PURCHASING A PROPERTY
We regularly receive requests for advice from prospective purchasers as
to the procedures involved in buying a property in Scotland. We hope that
the following is of some assistance.
Instructing a Solicitor
Some years ago the Law Society launched an advertising campaign with the
slogan “It’s never too early to call your Solicitor” and
this is certainly true when it comes to buying a house. We can provide
you with valuable advice and assistance in purchasing a property long
before you have identified the property you wish to buy.
Costs
Many prospective purchasers wish to establish at the outset the likely
costs involved in buying a property. We are happy to provide on request
a no obligation written quotation in respect of our charges and the outlays
which we will incur on your behalf.
Finding a Property
We market many properties in Dumfries & Galloway through our own estate
agencies at 38/40 Albert Street, Newton Stewart and the Old Bank, Buccleuch
Street Bridge, Dumfries. Furthermore, as members of the Dumfries &
Galloway Solicitors Property Centre we can provide information on a considerable
number of other properties for sale throughout the Dumfries & Galloway
area and can also employ our extensive knowledge of the local property
market to assist you in identifying suitable properties.
Noting Interest
Once you have found a suitable property you should formally note your
interest in that property with the marketing agents which we are happy
to attend to on your behalf. Once you have noted your interest in a particular
property the seller should not then sell that property to anyone else
without first giving you the chance to offer for it.
Arranging a Loan
Unless you have funds of your own available to buy a property you will
be required to arrange a loan to assist in the purchase. Most lenders
will insist on taking out a Security over the property being purchased
and this Security is generally referred to as a mortgage. There are many
different mortgage providers and even more mortgage products on offer.
For most people taking out a mortgage is the biggest financial commitment
they will ever undertake. It is important therefore that you choose the
mortgage package best suited to your particular requirements.
Instructing a Survey
It is advisable to obtain a Survey Report on a property before you commit
to its purchase. A Survey Report will advise you on amongst other things
the market value of the property, it's structure and condition, it's suitability
or otherwise for mortgage purposes and it's reinstatement value. Where
a property is being purchased with the assistance of a mortgage the mortgage
provider will insist that you obtain at least a Mortgage Valuation Report
on the property. There are several different types of survey available
and we will advise you on the most suitable type for the property you
are buying. We are also happy to instruct a survey on your behalf should
you so wish.
Putting in a Formal
Offer
Assuming that you are satisfied with the terms of your survey, you should
then instruct us to submit a formal Offer for the property on your behalf.
If there are other interested parties then it is likely that a closing
date for Offers will be fixed. This is essentially a date on which all
interested parties submit their best Offers. Where there is no closing
date it should be possible to submit an Offer immediately. It is important
to note that an Offer is a legal document. Accordingly you should not
instruct us to submit an Offer until you have received confirmation that
your Mortgage Application has been approved or you are satisfied that
you have sufficient funds available to pay the purchase price. When discussing
the Offer, we will give you such advice as we can on how much to Offer
for the property. Matters to be considered include how much you can afford
to pay, the market value of the property, the asking price and the length
of time it has been on the market.
Negotiating the Terms
and Conditions of the Contract
If your Offer is successful then a period of negotiation of the terms
and conditions of the contract will usually follow. Matters to be negotiated
can include the date on which you will require to pay over the purchase
price (the date of entry), the moveable items to be included in the price
and how to resolve any Title or other difficulties. It is important to
note that it is only after all the various terms and conditions of the
contract have been agreed that a binding contract will exist. Before then
either party is free to withdraw from negotiations without penalty.
Examining the Titles
and Attending to the Conveyancing of the Property
We will then examine the Titles to the property to ensure that the seller
is entitled to sell everything that you have contracted to buy and that
there is nothing which might adversely affect the value or your enjoyment
of the property. We will also prepare all deeds and documents necessary
to transfer Title to the property into your name and all relevant mortgage
documentation.
Settling the Transaction
Finally, we will make arrangements with any mortgage lender to ensure
that your loan funds are available when required. We will also write to
you in advance of settlement with instructions for payment of any contribution
you are making to the purchase price from your own funds. You will require
to arrange buildings insurance for at least the current reinstatement
value of the property commencing on the date of entry as well as contents
insurance. We are happy to arrange your buildings and contents insurance
policies on request. Once the price has been paid over and you have moved
into the property we will notify the Local Council of the change of ownership
for the purposes of Council Tax. We are also on hand to offer such other
practical advice as we can, particularly if you are new to the area.
Making or Updating Your
Will
If you do not have a Will then your estate will not necessarily be divided in accordance with your wishes on your death. With this in mind, if you instruct us in a property purchase then we would suggest you take this opportunity to make a Will or update your existing Will. Details of the procedures involved in making a Will can be found on our other information page, Making a Will.
Should you have any further queries, or if you would like a quote for fees for a property purchase then please e-mail us at advice@abamatthews.com.
