Scotland has more than just castles and lochs – it even has its own legal system. For this reason, the property buying process north of the border is different from that found in the rest of the UK. We all know buying a home can be a little daunting – especially if you don’t understand the system. That’s why we asked the finance experts at www.debts.org for a step by step guide to buying property in Scotland.
Step 1: The viewing
You’ve had a look at more properties than you care to remember but have finally found one you’d like to call ‘home’. So what’s next? Debts.org says, “At this point you must officially declare an interest in the property with your solicitor. This is known as a ‘note of interest’. While it does not tie you to the property, a note of interest means you must be informed if the property is sold to another buyer.”
Step 2: The closing date
The seller will specify a date by which all offers must be submitted – known as ‘the closing date’. You and any other interested parties will submit offers based on how much you think the property is worth. Your bid must exceed the ‘offers over’ amount – ask your solicitor for the ‘offers over’ figure. The seller will not accept offers below this amount.
Debts.org, adds “If there is serious competition for the property, you must be prepared to exceed the ‘offers over’ figure by as much as 10% or 25%. Always resisit the temptation to stretch your budget beyond what you can afford – it pays to be prudent.”
For impartial mortgage advice, visit http://www.debts.org/mortgages
Step 3: Date of entry
When you submit your offer in time for the closing date, you must state when you would like to move into the property. Sometimes this has a bearing on which offer the seller accepts but this is rare – money usually has the final say.
Step 4: Submit offers
All offers received by the seller will be subject to survey. The seller’s agents will arrange for a survey to be completed on the property after the closing date.
Assuming the survey is in accord with the property’s value, your solicitor will inform you if your bid has been accepted or not. If your bid has been turned down, better luck next time. If on the otherhand you have somewhere new to call ‘home’ – see the next step.
Step 5: Missives
Your offer has been accepted, congratulations! Before you arrange the moving in party, however, there is still the important matter of ‘missives’. Your solicitor will exchange paperwork with the seller’s representatives to finalise the terms of the sale – also known as ‘concluding missives’.
A contract is only enforced once missives have been concluded.
Step 6: Stamp duty
Stamp duty must be paid to the Inland Revenue via your solicitor. Not all properties have stamp duty so it is a good idea to check with your solicitor at the outset. For information on stamp duty, visit http://www.debts.org/what_is_stamp_duty
Step 7: Examining title deeds
Your solicitor will be sent the title deeds of the property once paperwork has been exchanged and all parties are satisfied with the terms of agreement. Your solicitor will examine your new home’s background to ensure there are no securities made against the property or planning proposals.
Step 8: Other documentation
After examination of the titles, your solicitor will prepare the Disposition. The Disposition transfers the title of the property from the seller to the buyer.
The Disposition establishes:
· parties
· price
· entry date
· description of property
For more information on the Disposition and what it entails, visit http://www.debts.org/buying_property_in_scotland
Step 9: Settlement
The settlement is when you pay your solicitor the money for the property in exchange for the keys. Welcome home!
For more information on this, UK mortgages or any other area of personal finance, visit www.debts.org. Debts.org is getting consumers a better deal.
