What is my Solicitor talking about?

If you want to buy or sell a property in Scotland, you will need a conveyancing solicitor to act on your behalf. During the conveyancing process there will be terminology used which may not be familiar to you.  Here is an explanation of some commonly used terminology.

What does conveyancing actually mean?

Conveyancing is the legal process of transferring ownership from the seller to the purchaser.

What is a Mortgage Agreement in Principle, and do I need one?

If you need to take out a mortgage to fund your property purchase, then you should seek to obtain an ‘Agreement in Principle’ which can also be called a ‘Decision in Principle’, ‘Mortgage in Principle’ or ‘Mortgage Promise’. This is a certificate or statement from a lender confirming that ‘in principle’ they will lend you a certain amount. It is not a binding contract, but serves as an indication that, based on an initial assessment of your financial circumstances, the lender is prepared to consider granting you a mortgage. In essence, it confirms your borrowing capacity and increases your credibility with sellers.

What is a Home Report, and do I need to read it?

A Home Report is a document which is required when selling a property.  It consists of 3 parts: a single survey, an energy performance certificate and a property questionnaire. The seller of a property must provide potential purchasers with a copy of the Home Report when requested. It is up to the seller to arrange and pay for the Home Report to be produced.

The single survey contained within the Home Report contains information on the features and condition of the property and each aspect looked at is given a category rating of 1,2, or 3.  Category 1 indicates no immediate repair is needed. Category 2 indicates repair, or replacement will be required in the future and estimated costs should be obtained prior to purchase. Category 3 means urgent repairs or replacement are required immediately and estimated costs should be obtained prior to purchase. The valuation contained in the single survey is extremely important as it sets a benchmark in determining how much to offer for the property.

The Energy Performance Certificate shows the energy rating of the property. A property with a low energy rating can be expensive to run and less kind on the environment. The potential cost of improvements may be something a purchaser wishes to take into account when considering how much to offer.

The property questionnaire is completed by the seller and contains details regarding the council tax band, factoring costs, current energy suppliers and more general information regarding the property.

In short, if you are a purchaser, you should definitely read the Home Report for the property you are interested in purchasing!

What does LBTT mean?

LBTT is an abbreviation for Land and Buildings Transaction Tax and is a tax payable to Revenue Scotland by the purchaser. LBTT is the replacement of stamp duty. The amount of LBTT payable depends upon the value of the property being purchased.

What is a Disposition?

A disposition is the legal document which transfers ownership of the property from the seller to the purchaser. The disposition is signed by the seller and then registered in the Land Register of Scotland.

What are missives?

Missives are your contract to buy or sell a property. Unlike some contracts which consist of just a single document, a missive contract is instead composed of various separate formal letters called missives between the solicitor for the seller and the solicitor for the buyer. Missives pass backwards and forwards between the solicitors until such time as the terms of the contract are fully agreed whereupon missives are ‘concluded’ meaning that there is a binding contract in place from which neither party can withdraw without penalty.

What does Settlement mean?

The settlement date is the date upon which the transaction is completed.  This happens when the price is paid to the seller’s solicitor in return for the title deeds and the keys. This is usually the date of entry as stated in the missives.

Whether you’re buying or selling property in Scotland, navigating the conveyancing process can feel overwhelming—especially when you’re unfamiliar with the legal terminology. At Blackwood & Smith, our experienced conveyancing team is here to guide you every step of the way, ensuring you understand your rights and responsibilities throughout the process. Contact us today.