ESPC Jargon Busters: Conveyancing

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16th August 2022

In our Jargon Buster series, we break down the terminology of the property industry to help you feel confident and in control of your home-buying journey.

You can read the previous Jargon Buster features here.

In this article, we’re discussing 'conveyancing', and what it means when buying or selling a property in Scotland.

What is conveyancing?

The legal element of a property purchase or sale is known as conveyancing. It is basically how the contract is created which transfers the ownership of a property from one person to another. This is done by a series of letters being exchanged, commonly known as missives. When the missives are concluded, the transaction becomes legally binding on both the seller and the purchaser. After missives have concluded, the seller is legally bound to transfer ownership to the buyer – if they pull out, the buyer can claim damages. Likewise, if for any reason, the purchaser cannot complete the transaction, they are liable for damages to the seller. However, a transaction falling apart following conclusion of missives is a very rare occurrence.

How long does the process of conveyancing take?

The process of either buying or selling properties can normally be completed within four to nine weeks from the moment of offer being made to completion. However, it can take longer in some cases – for example due to the number of parties involved in the chain or if the purchaser is taking a mortgage over the property. Your solicitor will generally give you an estimate of how long the process will take after your initial meeting but you should prepare for the possibility of delays.

Caitlin Keegan, an associate at Gillespie Macandrew says: “The legal language of a transaction can make the process much more stressful for a purchaser or a seller. However, your solicitor is there to simplify the jargon and help you to understand what is happening. I always tell my clients that I would much rather they ask me anything they are unsure about rather than worry. Often a good chat can help work through any niggles or concerns you may have.”

Note of Interest

If you are buying a property in Scotland you may be asked to if you want to ‘note interest’ in the home. This is a way of telling the seller’s estate agent that you might be interested in submitting an offer on the property. It's important to say that a note of interest isn’t legally binding rather it is indicating to the seller that a purchaser is interested. In turn, the purchaser is then usually kept up to date on any Closing Date or progress with the property. It is important to note that a seller can accept an offer from any party even if there are other Notes of Interest before a Closing Date is set.

Closing date

For solicitor or estate agent firms, Law Society of Scotland guidelines state that, if a seller’s solicitor/estate agent decides to set a closing date, they have to get in touch with everyone who has noted interest to let them know about the closing date and give them an opportunity to submit an offer at the closing date.

In Scotland, a closing date is the set time and date given for all interested parties to submit their best and final offer on a property they'd like to purchase. All bids are 'sealed bids' - which is to say, if you are bidding at a closing date, you will not know how many other bidders there are or what their offers look like. The selling agent will unseal the bids after the set time has passed on the closing date, and share these with the seller, who will then choose their preferred offer. A seller will often choose the highest offer, but this is not always the case - so it is always worth making your bid as attractive as possible, by highlighting your status as a buyer and being prepared to be flexible or to move quickly.

Only you can decide what to offer at a closing date, as this will depend on your budget, affordability and what you are happy to pay for the property. However, your solicitor estate agent can advise on the selling prices of similar properties in the area, and offer insight into the current market, to help you make your final decision.

Qualified acceptance

When you have had an offer accepted on a property, the seller’s solicitor will discuss the terms of your offer with the seller, and take instructions to issue a formal acceptance letter, which confirms the agreed price, date of entry and any requested amendments to the written offer. This is called a ‘qualified acceptance’, and your solicitor will explain its terms to you.

Conclusion of missives

After you’ve had an offer accepted, the conveyancing process will begin. If your offer is verbally accepted, your solicitor will discuss the acceptance with you and negotiate on your behalf with the seller’s solicitor.

The offer, acceptance, and any subsequent letters, which are intended to be part of a legal contract, are known as the ‘missives’.

Before concluding missives, the purchasing Solicitor will also check the title deeds and searches to ensure that the Property has a good and marketable title. Both the purchaser and seller's solicitors will work to resolve any title issues and any points of concern in the transaction. Your solicitor should explain these points in full as the transaction progresses to ensure you are happy and have a good understanding of the process.

When the final acceptance letter is issued, missives are said to be ‘concluded’. As mentioned above, this means that the purchaser and seller have entered into a legally binding contract and cannot withdraw from it without penalty.

Your solicitor will advise you when the missives are concluded and send you a copy of the full contract.