Are you confused by some of the terminology you’ve heard getting thrown around in the Scottish Property market? Well, at Evergreen Property, we’ve decided to bust the jargon so you can get to grips with it all nice and easily. Below are the terms you are likely to come across and exactly what they mean.
Terms of Business: Written communication from estate agent/solicitor to a client at the outset which provides details of the service that the estate agent/solicitor will provide.
Offers Over: The marketing price of the vast majority of properties in Scotland. Usually 5-7% below the property valuation and some way below the expected sale price.
Fixed Price: Indicates the price that the seller expects to receive for their property. A very different strategy to Offers Over and usually indicative of a property that is struggling to generate interest.
Home Report: A copy document supplied by the property seller to a potential buyer of a property comprising:
Single Survey – an assessment by a surveyor about the condition and the value of a property
Energy Report – an assessment by a surveyor on the energy efficiency of a property
Property Questionnaire – a document completed by the seller containing additional information about the property
A Note of Interest: Verbal indication from a potential buyer’s solicitor to the seller’s agent that the potential buyer is interested in buying the property.
Closing Date: A date set by the seller when all offers for the property must be submitted. It’s important to note that not every property will go to a closing date. Only properties that have generated sufficient amounts of interest will do so. The closing date will be marked on the advertisement.
Land and Buildings Transaction Tax (LBTT): A tax payable to Revenue Scotland when you buy a property. Previously referred to as Stamp Duty tax, and still is in England.
Additional Dwelling Supplement (ADS): A surcharge tax payable to Revenue Scotland by Homeowners or Investors that are buying an additional property whilst not selling their main residence.
Qualified Acceptance: This is formal acceptance by the seller of the buyer’s offer with a list of conditions attached to the sale of the property. This is exchanged by solicitors and isn’t provided by an estate agent.
Date of Entry: The date specified in the contract for completion of the transaction. This is usually provisionally agreed when an offer is placed and accepted. It is always subject to change based on the complexity of the transaction which becomes clear in the legal stage.
Standard Security: Mortgage document signed by the buyer which gives the mortgage provider certain rights over the property.
Concluding Missives: Putting in place a contract (missives) between the seller and buyer. This is the point at which the sale becomes legally binding.
Disposition: The Title deed which transfers the property from the seller to the buyer.
If you’ve found any other terms being thrown about that you’re not sure about then please feel free to get in touch and we’ll do our best to clarify them for you!