Buying and Selling in Scotland

 

by
David Alves

LOCAL first-time buyers - and anyone coming into Scotland to purchase a property for the first time - will be relieved to find that the process is relatively straightforward and efficient.

Buying
    Properties in Scotland are offered for sale either by inviting “offers over” a stated figure (the “upset” price) or (much more straightforward) at a “fixed price”.

    In any event you have to get your mortgage or loan agreed in principle in advance of looking for your new home.  Your estate agent can refer you to a specialist independent financial adviser who will find you the most suitable lender.

Properties advertised as “offers over”
    If you’re interested in buying an “Offers Over” property, the procedure is firstly to “record an interest”, in other words tell the selling agent you are a potential buyer.  As soon as enough prospective purchasers have registered their interest, the selling agent will set a closing date.  This is the day and time by which offers have to be submitted. Very shortly afterwards (often the same day) you’ll be told whether or not your offer has been successful. 

    Your offer, as well as the purchase price, will define any contents e.g. kitchen appliances, carpets, curtains, light fittings etc, which you want to be included in the sale.  It will also state the date of entry (the date upon which you are expected to pay for it in full).

Properties offered at a fixed price
    Offering for a“fixed price” property– is exceptionally simple, as the first offer submitted normally secures the sale.  Sometimes, if the date of entry is too far ahead, the seller’s agent may ask you to bring it forward.

    Most offers nowadays are submitted “subject to survey”(or “subject to satisfactory survey”).You will be expected to instruct the survey immediately you hear your offer has been successful.

    Assuming that there are only minor reservations about the price or condition of the building in the survey you can go ahead.  If the surveyor draws your attention to anything significant you can negotiate with the seller over the price.

    Surveys will either be Scheme 1 – a basic valuation report guaranteeing price only to a lender, or Scheme 2 - a much more detailed report into the conditions of the building.  To save duplicate expense check with your lender to confirm that the surveying firm you are about to instruct is on their valuation panel.

    Sometimes your surveyor will ask for a “specialist report” from a structural engineer or a timber or damp proof specialist if he or she anticipates trouble in either area.

    Some time ago it was the practice for every prospective buyer to instruct a survey before they submitted their offer. This led to many unsuccessful purchasers wasting a lot of money.  Thanks to the “subject to survey” system, this is now very largely a thing of the past.

    Unfortunately, the Scottish Executive doesn’t seem to be ‘au fait’ with current practice and are intending to introduce a “seller survey” in 2008 or 2009. The result of this is that the seller will have to commission a Scheme 2 survey at a cost of a few hundred pounds which they will need to give all prospective purchasers.

    The “subject to survey” system means that the seller survey is now redundant. Trials which the Executive carried out were ignored by an unenthusiastic public who seem to prefer to exercise their own choice of independent surveyor.

    European Union legislation decrees that from 2008 every property sold will have to have an expert evaluation of its energy efficiency.

    Whether or not this is really necessary I leave buyers to judge. But it seems to me only commonsense that period properties will not be very well insulated (except those with subsequent work completed in the roof space). Newer properties - or those with cavity wall and other later applied insulation - will perform better.

    It’s interesting that the whole business of introducing HIPS (Housing Information Packs) with much of this information and some relating to Planning Permissions, Building Warrants and Completion Certificates, has been abandoned for England and Wales. It was dreamt up as an attempt to speed up the long delays of finalising sales south of the Border. One wonders why much the same system is being advocated for a very uncommon Scottish problem, where the whole system of buying and selling is more straightforward.

    Once your offer has been accepted, first of all verbally then in writing, the two sets of solicitors (acting for the seller and the buyer) will “conclude the missives” e.g. finalise the legal contract for the sale to take place.

 

   

After all this you pay the purchase price, move into your chosen home and hopefully live happily ever after...

Selling
    Selling a home in Scotlandis a fairly simple process as long as you take step-by-step guidance from the professionals.

    First of all you need to know what your home is worth.

    Your estate agent will be happy to call and advise on this and the best way of marketing it – usually without charge or obligation. 

    Will it be better to invite “offers over” or to set a “fixed price”? To decide this you need expert advice. In the present market there is a general shortage of property for sale and too many buyers, so fixed prices aren’t as common as they were last year.

    Your estate agent will check the figures which have been achieved recently for similar properties in the area and advise you where to pitch the price.

    At this point you ought to consider if there are any improvements you could make in presenting your property which would help you achieve a quicker sale at a better price.

    To begin with you will be given a written estimate of all the expected fees and outlays in your move, including Stamp Duty and legal fees.      The estate agent will prepare an illustrated sales brochure for your approval, put up a ‘For Sale” sign if you want one (very cost effective) and advise you on the right mix of Internet and/or press advertising.

   Occasionally, agents can find a purchaser privately for people who prefer their business affairs to be confidential (although the price achieved subsequently becomes common knowledge through the public records).

    The sales process is the same as I described in the previous purchaser section and your estate agent will assist you until you achieve a successful sale is achieved.

David Alves can be contacted at Sturrock Armstrong & Thomson on 0131 556 0159.