Airds & Co. Limited Buying

THE PURCHASE PROCESS

WHAT YOU NEED TO KNOW

Whether you are a first time buyer or you are looking to move and sell your property, and, need more information regarding the buying process, you should read the following guide to give you an idea of what you need to do and know.

1. Firstly, what is your budget?

When you are looking for a property, can you afford it? You must ensure that you have funds available. Speak to your bank or an independent mortgage adviser to ensure that you can apply for a suitable affordable mortgage.

If you require to apply for a mortgage, we can point you in the direction of an independent mortgage adviser. Contact us for more information.

If you need to sell your current property, we can offer a free market valuation.

When you are budgeting for your purchase, please send us a request for an estimate of fees and outlays from us by completing the 'Request an Estimate' form available.

In addition, once you have completed your purchase, you will have monthly costs, so check these costs beforehand, for example;

(a) mortgage

(b) buildings and contents insurance

(d) council tax

(e) gas and electricity

(f) telephone, broadband and

(g) home repairs

2. Finding the property you want.

As a member of the ESPC, we recommend that you have a look at the ESPC website and the SPS website for properties on the market locally in the Edinburgh, Lothians and Fife areas and nationally throughout Scotland.

3. What information do you need to gather?

If you have found a property or properties you are interested in, you should request a copy of the home report from the seller or selling agent. You should also notify us immediately. We can contact the selling agents to note your interest, which lets the seller know that you are interested in the property. At this stage, we can find out if there are any other interested buyers and we will ask the selling agent for a copy of the home report, so that we can review and discuss same with you along with past sale prices in the area with comparible properties, so that when you are ready to make an offer, you can make an informed decision. Please note that by noting your interest, you are not under any obligation to proceed with an offer nor is the seller under any obligation to set a closing date or consider any offer you make.

What is the Home Report?

Since 1 December 2008, homes for sale in Scotland require to be marketed with a Home Report.

A Home Report consists of three documents;

(i) a Single Survey - an assessment by a surveyor of the condition of the property and valuation

(ii) an Energy Performance Certificate- an assessment by a surveyor of the energy efficiency of the home and its environmental impact and the recommendations to improve energy efficiency

(iii) a Property Questionnaire - completed by the seller of the home. It contains additional information about the home, such as Council Tax banding and factoring costs, useful to you, the buyer.

SCOTTISH GOVERNMENT HOME REPORT LEAFTLET click here for more information

4. Ready to make an offer?

Once you have your funding in place and have reviewed the Home Report and any past sale prices, and, you are ready to make an offer on your chosen property, if there are no other notes of interest, we can act quickly to submit an offer on your behalf for the seller to consider. This way you may be able to secure an agreeable offer with the seller before anyone else notes their interest. If, however, there are notes of interest from other potential buyers, the selling agent may opt to set a closing date, although, the seller is not obligated to do so. If a closing date is set, it will be set for a set day and time, i.e. Friday at 12 noon, which will allow all noted parties the chance to make an offer.

Please remember your budget! While you have a budget in mind, please ensure you check the Home Report for comments made concerning repairs (i.e. damp, wet rot, dry rot, roof repairs), which may prove costly, or, the age of items (i.e. central heating boiler), which you may have to replace, once you move in. In certain cases, it may be worth instructing a roofer, damp and timber specialist, gas engineer, plumber or electrican, etc. to inspect the property and obtain an estimate of costs before proceeding with the transaction. Typically, a condition can be added to an offer to state that the offer is subject to a satisfactory roof report and estimate, as an example.

The written offer submitted on your behalf to the selling agents is prepared in the standard format known as the Edinburgh and Lothians Standard Clauses 2011 Edition, see link below.

EDINBURGH AND LOTHIANS STANDARD CLAUSES (2011 EDITION) click here for more information

EDINBURGH AND LOTHIANS STANDARD CLAUSES CLIENT GUIDE click here for more information

If the property, you are interested in, is not located within the Edinburgh and Lothians area, we will supply you with a copy of the Standard Clauses relevant to the chosen area.

Once the offer has been accepted by the seller, the selling agents will reply to the written offer submitted on your behalf. Their response is known as the Qualified Acceptance. Once their written acceptance has been received, instructions will be obtained from you and if you are happy to accept their terms, then the next step would be to conclude the bargain. The offer, qualified acceptance and formal letter concluding the bargain form the contract known as 'missives'. Another phrase for concluding the bargain is 'concluding missives'. Once this happens, both parties, the seller and the buyer, become party to a legally binding contract.

5. Conveyancing process?

The conveyancing process involves the preparation to transfer the title of the property to you.

The process includes;

(i) examining the recorded/registered title deeds

(ii) examining all relevant searches

(iii) accepting and reviewing any mortgage offer and instructions from your chosen lender and preparing the relevant mortgage deed known as the Standard Security

(iv) preparing the SDLT form in relation to Stamp Duty Land Tax payable

(v) preparing in anticipation of settlement, all relevant registration forms

(vi) reviewing any alteration and specialist documentation

(vii) ensuring all funds are in place for settlement

6. The date of entry/date of settlement?

As part of the written offer, you, the buyer, and the seller will have agreed a date of entry. It is this date that settlement takes place, whereby the purchase price is paid to the seller and you will receive the title deeds and the keys!

At this stage, we will immediately arrange to settle any Stamp Duty Land Tax payable and register your title to the property.

Once you have entry to the property, you should ensure that the property has been left in good condition and that all items included in the sale have been left by the seller (or any items not included in the sale have been removed!). You should also test all systems, i.e. central heating, to ensure that they work. Under the terms of the missives, you have five working days to check these items and, if necessary, submit a claim to the seller, subject to the terms of the missives.

Lastly, if you have not prepare a Will already, then this would be a good time to think about writing one, and, we would be happy to assist you further, if you do.

ACL @ 2012