Key property terms for first-time movers in Scotland

Are you a first-time mover? There are lots of people and processes involved when it comes to moving home and it can feel overwhelming – especially when faced with unfamiliar property jargon.

We’ve put together a guide for some key terms you should understand to make the process smoother.

Vendor

A vendor is another name for a seller or a party selling a property.

Home Report and Energy Performance Certificate (EPC)

Unlike in other parts of the UK, in Scotland, the vendor must provide a Home Report before putting a property on the market. This report includes:

• A Single Survey – an assessment of the property’s condition and valuation.
• An Energy Performance Certificate (EPC) – rating the property’s energy efficiency.
• A Property Questionnaire – with details like council tax band and any alterations.

Valuation vs Market Appraisal

A Valuation is a professional assessment of a property’s worth, often conducted by a surveyor for mortgage purposes. A Market Appraisal, on the other hand, is an estimate given by an estate agent based on market conditions, recent sales, and property features. This may sometimes be referred to as a valuation but shouldn’t be confused with a RICS Qualified Valuation

Offers Over and Fixed Price

Properties in Scotland are often marketed as “offers over”, meaning the vendor is looking for bids higher than the stated price. In contrast, a fixed price listing means the first buyer to meet the asking price will secure the property.

Closing Date

If multiple buyers are interested in a property, the vendor may set a Closing Date for final offers. Bidders submit their best offers by a set deadline, and the vendor chooses the most attractive one – often not just based on price, but also on factors like mortgage status and flexibility with moving dates.

Land and Buildings Transaction Tax (LBTT)

Scotland does not have Stamp Duty. Instead, buyers pay Land and Buildings Transaction Tax (LBTT) on properties above £145,000 (or £175,000 for first-time buyers). LBTT is calculated in bands, meaning the you pay a percentage based on the portion of the price that falls within each band.

Missives

In Scotland, the legal process of buying a home involves an exchange of letters between the buyer and vendors solicitors known as Missives. When all conditions are agreed upon, the Missives are concluded, and the purchase becomes legally binding.

Conveyancing

The legal transfer of property ownership is known as Conveyancing. A solicitor handles this process, ensuring the title is clear, handling contracts, and registering the new ownership with the Land Register of Scotland.

Entry date

The entry date (or date of entry) is the agreed-upon date when ownership transfers and the buyer gets the keys. This is specified in the contract and cannot be changed without agreement from both parties.

Navigating the Scottish property market can feel daunting, but understanding these key terms will help you make informed decisions. Working with a knowledgeable solicitor estate agent will also ensure a smoother buying process.

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