Buying a home in Scotland

Buying a home in Scotland follows a different process from England, Wales and most other countries. The terms are different, the order is different, and the point at which a deal becomes binding is much earlier. This guide explains each step once, in the order you will meet it.

We explain how the process works and introduce you to firms who can act for you. We do not give legal or mortgage advice.

Who does what

Your solicitor does far more than conveyancing. In Scotland the solicitor makes the offer for you, negotiates the contract, checks the title, files the tax return and registers your ownership.

The selling agent markets the home for the seller. Many Scottish solicitors also sell property, and in some areas listings come through solicitor property centres such as ESPC in Edinburgh and the Lothians, so the selling agent may be a solicitor firm or an estate agent.

Your lender, if you need a mortgage, values the property against the Home Report or sends its own surveyor.

Appoint a solicitor first

In Scotland the solicitor makes the offer for you, so appoint one before you start bidding. Ask for a quote that separates their fee from outlays such as registration dues and searches.

Once you have a solicitor, they can note interest in a property for you. That tells the selling agent you are serious, and it is usually how you hear that a closing date has been set. If you have not noted interest, a home can go to a closing date without you knowing.

If you need a mortgage, most selling agents and solicitors will expect you to have a mortgage agreement in principle before you offer. Speak to a lender or a mortgage adviser.

Home Reports

Almost every home for sale has a Home Report, paid for by the seller and free for you to read. It has three parts:

• A single survey, by a chartered surveyor, which rates the condition of each part of the building from 1 (no immediate action) to 3 (urgent repair), and gives a valuation.
• An energy report, with the energy performance rating.
• A property questionnaire, completed by the seller, covering council tax band, alterations, factor charges and similar.

The Home Report must be no more than 12 weeks old when the home first goes on the market. Ask for it before a second viewing. The valuation matters: lenders lend against it, so if you offer well above it, you need to cover the gap from your own money.

Offers over and closing dates

Most homes are advertised at offers over a stated price. The price is a starting point, not an asking price. In busy areas homes often sell above it; in quieter ones they can sell at or near it. Ask your solicitor or the selling agent what recent sales nearby went for.

If more than one buyer notes interest, the selling agent usually sets a closing date: a deadline, often midday on a weekday, by which every buyer submits one written offer through their solicitor. Offers are sealed. There is no second round, and nobody is told what the others offered.

The seller does not have to accept the highest offer, or any offer. They may prefer a lower offer with a better date of entry or fewer conditions.

Fixed price

Some homes are sold at a fixed price. The seller usually accepts the first acceptable offer at that price, so speed matters. Have your solicitor and finance ready before you view.

Missives

Your offer is a formal letter from your solicitor. If the seller accepts, the solicitors exchange further letters agreeing the details. These letters together are the missives.

When the final letter is sent and nothing is left to agree, the missives are concluded, and you have a binding contract. Either side can still walk away before that point, but once missives are concluded, pulling out has serious financial consequences. This usually happens weeks before you move, which is much earlier than exchange of contracts in England.

Date of entry

The date of entry is the day the money moves and you get the keys. It is agreed in the missives and is often four to eight weeks after an offer is accepted, though it can be shorter or longer. On that day your solicitor sends the purchase price to the seller's solicitor, and your ownership is then registered in the Land Register of Scotland.

LBTT

Scotland has Land and Buildings Transaction Tax (LBTT) instead of stamp duty. It has its own bands and rates, run by Revenue Scotland. First-time buyers pay less. If you will own more than one home after the purchase, an Additional Dwelling Supplement applies on top, which can be reclaimed if you sell your previous main home within a set period.

Your solicitor files the LBTT return and pays the tax, usually on the date of entry. Check the current rates on the Revenue Scotland website, because they change.

If you are selling elsewhere at the same time

If you are selling a home in England or Wales, the two processes run on different timetables. Your Scottish purchase can become binding before your sale exchanges. Talk to both solicitors early about the order of events and what happens if one side moves faster than the other.

A typical timeline