Most Common Property Questions Answered

07 December 2022

Whether you’re buying or selling a home for the first time, we know there are many questions you will have about the process – from how much it costs to sell, to how you can buy successfully in a competitive housing market.

Do first time buyers have to pay Land and Building Transaction Tax (LBTT)?

It all depends on the property’s purchase price. Right now, purchase prices of £145,000 and below do not trigger any liability for LBTT, and first-time buyers in Scotland are exempt from paying LBTT on any purchase price between and including £145,001 and £175,000.

For first-time buyers purchasing a home for above £175,000, or experienced homeowners buying their next property above £145,000, there is liability for LBTT, which is calculated proportionately, as shown below:

What are the costs when buying/selling a property?

When buying a property, the typical costs will be the conveyancing fee (which varies from firm to firm) and various outlays, which will typically be LBTT (if applicable) and registration dues for the title deed and any mortgage deed.

When selling, typical costs will be estate agency fees and outlays (which will vary from firm to firm), a conveyancing fee, for the legal work and outlays including search costs and registration dues for the discharge of any mortgage security. 

Can I place an offer on two properties at the same time?

Only if you have enough money to purchase both!

Until the missives are concluded for any purchase, you and the seller are not in any binding contract. However, in Scotland, there are rules of etiquette which solicitors operate under, which aim to make the process of offering for a property a serious commitment to the transaction, by the purchaser, if their offer is accepted. Any conditions of the purchase (such as the purchaser needing to obtain a mortgage, and/or sell an existing property) should be disclosed in any offer.

If you did want to offer for two properties at the same time (for example, if the two properties had the same closing date), you would need to decide which property you preferred, and the offer for the other property would need to make clear that it was subject to your first-choice offer not being accepted, which may not appeal to the seller. 

In this scenario, most people just decide to make an offer for the property they like best.

How do I make an offer on a property?

You should contact a TSPC Member Firm as early as you can in the purchase process, this allows you to obtain a quote for their services, and find out who you should contact from there when you have decided that you want to make an offer on a property. 

Before you reach that stage, you should find out what information your chosen firm requires from you. For example, in most cases, if you need a mortgage to purchase the property, you will be expected to have a mortgage agreement in principle from a named mortgage lender, otherwise that will need to declared when the offer is submitted and may well prejudice your offer in the eyes of the seller. 

In the current market, the key is being able and prepared to move quickly. In many cases, even if you are keen to submit an offer, there could be other interest in the property, which means that all you can do is ask you solicitor to submit a note of interest for you and wait till a closing date is set, when all parties interested will be invited to submit their best offer.

Why are properties selling so quick? And how can I buy successfully in a competitive market?

Luckily, things are returning to some sort of normality. Many people are reconsidering their living arrangements and current location; due to a change in their working setups. However, there is a lack of stock on the market; people are reluctant to put their current property on the market until they have successfully offered for their next home, resulting in a lack of stock.

During the current climate, many people can be offering for one property, which is good news for a seller but difficult if you are purchasing. The best advice is to seek and take advice from a solicitor, they will have the best knowledge of the current market conditions and may be able to provide other valuable insights from information from the estate agent and the Home Report. 

Also, consider flexibility when looking at types of property and areas to purchase in, this may give you a better chance at having an offer accepted.