Property
Buying a home in Scotland
The rules for buying a property are different in Scotland from the rest of the UK. Here we explain exactly how the process works.
- The estate agent
- Personal interest
- Property particulars and viewing
- Making an offer
- Mortgages
- Surveys and valuations
- Legal advice
Estate agents arrange the sale of property. They advise on price, negotiate between sellers and buyers and handle advertising.
Many offer additional services such as arranging mortgages, surveys and conveyancing. Remember, you don't have to use any of these services.
Usually, estate agents work for sellers. Sellers are the clients. They pay the fees and the agent puts their interests first. But agents must treat buyers fairly. If a buyer pays an estate agent to find a house, the buyer is the client. An agent may not accept commission from both the seller and the buyer in the same transaction.
Using an estate agent can be a complicated business, so it makes sense to know your rights, the pitfalls and how to get problems sorted out.
In Scotland, both estate agents and solicitors help potential buyers find property and negotiate the sale.
Estate agents provide advice and property details to buyers. But the agent's main concern is to get the best deal for the seller, who is the client. (As a buyer, you are the client only if you are paying an agent to find a property for you). An agent cannot act for both parties.
Remember that estate agents may be in a position to benefit personally from the sale of a property. You must be told promptly, and in writing, if your estate agent, or a relative or business partner of the estate agent, owns the property you want to buy.
Property particulars and viewing
The estate agent can provide a written description of the property (known as property particulars). This will give you an idea of what a property is like. It is against the law for an estate agent to make false or misleading statements about a property. If the particulars say the property has double-glazing and loft insulation, it should have these features.
If there are terms in property particulars you do not understand, ask for an explanation.
If you think you might be interested in buying a property, the next stage is to go and see it. The estate agent cannot charge you for arranging a viewing or showing you round the property.
Estate agents must treat all buyers fairly. For example, you should not be treated differently because you do not arrange a mortgage through the estate agent.
With the valuation and survey done and your mortgage arranged, if you want to go ahead and buy the property, ask your legal adviser to prepare a formal written offer. This must include the price you want to pay and when you want to take ownership of the property.
Often the seller will respond with a qualified acceptance, agreeing to some terms in your offer but not all of them. You and the seller can negotiate, but once there is a complete agreement in writing, there is a binding contract.
It is not always the highest offer which wins. The seller may, for example, sell to the person who can proceed with the sale most quickly.
If your offer is accepted, the seller's legal adviser will send a letter to you confirming the details.
Be aware that an estate agent, or anyone engaging in estate agency work, cannot accept pre-contract deposits.
There are a number of ways to find a mortgage. Shop around, for example, at banks and building societies. Or go to an independent financial adviser who will be able to tell you what's available.
Estate agents can also give advice and may offer to arrange a mortgage for you. You do not have to take up this offer.
A mortgage is a large, long-term debt. You could lose your home if you can't keep up the repayments.
Think carefully before taking on a mortgage.
Before giving you a mortgage, the lender will get the property valued.
The valuation helps the lender, but you may want more information from a home buyer's survey. This is a more detailed inspection of the state of the property. You could ask the valuer to draw up a home buyer's report while preparing the valuation for your lender. Or you may prefer to use a valuer who is not in contact with your lender.
You might want to get, or the lender may require, a full structural survey. This tells you whether the property is sound or whether major repairs are needed. A full structural survey should be carried out by a qualified and independent surveyor.
To find a surveyor or valuer, ask friends and relatives if they can recommend one. If not, look for details in the phone book or ask in your local library. If you want to use a surveyor or valuer who is a member of a professional association look for the letters ARICS or FRICS or get details of members through the Royal Institution of Chartered Surveyors.
If you are buying a flat, you will probably be partly responsible for the upkeep of common parts of the building, such as stairways, roof and garden. Ask your surveyor to check the whole building as well as the flat. Does the building need, or has it recently had, major repairs such as redecoration, or a new roof or a lift? If so, will you have to pay a share of the costs?
The cost of a home buyer's survey and valuation or a full structural survey will normally be based on the value of the property.
You can do the legal side of buying a property yourself. There are books on do-it-yourself conveyancing in your local library. But unless you are really confident you know what you are doing, it is best to leave this to the professionals.
Legal advisers know the problems that can arise, can ask the right questions and are insured against making mistakes.
Fees vary and it pays to shop around. Try the phone book or ask around. The estate agent may be able to recommend a legal adviser.
Do not use the same legal adviser as the seller.
