The conveyancing process is long and complicated, so it’s important to have the experts on your side to handle the nitty-gritty details and see your sale through to completion.

In Scotland, the conveyancing process differs from the rest of the UK, here’s everything you need to know from start to finish.

What is conveyancing?

Conveyancing is the term used for the legal process of transferring property ownership from the existing homeowner to the buyer. It is typically carried out by a solicitor or a licensed conveyancer, who will draw up contracts to be exchanged between the buyer party and the seller party. These contracts are also known as ‘missives’.

The conveyancing process also involves carrying out investigations into the property and the people who are buying or selling. This is when your conveyancing solicitor will conduct a series of checks to make sure that there are no potential issues that could present themselves further down the line. This provides both parties with clarity from the outset while also mitigating the chances of any unwanted surprises arising once the transaction is complete.

The process

Contacting your solicitor

Firstly, you’ll need to contact your solicitor to discuss your plans to sell. Once this has been confirmed, your solicitor will inspect your title deeds (the document which proves you own the home) and check if they are available for the buyer’s solicitor.

Your solicitor should also carry out searches with your local council. This is to ensure that there are no legal notices, orders or proposals which might prevent you from being able to sell your home.

What is a Home Report?

In Scotland, anyone selling a house must provide potential buyers with a Home Report, which should be obtained as soon as you decide to sell. There are some exceptions which apply to this, for example, brand-new properties sold off-plan do not require a Home Report.  

The Home Report consists of three documents:

• A property questionnaire completed by the seller
• A detailed survey prepared by a chartered surveyor
• An energy report to determine the home’s EPC rating

Finding an agent

A selling agent is an integral element of the selling process, as they will take over and act in your favour, making the whole experience less complicated. Your agent will write up a detailed description of your home and market it on various platforms to a large database of potential buyers. They will also deal with any enquiries, provide you with expert advice, and pass any formal offers over to your solicitor. 

Closing date and offers

Once you’ve chosen an agent and your home is on the market, you can wait for offers from buyers to come in. If several people express interest in buying your property, your solicitor will advise you to set a closing date. 

This is a deadline by which all written offers on your home must be given to your solicitor. Once you’ve set your closing date, you can then take a look at all the offers and consider which one is best suited. You do not have to accept the highest offer - or any at all - if you don’t want to. It’s best to carefully consider each one holistically, accounting for factors such as:

• The moving-in date
• Any requests or conditions from the buyer
• Their chain status
• Whether or not the buyer has a mortgage agreement in principle (AIP)

If a buyer has made a high offer but you aren’t agreeable to their conditions, your solicitor may be able to negotiate for you. 

Missives

Once you’ve settled on the right offer and have notified your solicitor, they will send a letter to your chosen buyer, this is called a ‘qualified acceptance’. 

Your solicitor and the buyer’s solicitor will then exchange a series of letters called ‘missives’. These are used to negotiate any conditions between you and the buyer until you can reach an agreement. Once both parties are happy, a ‘concluding missive’ will be written and act as a binding contract between you and the buyer.

Conveyancing and settlement

Your solicitor can begin conveyancing as soon as the deal has been agreed. This means they will go through the complex legal process which ultimately transfers the ownership of the property from you to the buyer.

Finally, the buyer’s solicitor will draw up a legal contract, known as the ‘disposition’. This is one of the last steps in the process and this document legally transfers the ownership over the buyer. Your solicitor will need to check it before handing it to you to sign. 

Right before the settlement (the day in which the buyer becomes the owner), you will need to sign the disposition and hand over the keys.

Ready to make your move?

Understanding how the property market is evolving is crucial to making informed property decisions, especially if you’re considering a move. Let’s take a look at how the market has been shaping up so far this year, why it is a good time to move, and how you can make the most of today’s market.

Property prices are stabilising

According to Zoopla’s house price index, property prices did not change between the end of 2023 and early 2024 and decreased by just 0.8% compared to the same period 12 months prior.* This could be indicative of the country’s economy stabilising, with the government freezing interest rates at 5.25% over this period.

As a stabilising market increases the number of affordable properties available, it becomes easier for buyers to find a reasonably priced home within their budget. It also creates a less frantic market, which paves the way for a smoother buying process, allowing buyers to secure their desired property with less pressure from competing offers.

