Conveyancing

	Because of the complexities and particularly the legal and financial implications, buying property is more complicated than most purchases you will make. You may be taking a mortgage; you will be paying constant insurance premiums, maintaining the property and indeed spending money on furnishings, decorations, etc.
	Immediately you decide to by a home you must obtain the right sort of advice. You should contact your solicitor straight away, who will be happy to discuss and advise on the matter.
	Your Finances:
	To buy a home you must first have the money or access to the money to pay the "Price". In virtually all cases you will require to pay a proportion of the cost yourself (often referred to as the deposit).
	With most purchases you will be borrowing much of the price from a Building Society, Bank or Insurance Company. The loan will be secured over the property you purchase. Where you are dependent on a loan, the Building Society or Bank, etc. may arrange for the property to be valued. A valuation may be half the cost of having your own survey done, remember it does not give you the same safeguards.
	It is a good idea to contact your solicitor, who can advise whether a private survey is advisable and if you can avoid the cost of a private survey and the lending institution's valuation report.
	Making an Offer
	In Scotland once you have decided that you would like to purchase the property you require to make a formal offer in writing. Never do this yourself. It is extremely important that the offer be prepared correctly. If the offer is accepted it is a binding contract under Scots Law. If you have second thoughts after this offer is accepted you could be liable for substantial damages if you decided that you do not wish to proceed.
	It is therefore vital that you seek professional advice to ensure that you have enough money to go through with the purchase and all relevant conditions governing the contract are included.
	With a new property, you will normally be presented with the Builder's Offer. You should never sign until you have gone over the terms with a solicitor and are satisfied that the formal contract reflects accurately the agreement with the builder and that the necessary funds are available to pay the price.

	In addition to any special conditions relating to your particular case, offers relating to house purchase in Scotland are likely to contain clauses relating to the price, the entry date, moveables, transfer of title, planning and environmental health regulations, etc.
	The Price:
	Some properties are advertised in Scotland at "offers over" a certain figure. This usually implies that the seller expects to receive a sum over the asking price. Other properties are advertised at "in the region of" a sum. The actual price you will have to pay may be considerably above or below the asking price and your Solicitor can often be of assistance in advising as to the actual price you may have to offer. The price depends on various factors, i.e. market conditions, condition of the property, time on the market, amount of interest in the property, etc.
	Some properties, in particular new houses, are sold at a "fixed price". Buyers should always remember that simply because a property is sold at a "fixed price" it does not mean that a valuation by a surveyor will be at that price. Where the property is being sold without a fixed price it is for you to decide the price that you wish to offer. The following may assist you.
	Before you come to make an offer you will probably have seen a number of properties and you will have an idea of what you may be prepared to offer. You can therefore decide a price on the basis you would say to yourself "If I don't get it for that, I don't care". You can also calculate how much you can actually afford. The formula is: Take the maximum amount of mortgage the Building Society offered in respect of the particular property and add on savings and any family loan or other money available. (If you have a property to sell your Solicitor will be able to advise you on the amount you are likely to have available from the sale after expenses, etc.). From the total, deduct the amount that you will require to removal costs, furnishings, etc. and legal fees for the transaction. Your Solicitor can advise of the balance remaining after these calculations and is the maximum amount you can afford.
	In some cases you may decide, or be advised to offer less than your best offer, but remember that you may not get a second chance. At least with your best offer there should not be tears if your offer is not successful. After all, it you are not prepared (or able) to pay any more, you will not say if only, perhaps if I had offered a few hundred more..
	The Entry Date:
	The date of entry is the legal way of referring to the date you pay the price and obtain the keys for the property.
	To a seller, the date when he or she expects to get the price is often as important as the actual amount of money, so you should ask the seller what his or her wishes are and try to come as close as possible.
	With a new property, the date of entry may not be known when you offer. Instead the date will generally be linked to the date of issue of a Completion Certificate from the Planning Authority. It is vital the contract accurately reflects the position.
