These are formal letters which pass between solicitors. When all the terms are agreed then the purchase is "concluded".
There is now a standard form of contract for property purchases and sales in Edinburgh and Glasgow (and separate forms in other areas) which is used by many firms of Solicitors. You can see a copy of the Standard Clauses which will probably be used in your purchase and/or sale by following this ????. We will use the Standard Clauses in any purchase on your behalf. If you are selling your property it is possible that the purchaser may not use the Standard Clauses in which case we will send you a copy of the relevant contract letters and discuss the terms of these with you in detail. The Standard Clauses are hopefully self explanatory however if you have any questions regarding the terms of the Standard Clauses please advise us so that we can discuss them with you. If you are purchasing a property please be aware that by instructing us to put in an offer for a property (or if the offer is "subject to survey" and you subsequently instruct us to withdraw the “subject to survey” clause following your receipt of a verbal or written survey report communicated to you via ourselves) you must be willing to be legally bound to purchase the property. It is possible that the seller`s solicitor may issue a formal letter accepting the offer which would immediately result in a legally binding contract. You should therefore not instruct us to put an offer in for a property unless you are willing to be legally bound to the purchase and unless you are satisfied that you will be able to finance the purchase.
Accordingly, it is essential that you understand the position and that you are satisfied that you will have no difficulty in obtaining mortgage finance or concluding your house sale in time for the date of entry. If you should fail to get a concluded bargain or obtain your mortgage finance in time, or at all, you will be liable to pay damages to the seller of the property. These damages will include any losses which the seller makes as a result of your failure to complete on time and will certainly include interest at the rate of at least 4% per annum on the purchase price. If you fail completely to make the payment, you will also be liable for other substantial damages. This is a situation you do not want to find yourself in.
Please note- you do not have to sign anything at this stage, you will be bound by our signing the letters on your behalf. We will check with you throughout the negotiation of the missives and will give you a final opportunity to withdraw from the transaction before missives are concluded.
The Title Deeds will be delivered to us and these will be examined to ensure that they contain no difficulties for you or your lending institution, we will prepare the documentation to transfer the property into your name and approve draft documentation by the Selling Solicitor to discharge any loan that the Seller may have over the property. At this stage we will normally also be acting for your lending institution and so therefore we may be required to make further enquiries with regard, for example, to alterations made to the property, even if these seem perfectly acceptable to you. The reason for this is that the lenders wish to have a property which they could sell without any difficulty in the highly unlikely event that they will be required to enter into possession upon your failure to pay the loan.
Having completed all necessary checks we will report to your lenders, prepare the Standard Security and Stamp Duty Land Tax documentation for your signature and then obtain the funds to purchase the property. We will discuss with you any sums which you are proposing to pay from cash and the arrangements and timing of any payments due. We will pay over the price in return for the documentation transferring the property into your name, the keys to the property and the title deeds.
Subsequent to the purchase we may be required to forward the registered Deeds to your lending institution together with the rest of the Title Deeds in due course. In some cases, lenders do not wish to hold the documentation and we will keep it here for you. Normally you will not receive copies of the Title Deeds.