[BUYING AND SELLING REAL ESTATE IN SCOTLAND]
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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. ADDITIONAL DWELLING SUPPLEMENT Additional Dwelling Supplement (ADS) is an additional charge added by Revenue Scotland to any Land and Buildings Transaction Tax (LBTT) which may be due if you buy an additional residential property (dwelling) in Scotland, for example: a second home, a rental property and a property used by family and friends even if you don’t charge rent. ADS will also apply in instances where you buy a residential property in Scotland and you
already own one or more residential properties anywhere in the world, if there are two or more buyers: if any buyer already owns one or more residential properties anywhere in the world, and where you are not replacing or selling your ‘only or main’ residence. Since 16 December 2022, the rate of ADS is 6% of the purchase price. 7. 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 out with 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 out with 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 conduct 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.
ILN Real Estate Group – Buying and Selling Real Estate Series
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