Frequently Asked Questions When Buying a Property in Scotland
Confused about some of the aspects of buying a property in Scotland? Here are our most frequently asked questions.
You will be tied in to purchasing once your missives are concluded. Missives are the exchange of formal communications between ourselves and the seller’s solicitors which together form the contract. We will keep you informed and involved throughout this process. We will not conclude your contract unless we know that you the have funds available to purchase the property. If you are obtaining a mortgage, we will not conclude your contract until we have received your offer of loan from your mortgage provider.
No, we sign the missives on your behalf.
When you are purchasing you will not sign any formal deeds unless you are obtaining a mortgage, in which case you will sign a Standard Security in favour of your lender. The Standard Security will be registered in the Land Register on your property’s title. You may also be required to sign a declaration confirming a spouse or civil partner doesn’t have a right over the Property if it is being purchased in your name alone.
Once your offer has been accepted you will not be allowed into the property until missives are concluded. This might be close to the date of entry. It is therefore important you take your time to inspect the property when you view it, it may be your next home.
You should organise home insurance to start on the date of entry. This will be both buildings and contents insurance. This is a requirement when obtaining a mortgage and your title deeds may also require you to obtain home insurance. In modern flatted developments there are often block insurance policies in place, which will insure your property along with the others in the block. When purchasing we will let you know if there is a block insurance policy in place.
You can collect the keys on the date of entry. The keys and a title deed will be received by us on the date of entry in exchange for the purchase price. We will try to settle your transaction as early as possibly in the day, however there can be delays. Closer to the date of entry, we should be able to give you a clearer indication as to when the keys should be available.
The purchase price is payable to the seller’s solicitor on the date of entry. We will do this on your behalf, so we will ask you to transfer the funds to us in advance of this date. If you are a cash purchaser or have a large deposit we would suggest that you check with your bank as to how much you can transfer in one go. You may have a daily limit set by your bank and may need to go into your bank in person or make multiple transfers.
We will keep in touch throughout your purchase regarding the amount payable. At the outset we will provide a quote of fee that details all fees and anticipated outlays. These will also be stated in our Letter of Engagement. If you are obtaining a mortgage, your loan funds will be transferred directly to us. We will provide you with a statement once your offer of loan has been received confirming the amount you need to pay to us, consisting of your deposit plus legal fees and outlays such as the cost of registering your title deeds in the Land Register.
LBTT was introduced in April 2015 to replace Stamp Duty Land Tax in Scotland. The amount payable will depend on the purchase price. Your quote of fee will detail the LBTT payable based on your proposed price. On the date of entry we will submit an LBTT Return to Revenue Scotland on your behalf together with your LBTT payment on the date of entry. We will prepare an LBTT return which we will ask you to review and approve in advance.
You can also use the online calculator at Calculate property transactions | Revenue Scotland to calculate this for you.
There are currently discounts available if you are a first-time buyer. You may also require to pay an Additional Dwelling Supplement if you own other property.
Immediately following the date of entry, we will apply for registration of the Disposition (title deed) in your favour in the Land Register. The registration process can take some time, sometimes even years to complete (for example if you are purchasing a new build property or if the property is being registered for the first time Land Register). If your property is already in the Land Register, the process is often quicker and can take somewhere between weeks or months to complete. Once the Land Register has been updated showing your ownership of the property we will send you a copy, this is now electronic and will be emailed to you.
