How to buy property in Scotland

What are Missives?

Missives are simply the contract, a series of letters exchanged between the seller and the purchaser’s solicitor. Basically, Missives are used between solicitors to ensure that both parties (the buyer and the seller) have a complete understanding of the contract and the legal implications of the purchase or sale.

What does it mean by “offers over”?

This simply means the seller is looking for an offer in excess of the ‘offers over’ price. This does not necessarily mean that a buyer has to offer more than the ‘offers over’ price. Some sellers will not achieve any offers above the ‘offers over’ price and some sellers may achieve a sale price significantly higher than the ‘offers over’ price.

The price achieved for a property normally depends upon market conditions or how motivated a seller is to sell, or a buyer is to buy.

Why is the ‘offers over’ price normally advertised lower than the Home Report value?

This marketing strategy is used by Agents to try and get more interest in the property and to create competitive bidding for the property. Buyers can be attracted to property marketed below their budget but will rule out properties that are marketed above their budget.

What does Fixed Price mean?

This means if you offer the fixed price with no onerous conditions attached to your offer the seller is obliged to accept your offer once you submit your formal written offer through your solicitor.

How do I make an offer for a property in Scotland?

There is nothing stopping a buyer from making a verbal offer to the seller or the seller’s Agent and agreeing on a price of the property with the seller. However, the Agent or the Solicitor of the seller will expect to see a buyer follow up any agreed offer with a formal written offer from a solicitor to allow them to review all conditions in the offer before formally accepting a buyer’s offer.

What does it mean by ‘Note of Interest’?

A Note of Interest simply means a buyer is seriously interested in finding out more about the property and is likely to make an offer on the property when and if any closing date is set by the seller. A property may receive multiple Notes of Interests which means a buyer is likely to be competing with many other buyers at a closing date for the property. A Note of Interest is normally submitted by the buyer’s Solicitor to the seller’s Agent or Solicitor.

Can I still bid at a closing date if I have not submitted a note of interest?

Yes, you can still make an offer, but the seller’s Agent or Solicitor won’t normally advise you of the actual closing date unless you have submitted a Note of Interest.

Does the seller have to accept the highest offer at a closing date?

No. The seller can choose any offer that is best suited to them and can even make a decision on which buyer they would like most to buy their property regardless of price offered.

What do I have to provide in my offer?

• The name of Purchaser(s);
• Your preferred entry date or state in your offer that this is negotiable;
• The price you want to pay;
• Any items you might want to be left with the property ;
• Any conditions that you may wish to apply to your offer for example if your offer is “subject to sale” or mortgage funding; and
• You will probably be asked by the seller’s Agent or Solicitor your position that is if you have funding in place and if you are chain free if your offer is silent on your position.

What are the Scottish Standard clauses?

The Scottish Standard clauses are designed to represent a Scottish wide approach for use in residential conveyancing transactions which is industry accepted as reasonable. They are designed to be adopted throughout Scotland as a uniformed set of conditions and are intended to promote the swift conclusion of missives. The clauses represent a compromise between the competing interests of sellers and Purchasers. Additional conditions can always be added to the standard clauses in any transactions where the Standard clauses do not cover the buyer’s or seller’s requirements for the sale or purchase.

What happens if I move into the property and find a defect in the property?

You have 5 days to make a claim against the seller if the defect has not previously been disclosed by the seller. You will only have a claim if the defect is above £400.

Should I engage with a solicitor before looking properties?

Yes, it is best to have your appointed legal advisors in place before you start looking for properties. This means, if you see a property you like and want to make an early offer you can do this simply and quickly by calling your solicitors, and instructing them to make an offer or to submit a Note of Interest on the property.