Scotland’s house buying system is regarded as being a superior one. This is mainly because it avoids gazumping. At the same time one of the major downside of house buying system in Scotland is the ‘offers over pricing system’. This means that the buyers can resort to house sales for over bidding to secure a house.
A proposed purchaser has to go through several steps in Scotland. Arranging For A Mortgage:
First and foremost the purchaser has to get a confirmation from a mortgage lender that he will lend him a certain sum of money to purchase the proposed property. Without this confirmation an offer will not be taken seriously.
Appointing A Solicitor:
You will have to engage a solicitor from the very start. As he will be making offers on the purchasers behalf and also receive offers from the seller. This is the main reason why buyers in Scotland don’t face gazumping, as the law is involved at the earliest possible stage.
The purchaser’s solicitor must ‘note interest’ with the seller’s solicitor, once the purchaser likes a property. This term means that if someone else makes an offer on the property, the buyer’s solicitor must inform you about it. The property cannot be sold, without giving you an option to bid.
Surveying The Property:
The buyers get a survey done of the property before they make an offer. As the next step, once the bid is approved, is to enter into a legally binding contract. Hence before they make a bid they want to make sure that they would not be stuck with something shaky.
Getting the property surveyed, before making an offer, is the most criticized aspect of Scottish buying system. As the property can only be sold to one buyer. While others will have paid for the survey but left disappointed.
Making An Offer:
In Scotland, the house buying system works on a ‘offers over’ system. In this system, a price is given and buyers are invited to bid over this price. This aspect is widely criticized, as buyers can put in higher bids to secure the property. In Edinburgh there is a shortage of nice apartments and townhouses. So if something comes in the market, it is difficult to guess how high it will go.
Date Of Entry:
The purchaser’s solicitor submits a bid with the financial amount as well as the date of entry. This is an agreed deadline between the parties, once the offer becomes binding.
Concluding The Missives:
Once an offer is accepted, this is the next stage, which is like concluding a contract. After the missives are concluded between the solicitors the offer contract become legally binding.