In Edinburgh, Scotland, like the rest of the cities in the United Kingdom, buying and selling a property usually take two to three months. This process can even take longer if you’re a part of a chain. 

As a property buyer, you can make offers through a real estate agent, and once your offer has been accepted, the legal contract and transfer of ownership should be carried out by the seller. It’s important to know all the terms before signing anything, most especially concerning the legal aspects.

In this post, you’ll learn the legal aspects of buying a property in Edinburgh, Scotland, which serves as your reference to avoid getting in trouble when getting a property investment. 

You Need to Hire a Local Solicitor

Before doing anything, it’s important to hire a local solicitor, such as Jones Whyte Property Solicitors. A local solicitor will act on your behalf in all legal matters that relate to a property sale. 

Because the Scottish real estate market doesn’t like chains, it’s tricky to buy properties in Scotland. You have to be ready to pay a deposit and create a mortgage agreement before you offer. That’s why you have to get a local solicitor to ensure that the terms are fair for you and the seller. 

You might want to offer a non-refundable deposit so you can guarantee exclusivity while waiting for the contract exchange.

Contract Exchange 

Bear in mind that an offer is not legally binding until there’s an exchange of contract. It means that any verbal agreement is not binding. Everything should be documented and signed by both parties. 

Since the seller will be responsible for drafting the legal contract, hiring a local solicitor will ensure that all the terms and any verbal agreement are fair and clearly outlined in the contract. On the other hand, the buyer should pay the Stamp Duty Land Tax depending on the amount of the property. 

Energy Performance Certificate 

Energy Performance Certificates (EPCs) are required whenever a property is sold, built, or rented. Before a seller markets a property, an EPC should be ordered first. 

In Scotland, the seller should display the Energy Performance Certificate somewhere in the property, like next to the boiler or in the meter cupboard.

Here’s the content of an EPC:

• The energy use of a property 
• Typical energy costs
• Efficiency rating, in which “A” rating as the most efficient and “G” as the least efficient (valid for ten years)
• Recommendations about how to save money by reducing energy 

Property Ownership 

You can buy a property in Scotland and own a home with up to three people under joint property ownership. Each tenant in common or joint owner owns a share in the acquired property that can be split equally, like 50:50 for two owners. 

Also, joint owners can decide who owns more than the other. A joint owner’s share of the property will be passed to the beneficiary or whoever the owner leaves the will.

Scotland Property Buying Process 

Once you have a local solicitor to help and you have established a good relationship with local agents in Scotland, it’s time to kickstart the property buying process. 

Here’s how:

• Arrange Property Viewings: Most sellers can show houses to buyers, but for higher-value properties, real estate agents usually conduct viewings.
• Study the Home Report: The Home Report is a single survey that includes a price valuation, a property questionnaire, and an energy report. The valuation determines the asking price. For higher-value properties, both buyers and lenders conduct a more in-depth survey.
• File a ‘Note of Interest’: If you’re interested in the property, the next step is filing a Note of Interest with the real estate agent. The agent is bound to keep you updated on any developments on the property, such as price changes and offers made.
• Make a Final Offer: Once a real estate agent put offers or multiple Notes of Interest on a property, the closing date will be moved. You need to make a final offer by noon on that same day.
• Successful Offers: To make an accepted offer binding, the vendor’s solicitor should send your local solicitor a ‘qualified acceptance,’ which leads to missives or exchange of formal letters, outlining the final terms. 
• Settlement: On the agreed date, the buyer will pay the purchase price of the property in exchange for the keys, which is referred to as ‘settlement.’ 

Conclusion

In Scotland, buying a property can be tricky because all verbal agreements and offers are not legally binding unless the contracts are signed. 

That’s why it’s important to consult a local solicitor in Edinburgh, Scotland, if you’re buying a property in this area. In that way, you can keep yourself abreast of all the legal matters concerning the buying process and legal requirements for a smoother transaction.