Buying a home in Scotland: Home Report, offers and missives

Step 1: the Home Report

When you find a home you like, ask for the Home Report. It has three parts:

• a single survey and valuation: a chartered surveyor’s visual inspection of the condition, accessibility, repairs needed, and an opinion of value;
• a property questionnaire, covering 16 categories such as the council tax band, past damage, alterations and notices affecting the home;
• an energy report: an Energy Performance Certificate with estimated heating, lighting and hot water costs.

If the seller or agent does not provide it within nine days, you can contact your local council’s trading standards service. A seller can refuse to give it only if they doubt you are seriously interested, doubt you have enough money, or would prefer not to sell to you. Some homes do not need one, such as homes on the market since before 1 December 2008, off-plan or first-occupier new builds, dual-use homes and seasonal holiday homes. An Energy Performance Certificate is still required in those cases. See the Home Report.

Step 2: the solicitor notes your interest

Tell your solicitor when you like a home and are happy with its Home Report. Your solicitor formally “notes” your interest with the seller’s side. This does not commit you to buy.

Step 3: closing date and offer

If several people note their interest, the seller can set a closing date: a deadline by which all written offers must be given to the seller’s solicitor. If no closing date is set, nobody else may have noted interest, and you might be able to negotiate a price instead (mygov.scot).

After the closing date the seller reviews the formal offers. The seller does not have to accept the highest offer, or any offer. Offers often include conditions such as a moving-in date, items included in the price, or technical conditions based on the Home Report. The mygov.scot page does not say whether a closing date is legally required.

Your offer must be sent as a letter from your solicitor. If the seller agrees to sell, their solicitor sends a qualified acceptance: acceptance of your offer depending on certain conditions. Because the contract is not yet binding, decide before this stage whether you are ready to commit.

Step 4: missives and the binding contract

The two solicitors exchange letters, the missives, to negotiate the conditions of the sale. The concluding missive is the final letter, written once both sides are happy with the conditions, and mygov.scot says it “is a binding contract between you and the buyer.” Verbal acceptance does not bind either side.

Step 5: conveyancing checks

During conveyancing your solicitor makes sure the seller actually owns the home, checks there are no unusual conditions in the deeds that affect how you live there, tells you about any burdens (legal limitations, for instance not being allowed to build a fence) and any obligations to let someone use the land, and makes sure any existing mortgage is paid off when the home transfers to you.

Step 6: settlement and the date of entry

Settlement is the last step. It is when you get possession of the home, usually on the agreed date of entry. Your solicitor confirms to your lender that the home is in your name, collects the loan and your contribution, and in exchange for the money receives the disposition (the transfer document), the title deeds and the keys. If you have a lender, the deeds go to them as security.

Step 7: LBTT and registration

• LBTT: the return must be made within 30 days of the day after the effective date (Revenue Scotland). Your solicitor normally handles it. See LBTT in Scotland.
• Registration: your details are added to the Land Register, which records who owns land and property in Scotland. The title sheet lists the current owner, the price, mortgage details and any conditions affecting the property. New purchases are not recorded in the older Sasine Register, which is being replaced.

England, Wales and Northern Ireland

In England and Wales an offer is not binding until contracts are exchanged; see buying a home in England. The Scottish system binds the parties earlier, at the concluding missive.

Which professional to consult

In Scotland, a solicitor handles the whole legal process, and a surveyor produces the survey in the Home Report. A mortgage adviser can arrange your lending before you offer. See the conveyancer, the surveyor and the mortgage adviser.