Buyer demand has increased

The start of 2024 has seen a promising increase in buyer demand, with figures showing a 12% increase compared to 12 months ago.* This could be attributed to the re-appearance of sub-5% mortgage rates, subsequently improving buyer affordability. Similarly, there has been a 15% increase in new properties appearing on the market for sale since last year.**

One of the primary benefits of higher demand and supply is the possibility of quicker home sales as more individuals look for properties. The increasing supply also ensures that there is a wide variety of properties to choose from, making it easier for buyers to find their dream home.

Housing market activity has also increased

The overall number of agreed sales has continued to remain high in early 2024, indicating that buyers and sellers are becoming more aligned when it comes to pricing. With new sales up 13% in the past 12 months and the flow of homes listed for sale up 22%,* it is clear to see that sellers are feeling much more confident.

The alignment in pricing expectations between buyers and sellers allows for smoother negotiation processes, as both parties are likely to reach an agreement more quickly. This reduces stress for both parties and increases confidence that the price they have reached is fair.

How your agent can help

An experienced estate agent can help you benefit from stabilising property prices, improved buyer demand, and increased market activity by using their knowledge and expertise to help you take advantage of the market's current conditions. They possess in-depth knowledge of the market and keep up to date with the latest trends, allowing them to provide valuable insights and an accurate valuation of your current property to help you make informed decisions for the future. 

Ready to make your move?

With the Cost-of-Living Tenant Protection Act ending on March 31st, it is important that tenants and landlords alike familiarise themselves with the implications the rent cap ending will have. Let’s take a look at the changes that are set to be made and how they will affect tenants and landlords.

What will change?

The Cost of Living (Tenant Protection) Act 2022 had imposed a temporary rent cap and an eviction prohibition. These provisions were set to expire on March 31, 2023, but Scottish ministers opted to extend the legislation until September 30, 2023, and then again until March 31, 2024.*

The legislation stipulates that the act cannot be extended beyond this date. Private rents are limited to 3% up until that point, and all appropriate Rent Increase Notices issued on or before March 31st are covered by this protection.* The additional eviction protections will also expire on this date.

Subject to parliamentary approval, the rent adjudication process will be temporarily amended for a year, starting on April 1. Any tenant who wants to contest a notice of a rent increase can apply for rent adjudication after this date. In these circumstances, the First-tier Tribunal or Rent Service Scotland will determine rent using the lowest of the following three figures:

• The open market rate
• The landlord’s requested rent
• A comparator based on the difference between the market rent and the current rent

Implications for tenants

For tenants, the end of the Cost-of-Living Tenant Protection Act implies a potential increase in rental prices. The act’s provisions limiting annual rent increases will no longer apply to landlords. Because of this, tenants may experience changes in their monthly rental expenses, especially in areas with high demand and limited housing availability.

How can tenants prepare for the act’s expiration?

Here is what you can do as a tenant to prepare for the expiration of the act:

• Review your lease agreement – Carefully go through your lease agreement to understand the terms and conditions regarding rent increases. Some agreements may already have clauses addressing rent adjustments after the act’s expiration.
• Communicate with your agent – Get in touch with your estate agent to discuss any concerns or questions you may have about potential rent increases. If you wish to dispute an increase of rent, your agent can help you through the process.
• Create a budget – Assess your financial situation and create a budget that accommodates potential rent increases. This will help you make informed financial decisions moving forward.

Implications for landlords

The expiration of the Cost-of-Living Tenant Protection Act also has implications for landlords. Without the constraints imposed by the act, landlords have greater flexibility in setting rental prices. This may be advantageous for property owners, particularly in areas where rental demand is high, as they can align their prices with market conditions. They do, however, need to bear in mind the potential for tenants to dispute the rent increases.

What factors should landlords consider?

Here are the factors that you should consider as a landlord when the act expires:

• Market demand – Analyse the demand for rental properties in your area to gauge the potential for higher rental prices. Understanding local market conditions enables landlords to make informed decisions regarding pricing.
• Competitor analysis – Research the rental prices set by other landlords in your area. This will help you determine a competitive rate that attracts tenants and maximises your rental income.
• Tenant retention – Consider the impact of rental price increases on existing tenants. While higher prices may be tempting, losing reliable and responsible tenants can result in increased vacancies and potential financial losses.
• Use an experienced agent – An esteemed estate agent will help you take into consideration all of the above-mentioned factors to ensure you make informed decisions.

Contact us for help with all your rental needs