[BUYING AND SELLING REAL ESTATE IN SCOTLAND]
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any structural or other alterations to the property requiring consent. The existence of any structural alterations should be highlighted in the Survey/Home Report. During the Conveyancing process, checks are made to ensure, for example, that there are no previous Securities or mortgage deeds affecting the property, which will remain undischarged after the purchase has been completed, and to ensure that there are no court orders (such as a Bankruptcy Order) which prevent the seller from granting a good and marketable clear title to you. Similar procedures operate in reverse in the case of a sale. The seller’s solicitors will answer any reasonable observations made on the conditions in the title deeds and searches. The purchaser’s solicitor will prepare the conveyance of title deed in favour of the purchaser, and after settlement of the transaction takes place, ensure that the purchaser’s title is registered in the Land Registers. The registration system is electronic, and all deeds are now held electronically by the Scottish Land Registry. 5. LAND AND BUILDINGS TRANSACTION TAX (formerly Stamp Duty) This tax has been recently introduced by the Scottish Government and replaces Stamp Duty. It is based on the price of the property purchased, and the level of tax has been increased for more expensive properties. Please ask us for a calculation of the tax payable when considering purchasing a property in Scotland. 6. MONEY LAUNDERING REGULATIONS Every solicitor in Scotland must comply with The Law Society of Scotland’s money laundering regulations. This means that if we have not acted for a client in the past, we must in every case obtain verification of identity. If the documentation required cannot be
produced, then we may have to report the transaction to the relevant authority. We would also likely withdraw from acting. We will need to see the original of one of the following: UK passport, resident ’ s permit issued to EU nationals, UK (or EU equivalent) photo driving license, Inland Revenue Tax Notification, firearms certificate, or suitable ID from client who reside outwith the EU and the original of one of the following: bank statement, utility bill, council tax bill, mortgage statement, land registry confirming house purchase, confirmation of house purchase from other solicitor, tenancy agreement or confirmation of address from Electoral Register, or the equivalent from clients residing outwith the EU. Clients from the EU and further afield will also be required to provide information about the source of funds to be used for their purchase. If the purchaser is buying or selling as a limited company, partnership, or other body, but not as an individual, we still need to carry out such money laundering checks, as are required by the laws in force at the time. We will supply prospective clients with details of the current requirements at the outset of the transaction. 7. INSURANCE We recommend that buildings insurance on the property and if relevant life policies on purchaser’s live s are effected (provided proper advice is taken and given) and, subject to that, put into force as soon as missives are concluded in any purchase because from that date a purchaser will be under a legal obligation to purchase the property and pay the purchase price. 8. GENERAL Hopefully, we have covered some of the more relevant issues that may arise during a residential sale or purchase transaction. We did
ILN Real Estate Group – Buying and Selling Real Estate Series
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