HOW TO BUY PROPERTY IN SCOTLAND

OFFERS
There are two points about house valuations in Scotland which sometimes confuse buyers from elsewhere: requests for 'offers over'; and closing dates for offers.

In Scotland, most houses are advertised for sale at a price 'Offers Over £X'. This is to encourage higher bids. However, if you can't afford £X, this does not mean that you are precluded from making another, lower offer. Properties are often sold at less than the 'offers over' price, and the longer the property has been on the market, the cheaper you are likely to get it. Take the 'offers over' point only as the point at which bargaining starts.

However, you may have to offer over the price to secure a property. It is impossible to say exactly how big a percentage over you should offer, as this varies by area, type of property, and the state of the housing market at the time. Exceptional cases where houses have sold at double or more than double the asking price hit the headlines, but the vast majority will sell at a more sensible price. Your solicitor should be able to advise you on the average percentage over the asking price expected in the area at the time you are bidding.

An increasing number of properties are now being advertised for sale at a fixed price, similar to the system in England and Wales. This is partly because people from outwith Scotland are put off by offers over, and it can also make the buying of property difficult - you could find you are outbid by other buyers on a series of properties, and as you would normally get a survey on each property before you know it is yours, this can be an expensive process. An indication of the increasing popularity of the fixed price is shown by the fact that between 2003 and 2004 the number of fixed price properties advertised in Edinburgh increased by 70%.

CLOSING DATE
Where a property has excited interest from more than one prospective purchaser, the vendor might decide to hurry the process along a little by advising all those who have 'noted their interest' in the property that a closing date for offers has been set. The onus is thus shifted to the prospective purchaser(s) to make a formal offer on the property by the date set - a sort of blind auction. As in all types of auctions, offer only the amount you think that a property is worth, not the amount that you think might beat all other offers - unless, of course, you have decided that it is the only house for you, at whatever cost!

If you anticipate that a closing date for offers on a property might be set in the near future, this will not preclude you from hurrying the process along yourself by making an offer first. This is a way of shifting the pressure from purchaser to vendor. You may even be able to negotiate with the seller that you will add a premium on your offer if they agree to sell it to you without going to a closing date.

Sellers are not obliged to accept the highest offer they receive after the closing date: they may be prepared to accept a lower offer where, for instance, the buyer has not got his own property to sell and can move quickly.

NOTING AN INTEREST & MAKING AN OFFER
You must secure the services of a Scottish solicitor when buying a property in Scotland. Ensure that they are a member of the Law Society of Scotland. You would be well advised to obtain the services of a solicitor prior to making a formal offer on a property because of the complexity and the binding nature of certain contracts under Scottish law.

If you are interested in a property you have viewed, although you may not be ready to make an offer on it, you should note your interest with the seller's solicitor or estate agent. You can ask that your interest in a property be noted without employing the services of a solicitor yourself (although a solicitor would be pleased to undertake this notification for you). Notification of interest does not commit you to buy. It ensures, however, that you will be kept informed of matters such as withdrawal of the property from the market or the fixing of a closing date for offers.

Acceptance of your offer creates a legally binding contract and you will be provided with a copy of the formal offer for future reference. However, your offer can be made subject to certain conditions, and if these conditions are not agreed or met by the seller, you are no longer committed to the sale.

SURVEYS
An offer should be made only after a survey of the property has been carried out because this can affect the offer you make. Your solicitor will advise you about the reasonableness of the offer in the light of a survey's findings and will also take note of the requirement to confirm the existence of building warrants, planning permissions and completion certificates in respect of past changes to a building.

There is currently (in 2004) a 'single survey' pilot scheme underway in parts of Glasgow, Edinburgh, Inverness and Dundee. Under the single survey scheme, the seller of a property is obliged to obtain a survey of the condition of the property before the sale, and supply this to prospective purchasers. Depending on the results of this pilot scheme, it may be that the single survey will be made mandatory at some time in the future, but for the time being it is up to prospective purchasers to arrange their own surveys.