Understanding the Conveyancing Process in Scotland: A Step-by-Step Overview

Understanding the Conveyancing Process in Scotland: A Step-by-Step Overview

Buying or selling a property is one of the most significant financial transactions most people will ever make. The process of transferring property ownership is known as conveyancing, and in Scotland, it follows a distinct legal framework. This guide is designed to explain the process step by step in as simple a way as possible to help you understand what to expect.

Step 1: Instructing a Solicitor

The first step in any property transaction is to instruct a solicitor. In Scotland, only a solicitor can carry out conveyancing work. Your solicitor will:

• Provide legal advice on the transaction
• Carry out necessary checks on the titles to property
• Handle and complete the legal paperwork involved with the transaction including registration of the property.
• Ensure the transaction completes as smoothly as possible.

Step 2: Noting Interest

If you are a buyer and find a property you are interested in, your solicitor can “note interest” with the seller’s solicitor or most likely the sellers’ estate agent. This does not create a binding obligation but should ensure you are kept informed of matters concerning the property, especially if there is significant interest from other buyers which will potentially lead to a closing date, a date and time when all interested parties should have their best offers submitted and the sellers will review these with the intention of potentially accepting an offer.

Step 3: Obtaining the Home Report

In Scotland, the seller must provide a Home Report before putting a property on the open market. This is not required for private sales where the property will not be placed on the open market. This report consists of three key documents:

• Single Survey – Assesses the condition and value of the property, providing the surveyors comments to the solicitor/conveyancer overseeing the purchase with details on alterations, treatment works and maintenance obligations amongst other factors.
• Energy Performance Certificate (EPC) – Shows the property’s energy efficiency and provides an energy rating for the property.
• Property Questionnaire – Provides details about the property, such as council tax band and any alterations. This information is provided by the home owner or their representative.

Step 4: Making an Offer

If you decide to proceed, your solicitor will submit a formal written offer to the seller’s solicitor. The offer typically includes:

• The price you are willing to pay
• Proposed date of entry
• Any specific conditions attached to the offer (subject to mortgage/sale of existing property)

Step 5: The Missives (Contract Negotiation)

Missives are the exchange of formal letters between solicitors for the buyer and seller that form the terms of the legal contract. The process involves:

• The buyer’s solicitor making an initial offer
• The seller’s solicitor issuing a “qualified acceptance” with any conditions the seller may wish to add.
• The buyer’s solicitor reviewing and negotiating terms
• Both parties agreeing on all terms before concluding the missives

Only once missives are concluded, is there a legally binding contract in place, meaning neither party can withdraw. Failure to then uphold such a contract will result in the defaulting party facing legal consequences.

Step 6: Conveyancing Searches and Checks

Before settlement, your solicitor will carry out essential checks, including:

• Title Examination – Ensuring the seller has legal ownership and the right to sell and ensuring all aspects of the title meet the needs of the purchaser.
• Property Searches – Checking the latest version of the titles and searching against the parties to the transaction to ensure there are no issues in either contracted for property, checking for outstanding debts, title restrictions, or legal issues that may impact the purchasers’ intentions with the property.

 Step 7: Mortgage Arrangements (If Applicable)

If you are buying with a mortgage, your lender will issue a formal mortgage offer. Your solicitor will:

• Check the mortgage terms
• Arrange for the loan funds to be available for settlement
• Ensure lender requirements are met

Step 8: Settlement and Completion

On the agreed settlement date:

• The buyer’s solicitor transfers the purchase price to the seller’s solicitor
• The seller’s solicitor provides the signed title deeds and keys are handed over
• The buyer’s solicitor registers the new ownership with the Land Register of Scotland
• Land and Buildings Transaction Tax (LBTT) – The Purchasers solicitor shall ensure the correct tax is paid (applicable to buyers)

 Step 9: Post-Settlement Matters

After settlement, your solicitor will:

• Submit the LBTT return to Revenue Scotland and pay any outstanding tax
• Register the title in the Land Register of Scotland held by the Registers of Scotland

 Practical Tips 

• Choosing a Solicitor: Look for an experienced solicitor with transparent fees.
• Dealing with Lenders: Get a mortgage offer in principle before making an offer on a property.
• Handling Negotiations: Be flexible but firm on key terms such as price and date of entry.

By understanding the Scottish conveyancing process, you can approach your property transaction with confidence and avoid unnecessary stress. If you are buying or selling, engaging a knowledgeable solicitor early on will help ensure a smooth experience.

If you have any questions related to buying or selling a property and you are looking for some help or advice, 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.