Buying a House in Scotland
The procedure for buying a property in Scotland is entirely different. Under the Scottish system the seller invites offers and a legally binding contract is created as soon as an offer is accepted. In an active market a closing date is usually set for offers.
On or before the closing date the purchaser's solicitor sends a detailed offer to the vendor's solicitor. This will include the price offered, the date when possession is required and any special conditions (for example, subject to survey). There will also be conditions that the vendor's solicitor must provide proof of title and clear searches.
Once the offer has been accepted, letters are exchanged between the solicitors in order to clear up all outstanding matters. These letters are known as 'missives'. Once both parties are satisfied, the contract is made unconditional - the English equivalent of exchange of contracts. The procedures after contracts have been exchanged are broadly similar to those that apply in England .
The Scottish system is quicker than the English one but it does have several drawbacks. The main ones are explained below.
Wasted Costs
Would-be buyers often have to spend quite a lot of money on valuation and survey fees before they can make an offer for a property. If their offer is refused, this money will have been wasted. Many buyers incur abortive survey fees several times before they manage to buy a property.
Coordinating the Chain
Under the Scottish system it is much harder for buyers to coordinate their house purchase with their house sale. The consequence of this is that Scottish buyers have to arrange bridging finance and/or arrange temporary accommodation far more often than their English counterparts.
