Understanding the Scottish property buying process: what’s different?

Buying a property is one of the biggest financial decisions you’ll ever make, and if you’re buying in Scotland for the first time, you might be surprised to discover that the process is slightly different from the rest of the UK. From the role of Home Reports to the system of missives and the way offers are submitted, the Scottish property buying process has its own unique legal framework.

Before you begin searching for a property, it’s important to work out how much you can afford, get a mortgage in principle, and of course factor in additional costs such as legal fees, Land and Buildings Transaction Tax (similar to Stamp Duty in England), and moving expenses. Most lenders will require proof of income and other financial information before issuing a mortgage agreement in principle and having this in place strengthens your position when it’s time to make an offer.

One of the major differences between buying property in Scotland and the rest of the UK is the requirement for a Home Report. In Scotland, the seller is legally required to provide a Home Report before marketing the property. This includes:

• Single Survey - A detailed assessment of the property's condition and value by a chartered surveyor
• Energy Performance Certificate (EPC) - Information about the property's energy efficiency
  
• Property Questionnaire – Completed by the seller, it includes details about council tax, alterations, and parking
  

The Home Report gives buyers transparency about the property’s condition and any potential issues, and allows buyers to assess whether the asking price reflects the property’s value. It’s important to review the Home Report carefully to identify any potential red flags, such as damp, structural issues, or outdated wiring.

Once you’ve found a property you want to buy, you need to submit a formal offer. In Scotland, this is typically done through a solicitor. Before making an offer, your solicitor can submit a Note of Interest to the seller’s estate agent. This signals that you are seriously considering the property and want to be informed of any competing offers.

If multiple Notes of Interest are submitted, the seller may set a closing date. At this point, buyers submit sealed offers, and the seller chooses the most favourable one — which isn’t necessarily the highest price. Factors like financial readiness and flexibility on moving dates can also influence the decision.

An offer in Scotland is more formal than in England and Wales. Your solicitor will draft and submit a written offer, which includes the purchase price, a proposed entry date (completion date) and any conditions of the offer.

Once the seller accepts your offer, the process moves into the negotiation stage, known as the conclusion of missives. If your offer is accepted, you are legally bound to proceed (subject to the terms of the missives). Missives are a series of formal legal letters exchanged between the buyer’s and seller’s solicitors. Once both parties have agreed to the terms and all missives have been signed, the contract becomes legally binding. Unlike in England and Wales, the buyer and seller in Scotland are committed to the sale once missives are concluded. If either party pulls out after this point, they may face financial penalties.

The Scottish property buying process may seem daunting at first, but with the right legal support, it can be a smooth and stress-free experience. Understanding the key differences, from the importance of Home Reports to the role of missives, will give you confidence when buying a home in Scotland. For more information on the process contact Ness Gallagher Solicitors today.