[BUYING AND SELLING REAL ESTATE IN SCOTLAND]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER SCOTTISH LAW 1. Introduction This guide applies to real estate in Scotland only. 2. Tenure Real estate, both commercial and residential in Scotland may be either of the following: Freehold
aspect of a purchase/sale and conveyancing transaction. In these notes, we have attempted to highlight only the main topics. Each transaction has its own peculiarities and potential problems. We shall be pleased to answer more detailed questions and to advise as required. INDEX Section Subject 1 The Survey 2 Home Report 3 The Offer and Acceptance 4 The Title Deeds and Conveyancing 5 Land and Buildings Transaction Tax 6 Money Laundering Regulations 7 Insurance 8 General 1. THE SURVEY Ideally a purchaser should always obtain the most detailed survey report on the property to be purchased. Better to be “safe than sorry.” While a prospective purchaser is entitled to instruct their own report, generally, they may choose to rely on the home report referred to in the following section. 2. HOME REPORT With a very limited number of exceptions (for example new build properties) all homes (all types) that are advertised for sale in Scotland from 1st December 2008 require a home report. This is a statutory requirement. The report consists of a pack of documents that will report on the condition of the property. It will contain a valuation of the property, and a report on the
Freehold real estate is the absolute property of its owner, subject to any rights and title burdens or servitudes in favour of third parties. These may affect how the real estate is used. Leasehold Leasehold real estate is held under a lease for a fixed period of time, usually subject to the payment of rent and the performance of obligations specified in the lease. The terms of the lease will dictate whether or not the leaseholder is entitled to transfer its interest to a third party or whether it can sublet either the whole or part of the real estate. 3. Know your client (KYC) It is necessary to conduct due diligence on the purchasing entity to comply with UK and European-wide Anti-Money Laundering Regulations. The documents which are required will vary depending on the purchasing entity, but they will need to establish the identity of the purchaser and its ultimate beneficial owner. Actual requirements are set out at greater length in Section 4. 4. Guide to purchase and sale of Residential Property We are frequently asked by purchasers and sellers to answer many basic and wide-ranging questions concerning all types of residential property and investments. It is difficult to produce a comprehensive guide covering every
ILN Real Estate Group – Buying and Selling Real Estate Series
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