Offers

What is an offer?

In Scotland, an “offer” refers to the formal written proposal made by a potential buyer’s solicitor to the seller’s solicitor. This proposal outlines the terms under which the buyer is willing to purchase the property, including price, date of entry, and any other conditions or stipulations.

Once the seller’s solicitor responds to the offer and there’s a back-and-forth negotiation (usually through a series of letters, known as “missives“). Once both parties agree on terms, the missives are “concluded.” This means the agreement to buy and sell the property becomes legally binding. If either party backs out without a legitimate reason (as per the agreed terms in the missives), they might face penalties.

How do I make an offer for a residential property in Scotland?

Properties in Scotland are often marketed with an “offers over” price. This means the seller is indicating a minimum price they’d like to receive but is expecting offers above this amount.

To make an offer for a property, you tell your solicitor what you would like to offer for the property as well as any conditions you would like to attach to your offer and. Your solicitor will send you a draft of the offer and, once you have checked it, you can instruct your solicitor to send it to the sellers solicitor.

Offers can be made in any format but are now commonly made in the form of the Scottish Standard offer using the Scottish standard Clauses. This format has several benefits and increases the likelihood of your offer being accepted quickly.

What happens after I make an offer?

What happens next will depend on whether a closing date has been set for the property or not. If no closing date is set then the sellers solicitor will respond with one of three possible responses

In situations where there’s a lot of interest in a property, sellers will set a “closing date” for offers. Prospective buyers have to submit their best offers in sealed envelopes (known as sealed bids) by this date if they want to purchase the property.

After the closing date, the seller’s solicitor will open the offers the seller then chooses the most attractive offer. This may not always be the highest in terms of price; other factors like the buyer’s position or specific conditions might influence the decision. Note that the seller is not under any obligation to accept any of the offers

When is my offer accepted?

Your offer is considered accepted and missives (the contract of sale) are concluded when you receive either a straight acceptance to your first offer or a final acceptance following an earlier qualified acceptance from the sellers solicitor.

For a potential buyer in Scotland, it’s crucial to understand this process and work with a solicitor experienced in Scottish property law. They’ll guide you through making an offer, ensuring your interests are protected, and helping you navigate the unique nuances of the Scottish system.

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