	Movables:
	Frequently a seller is prepared or wishes to leave moveable items in the property being sold. The law defining "moveables" is complex but a rule of thumb is that where an item is screwed to the wall, etc. it is presumed to be part of the property itself, e.g. door handles, surrounds, etc. Moveables are most commonly carpets, curtains, furniture or household equipment (e.g. cooker).
	It is important to avoid any misunderstandings and you and the seller must agree exactly what the seller is prepared to leave and what he or she wishes to remove.
	Sometimes a builder will offer - "white goods" or carpets, cookers, etc. It is important to find out exactly what you are entitled to, and what guarantees (if any) are available for equipment, etc.
	Transfer of Title:
	It is essential that the seller grants a valid Title in your favour so that you know that no one will contest your Title and then in the future sell the property without incurring additional legal fees.
	A valid Title is also essential in order to obtain your mortgage as the Building Society cheque cannot be cashed by your Solicitor until there is a signed deed in the purchasers name.
	The deed transferring the Title is only granted in exchange for the price and so it follows that you cannot use your mortgage fund to finance a payment to account to get entry to your new home.
	Conditions of Title:
	Land, houses, etc. in Scotland are usually sold subject to conditions that require the owner to do something (e.g. put up a fence) or prohibitions on the use of the property (e.g. not to carry on any business from a residential property).
	Scots Law is presently based on a Feudal Legal System, although this may be abolished by the Scottish Parliament. Your Solicitor will be able to tell you about this.
	With new properties, the builder may be imposing a new set of conditions dealing either with your specific property or the whole development. In such cases you want to know if there will be any unusual conditions or obligations which will involve you in future expense.
	Acceptance of your Offer:
	Your offer, unless stated otherwise, may be accepted at any time and it is prudent therefore to include a time limit for acceptance.
	The actual time limit will depend on the individual circumstances, e.g. whether or not the seller has fixed a date and time by which offers must be lodged to ensure that it will be considered (generally known as a "closing date"). Your Solicitor will be able to advise you on this.
	The Making of a Contract:
	Contracts to purchase property in Scotland generally must be in writing but you should be careful about making any verbal or informal agreement for purchase of a house. Never enter into an agreement without the prior knowledge and advice of your Solicitor. Apart from new properties, it is advisable to ensure by contract the seller will be responsible for any outstanding charges for repairs or remedial work affecting the property carried out or instructed prior to the date of entry. With new properties generally the builder is responsible for maintaining the property for a period of between six months and one year.
	Planning, Environmental Health, etc.
	Properties may be affected by planning proposals or require Planning Permission from Bodies such as the Local Authority. New properties will be subject to conditions on which planning permission was granted and Building Regulations. The basic rule is that the purchaser is responsible for satisfying themselves that the enjoyment of the property will not be adversely affected by any proposals, requirements, conditions or regulations.
	So it is up to you to check the position or have your Solicitor check it for you. The formal offer can, however, make it a condition of contract that the seller inform you before completing a binding contract of repairs and he must show you Notices intimated to him or her prior to the acceptance.
	Payments to Accounts and Bridging Loans:
	At settlement of the purchase the price is exchanged for you taking possession of the property. There may be circumstances where you want to take entry to the property but do not have the full funds available. In such cases it may be necessary to arrange either a "payment to account" of the price or a "bridging loan".
	Payments to Account:
	Since, under Scots Law, there is a binding contract between purchaser and the seller, the seller may let the purchaser take entry in on receipt of a payment to account of the full price. The size of the payment to account is subject to negotiation. The purchaser gets the full use of the property but the seller only gets part of the price. Interest on the outstanding balance is usually payable to the seller. The rate of interest will depend on the circumstances in each case.
	Bridging Loans:
	There may be circumstances where the seller refuses to allow entry without payment of the price in full. It may then be necessary to obtain a "Bridging Loan" from a Bank.
	A Bridging Loan is basically an overdraft, but generally before granting one the Bank must know roughly how long it will be needed and whether the money needed to repay it is coming from a house sale or mortgage. Interest is charged at overdraft rates. In most cases the interest payable in terms of a payment to account or bridging load is eligible for Income Tax relief as is your mortgage.