A buyer's guide - buying property in Scotland
If you buy a re-sale property in Scotland, these are the main stages you need to go through. To ensure the process goes as smoothly as possible, we recommend the appointment of a Scottish-based solicitor at an early stage.
Note that the process for buying new-build property differs from that for buying re-sale property.
The first steps
If you like a property you have viewed, you can Note Interest with the selling agents. You will then be kept informed of future developments, including the fixing of a closing date. You can also ask the selling agent for a home report for the property.
If you want to note interest in a property, we recommend that you do so via a Scottish solicitor.
Arranging a loan
The choice of mortgage products on the market can be confusing, especially if you are a first-time buyer. If you have any questions about mortgages, you should seek independent financial advice. Be sure the firm you use is authorised and regulated by the UK’s Financial Services Authority (FSA).
There are many schemes on the market, such as shared equity, to make home ownership more accessible.
When budgeting for a property purchase, it is wise to think about the various costs involved. Some items, such as stamp duty, can be significant. A solicitor can advise you on all the different costs you are likely to incur.
The offer
A verbal offer can be agreed by the prospective purchaser and the agent, or by the prospective purchaser’s solicitor and the agent. The usual elements to agree are:
- price
- date of entry
- whether the offer is subject to survey
- any other specific conditions
Once the main principles of the offer are agreed, the prospective purchaser is expected to move swiftly to a written offer. This needs to be drawn up by a solicitor and must follow the correct Scottish legal form.
When there is more than one note of interest, the seller will usually set a closing date - a date by which interested parties must submit an offer in Scottish legal form to the seller’s agent. The seller then decides which offer to accept. Normally the highest offer is successful, but other factors such as date of entry may be taken into consideration. The purchaser’s solicitor will be informed promptly whether their bid has been accepted or not.
Occasionally, you may be asked to pay a deposit. This is not particularly common in Scotland but may be required, for example, if there is a long date of entry. Deposits usually represent 10% of the purchase price (or 5% in new-build purchases).
The final steps
Lawyers on both sides then complete the paperwork, ensure the title is in order, and ‘conclude missives’. This usually takes between ten days and three weeks. At this point in time there is a binding contract on both parties to complete.
