Users' guide to selling in Scotland

It’s your move . . .

INTRODUCTION

For most people, buying or selling their home is the biggest financial transaction that they will make. Too often happening at a time when there are plenty of other things to cause stress! So naturally you want your sale to go as smoothly as possible. This is where we come in…

WHAT YOU CAN EXPECT FROM US -

Agreeing the terms and conditions of the deal are now more complex than ever. If something goes wrong, it could cost you a lot of money, or even your house, so it is important that you get sound legal advice before you commit yourself.

Conveyancing is the legal side of a house sale or purchase.

ESTATE AGENCY

We offer a most reasonable rate of commission.  This helps you to budget for your sale.  Of course, press advertisements are charged for extra, at cost.

We can provide you with a free estimate including:

VAT (Charged at the current rate of 17.5%)

RECORDING DUES

Official charges for recording the Discharge of any secured loans - mortgages - you have over your property.

OTHER POSSIBLE OUTLAYS

These are more usual with a sale, and it is difficult to predict exactly what might be incurred - but you will be kept informed.

MORTGAGE REDEMPTION PENALTY

Some lenders charge this fee especially where a 'special deal' was offered when you took out your mortgage. Some lenders let you off with a fee if you take out a new mortgage with them.

NEGATIVE EQUITY

This is fairly rare in Scotland, especially at the moment, but if you bought recently, especially with a 100% mortgage and if fees, mortgage guarantee premium, or other extras were added to your loan, it may happen.  We try to get a 'redemption figure' from the lender when we are asked to sell a property, just in case there might be a problem.

WARNING ! !

NOT READING THIS MAY SERIOUSLY DAMAGE YOUR WEALTH ! !

If you buy before you sell be prepared to take out a bridging loan. (There will always be an arrangement fee and repayments may be high.) If you sell before you buy be prepared to check into a hotel (or squat on a friend’s floor.) So consider, buying or selling first, each has its risks. Ending up with two properties and a bridging loan, or no property. But do not let this put you off, it is a common hurdle which need not be detrimental to your health.

It’s your choice…

NEGOTIATING A DEAL

These days, not all properties go to a 'closing date' - if there are no other notes of interest, we may be able to negotiate a deal for you.

ALTERATIONS AND EXTENSIONS

May cause problems. If you know that the property has been altered or extended, inform us when we put it on the market. We will need to check whether planning permission, superior’s consent and/or a building warrant were required and, if so, whether they were obtained and whether a Completion Certificate was issued when the work was finished. If the permissions are not in order, we will try to obtain them for you.  This can take a while and incur extra charges.  The earlier we know, the less the charges are likely to be.

RECEIVING AN OFFER

We will advise you on the terms of the offer. Offers are long and complex legal documents designed to protect you and it is vital to get them right first time. A solicitor’s experience is vital here! This is the crucial part, as acceptance of an offer creates a legally binding contract.

ACCEPTANCE OF YOUR OFFER

If you decide to accept an offer, we will send the purchaser’s solicitor a formal letter, which will include conditions which will attempt to modify the conditions in the offer. These conditions  are described as the "qualified acceptance". Further formal letters may then be exchanged to be agreed by both sides and, subject to these modifications, your sale is finally agreed.

'CONCLUDING THE BARGAIN' - 'MISSIVES' - CONTRACT

The offer, acceptance and subsequent letters, which are described as "formal" because they are intended to be part of a legal contract, are known as "missives". When one party accepts all the other party’s qualifications, it is said that "missives are concluded", which means that you and the purchaser have entered into a legally binding contract. You will be consulted and advised at each stage of this process.

INVESTIGATION OF TITLE

During these investigations, and in preparation for completing the transaction, the purchaser's solicitor will investigate numerous matters concerning the property and its title. Much of this is done by requiring the seller to make disclosures of the relevant information and to produce the necessary documents in support.

THE TITLE

The purchaser's solicitor must carry out a thorough examination of the title deeds to ensure the seller is genuinely the owner of the property, and that your right to sell the property is not restricted in any way. Title deeds also describe the precise extent of the property. You may have to prove that the property described in the title deeds is precisely what the purchaser thinks they are buying. Examination of the title should also reveal whether there are conditions relating to the property about which the purchaser should be aware, e.g. restrictions on business use, or a contribution cost to the maintenance of common ground. 

LOCAL AUTHORITY MATTERS

The purchaser will want to know whether the roads and sewers are public or private, if there are any planning proposals which may affect the property, and whether the local authority has made any statutory orders or notices affecting the property. We will provide the purchaser's solicitor with information about all these items by ordering a 'Property Enquiry Certificate' which the seller pays for.

DISCHARGE OF THE MORTGAGE DOCUMENT

Lenders will usually instruct us to carry out their legal work as well, saving you time and money. The Discharge of the Standard Security (mortgage) is a separate legal transaction in which we, acting on the lender’s behalf as well as your own, must have the same regard to the lender’s interests as to yours. The lender will require us to pay off the mortgage with the sale proceeds and record the Discharge in the Registers of Scotland. The lender requires you to cover these costs which are included in the solicitor’s fee.

TITLE DEEDS

There will be various documents for you to sign in connection with the transaction, the Disposition being the most important, as the deed which legally transfers the property to the purchaser.

PREPARING FOR SETTLEMENT

As the date for settlement of the sale approaches we must draw together all the strands of the transaction, we must ensure that there are no outstanding queries about the property or title, that all the required documents have been obtained, and if necessary, signed and that we know exactly how much we will have to pay the lender out of the sale proceeds. You will have explained to you what will actually happen on the date of settlement and must remember to give us the keys!

THE DATE OF ENTRY - PURCHASE DATE

We must ensure that the purchase price is in our hands on the agreed date of entry. In exchange the purchaser is entitled to get the keys and the title deeds.

AFTER SETTLEMENT

After concluding the transaction we will report to you detailing any matters that remain to be dealt with and in particular any financial matters which are still outstanding. Eventually when the recording or registration process is complete, we will send the final Search to the purchaser's solicitor.