[BUYING AND SELLING REAL ESTATE IN SCOTLAND]
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home’s energy efficiency. The responsibility for providing the home report rests with the seller, who will be responsible for the costs involved in obtaining the information required and producing the report. A prospective purchaser will be able to rely on its contents and is entitled to ask the seller for a copy of the report. The report comprises three documents: (1) THE PROPERTY QUESTIONNAIRE This is completed by the seller and contains useful information helpful to a purchaser, for example, details of any alterations to the property, the council (local authority) tax banding, any managing agents’ details, and details of repairs affecting the property. (2) SINGLE SURVEY Although instructed by the seller, the survey is prepared by a chartered surveyor and will report on the valuation of the home and its condition. A purchaser may rely on that survey and providing the purchaser is happy with the terms of that survey report and providing the purchaser’s lender (if any) is also satisfied with the terms of that survey report, then a purchaser may feel it unnecessary to obtain and pay the cost of an independent report. (3) THE ENERGY REPORT Again, this is prepared by a chartered surveyor and will report on the energy efficiency of the property, its environmental impact and if appropriate will suggest ways to improve the property’s energy efficiency. Home reports dramatically change the level of information that a seller is legally obliged to have available when selling their home. The home report needs to be available to be exhibited to prospective purchasers before a property is marketed for sale. We always advise that a prospective buyer should obtain the most detailed Report
possible on a property, before proceeding with any purchase and should be comfortable and satisfied with the terms of any home report or survey instructed directly, before entering into a binding contract for the purchase of any property. 3. OFFER AND ACCEPTANCE – “MISSIVES” When a written offer is submitted, that itself does not create a binding contract between the seller and purchaser. The offer for the property will, if generally acceptable to the seller as to purchase price and entry date, be accepted usually with legal qualifications. The offer, and any qualifications made by the two solicitors on behalf of their respective clients as part of the contract negotiations and the final acceptance will together constitute a binding contract between the seller and the purchaser (called “the missives”). Only after the final acceptance is issued will there be a binding contract and “missives will be concluded.” The contract must be written. Verbal agreement is not sufficient to conclude a contract. It should be understood that individual purchasers and sellers do not usually sign the missives and the contract is made binding by the signature of the purchaser’s and seller’s solicitors. 4. TITLE DEEDS AND CONVEYANCING Once there is a binding contract, the two solicitors (one for the seller and the other for the purchaser) will conduct the necessary conveyancing formalities and prepare the legal documentation. The purchaser’s solicitor will receive and examine all the relevant Title Deeds of the property and will check the conditions, which apply to ensure that there are no unusual and exceptionally oppressive or onerous conditions. They will check to ensure that Local Authority Consents are in place for any structural or other alterations to the property requiring consent. The existence of any structural alterations should be highlighted
ILN Real Estate Group – Buying and Selling Real Estate Series
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