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Once your solicitor is satisfied that the due diligence is complete, the exchange deposit (usually between 15% and 25% of the purchase price) will be paid to the vendor s solicitor. Your solicitor will exchange contracts with the seller s solicitor, at which point you are legally committed to the purchase.

Completion will take place on an agreed date after exchange, and you will pay the balance of the purchase price at this time. If you have exchanged contracts on a property that is still under construction, you will not complete the purchase until the property is ready for occupation.

EXCHANGE AND COMPLETION PROCESS

PURCHASE AGREED

LEGAL TITLES BUILDING WARRANTIES

Title of a Property In Scotland the title of a property refers to the legal rights that an owner has in a property. Unlike the rest of the UK, Scotland does not have leasehold or freehold titles. Effectively all property is held under a similar structure to freehold known as Ownership .

If you are purchasing a new-build property it is likely to have a ten-year building warranty covering structural defects.

During the first two years, the builder is responsible for putting right any defects or damages to the property, and during years three to ten, the warranty provides insurance to cover the cost of putting right any damage caused by defects in specified parts of the home (usually the structural and weatherproofing parts).

If you purchase a property off-plan, the building warranty may also include deposit protection, meaning your exchange deposit is protected should the developer become insolvent prior to completion.

Once the purchase has been agreed in principle, you will need to instruct a solicitor to begin the conveyancing process.

The solicitor will prepare a legal report on the property, agree the form of the contract and undertake full due diligence. This will include but is not limited to:

ensuring that there are no issues with the title of the property

checking the access to the property and that there are no issues with rights of way

conducting local searches to determine whether there are conditions attached to the property such as tree preservation orders

ensuring the property has the relevant planning consents

EXCHANGE CONTRACTS COMPLETION

LEGAL DUE DILIGENCE