do not hesitate to contact a member of our staff.

• The Scottish legal system is distinct from the English legal system and when you purchase a house in Scotland a Scottish solicitor must be appointed.

• The first step, after the initial viewing, is to note interest with the selling agent through your solicitor. Noting interest merely means that the house cannot be offered to any other party without reference to yourself but in no way commits you to anything further at this stage.

• A closing date may well be set and offers invited from all interested parties.  The 'Offers Over' figure should be regarded merely as a guide price with the expectation of between a 10% and 20% premium in a competitive situation.  The closing date allows each interested party to submit their best offer. Within the offer you must include your preferred 'date of entry', when the money is paid over and you take possession.  Most offers are now submitted 'subject to survey' and the selling agents will be anxious that this is carried out at the first opportunity following the closing date. Except in exceptional circumstances there is no deposit payable prior to entry. Normally the highest offer will be successful although it is the owner's decision as to which, if any, is acceptable, and other factors such as the entry date will be taken into consideration.  Your lawyer will be informed promptly, whether you have been successful or not.

• It will take about a week to ten days for the lawyers on both sides to complete the paperwork, make sure the title is in order and 'conclude missives'.  Only at that time is there a binding contract from which the purchaser may not resile.

• Immediately prior to registering the title document, known as the Disposition, any stamp duty on the purchase price must be paid to the Inland Revenue.  The current threshhold is £120,000.  Above this the stamp duty is as follows :

125,000 - £250,000	1%
£250,000 - £500,000	3%
£500,000 upwards	4%

• In some cases it may be possible to side-step the closing date situation altogether and submit an early offer, but this can only be done if there are no other notes of interest or surveys.  The offer would need to be substantially higher than the asking price, and certainly as good as, or better than, expected at a competitive closing date.