Essential Legal Checks When Purchasing a Property in Scotland
Purchasing a property is an exciting milestone, but it also involves a range of important legal checks to ensure the process runs as smoothly as possible and with minimal issues, if there are any issues at all. As a buyer in Scotland, it’s essential to be aware of the key legal considerations involved in the property purchase process as the very doctrine of buying a property is “buyer beware”. Here’s a brief guide to the most crucial legal checks when buying a property in Scotland.
Title Deeds
One of the first and most important checks involves the property’s title deeds. These documents prove details of the seller’s ownership of the property, and any legal rights associated with its known burdens or servitudes. A solicitor will examine the title to make sure:
– The seller is the rightful owner and confirm the existence of any mortgage or loans secured over the property
– There are adequate rights of access to the property
– The boundaries on the deeds match the physical boundaries of the property.
– There are no unduly onerous burdens or servitudes affecting the property
Searches
The Sellers solicitor’s will carry out and provide to your solicitor standard searches over the property, including:
– The Legal Report which checks the against the title to give the most up to position on the ownership of the property and any deeds registered against it. In addition to this is also searches against the parties to the transaction for issues with insolvency or inhibitions that prohibit the sale of the property
– The Property Enquiry Certificate, this checks into the local area and highlights things like the property being subject to any notices, planning or building standards matters. It also confirms whether the road and footpaths are adopted for maintenance purposes by the local authority, and it also confirms if the property is connected to mains water and drainage/sewage.
– The Coal Authority subsidence report, this is required for all properties which are situated in an ex-mining area (the vast majority of the central belt in Scotland). The report carries out an assessment of the location of any disused mine shafts within the vicinity of the property and provides details of any potential issues with subsidence affecting the property
These searches will reveal whether there are any outstanding issues with the property’s legal status, including potential disputes over boundaries, ownership claims, or missing paperwork.
Plans and Boundaries
An accurate understanding of the property’s boundaries is crucial to avoid future disputes with neighbours. Your solicitor will check that the boundaries shown on the title deeds correspond to the physical boundaries on-site. They will provide you with a copy of the title plan to ensure this matches your expectations of what you intend to purchase. If there are any discrepancies, these should be resolved before completion to avoid future complications or disputes.
Environmental Checks
Depending on the location of the property it may be prudent/ required to undertake checks on Environmental issues such as contamination, flood risks, or historical land use (e.g., mining activity) which can affect the property. While not mandatory, many buyers request an environmental search to check for any issues that could affect their safety or the future value of the property.
Title Conditions and Burdens
In Scotland, many properties are subject to “title conditions” or “burdens”. These are legal obligations or restrictions that the property owner must adhere to, such as maintaining a shared driveway or restrictions on building extensions. Your solicitor will review any conditions or burdens attached to the title to ensure you are aware of them and that these do not affect your intended use of the property.
Property Valuation and Survey
While not strictly a legal check, arranging a valuation and survey is crucial to avoid paying over the odds or buying a property with hidden defects. In Scotland, the seller typically provides a “Home Report”, which includes a valuation, property condition survey, and an energy performance certificate. Your solicitor will ensure that the Home Report is current and that its findings do not raise any concerns. You should familiarise yourself with this document and highlight any concerns you may have to your appointed solicitor.
Missives and Contract
In Scotland, the purchase process involves the exchanging of a series of formal letters between your solicitor and the seller’s solicitor, known as “missives”. These letters form the legal contract of sale. Once missives are concluded, the contract becomes legally binding on both parties. Your solicitor will ensure the missives reflect your needs, including any conditions you wish to attach to the sale, such as repairs or specific move-in dates.
Mortgage and Loan Documentation
If you are financing the property through a mortgage, your solicitor will liaise with your lender to ensure that the mortgage documents are correctly prepared. This includes checking that the loan amount and purchase price are correctly recorded, and that the lender’s interest is noted on the title deed through the registration of a standard security.
Settlement and Completion
On the day of settlement, your solicitor will check again the legal position on the date, with an updated legal report to ensure nothing has altered since the last report was received and also the location of the keys for you to collect once settlement has taken place.
Conclusion
Purchasing a property in Scotland is a detailed process involving several important legal checks. Working with a qualified solicitor ensures that each step is handled professionally, reducing the risk of legal issues arising in the future. These checks protect your investment and provide peace of mind, allowing you to enjoy your new property with confidence.
If you have any questions or need advice on purchasing a property, please contact our experienced Residential Conveyancing Team on 01324 622 888 or contact help@randa-fa.co.uk and we would be delighted to assist.
