. . . The Legal Process For Scotland
Continued
If you are buying, it will take, on average, approximately four
months from when you start looking for a new home until you move in but that is
very much a broad estimate – by agreement all round it can happen much more
quickly – or be more delayed.
One major disadvantage of the present system (see note below)
is that you will expend legal, survey and financial fees before you are in a position
to make an offer. If there are other proposed buyers interested in the same property,
you have no idea whether or not you will be successful in your bid.
If your offer fails, then all that expense will be wasted as there
can only be one successful bidder. A further disadvantage is that you could be
bound by contract to purchase your new home when you have not yet sold your existing
property. This would, of course, involve bridging finance until your property
is sold, with all the attendant expense. Conversely, you may have sold your own
property before the missives have been completed and this might require you to
vacate at the date of entry and find temporary accommodation until your own purchase
is completed. These disadvantages can be mitigated by careful synchronisation
and we will do all we can to ensure your purchase takes place smoothly with as
little disruption and additional expense as possible.
We will liaise with solicitors to ensure, as far as practicable,
that such a situation does not arise, unless you are fully aware and appreciate
the consequences. Scottish solicitors are regulated by The Law Society of Scotland
in relation to closing dates and the conclusion of missives, in order to minimise
problems. One solicitor can only act for both parties if there is no conflict
of interest.
As just remarked, changes are in prospect not dissimilar to those
proposed for England & Wales under the Homes Act 2004. This sets out a scheme
for Home Information Packs (HIPs) to be prepared before a property is first offered
for sale. This pack will include the details of title and the likely contents
of the eventual draft contract. It will also contain a Home Condition Report with
a broad indication of which aspects of the property are in good or fair condition
and which may need earlier attention. Finally, it will also include an Energy
Efficiency Report.
The Scottish Executive is keen to introduce a similar scheme and
on a similar time-scale. There are two main differences, firstly the Packs are
being called Purchaser’s Information Packs and, secondly, unlike HIPs, in
addition to the Condition Report and Energy Efficiency Assessment they will also
include an indicative valuation. Of course there will be no obligation for the
eventual sale to be concluded at that price but the thought is that invited bids
can sometimes result in people looking at properties they are never going to be
able to afford. Having each property offered with a professionally appraised guide
price should help. The lender’s need not base the mortgage on this figure
either. In both England and Scotland the hope is that due to this earlier availability
of legal information, etc., the sale agreements can then be concluded much more
quickly with cost savings and other benefits all round.
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