Page 18 - January 2024
P. 18

PROPERTY ADVICE


          Secure a sale in Scotland, with 20% fewer
                               sales collapses


                    ESPC reveals that sales collapse far less frequently
                           when using a solicitor estate agent.



           uying a property can be a nerve-wracking   are  incredibly  in-depth  and  can  experience   “Solicitor  estate  agents,  such  as  those   your property from the market and honour the
           experience, but especially if your property   complications,  generally,  the  conveyancing   represented by ESPC, also help to make sure   verbal and written agreements of the initially
      Bsale  or  purchase  collapses.  However,   process is widely considered smoother in   the process runs smoother, and they are held   accepted offer – so your purchase as a buyer
       when you use a solicitor estate agent, you can   Scotland due to a variety of factors – one of   to  high  standards  to  ensure  that  their  client   should  be  more  secure,  which  can  only  be
       be reassured that you’re in safer hands.  them being the lower probability of your sale   receives the best possible advice and service.   good news for sellers. In fact, these codes of
                                            falling through.                                A secure, supported buyer is less likely to pull   conduct are so well enforced that solicitors are
       Recent research from Quick Move Now found                                            out  of  a  sale.  Alongside  this,  solicitor  estate   guided to advise their client to instruct another
       that during July-September 2023, one in four   “The  Scottish  conveyancing  system  greatly   agents  make  offers  on  behalf  of  their  client,   solicitor  should  they  wish  to  accept  an  offer
       (27.3%) property sales in England fell through,   reduces the chances of property sales failing,   and therefore can do their own due diligence,   that  comes  in  after  an  initial  offer  has  been
       due to a variety of factors including gazumping,   with  the  missives  concluded  much  earlier  in   which reduces the risk of complications arising.   accepted.”
       difficulties  securing  a  mortgage  and  buyers   Scotland and those in the process being held   By  contrast,  if  a  client  offers  directly  to  an
       getting ‘cold feet’.                 to a penalty if they pull out of the sale after   estate  agent,  they  could  be  anybody,  in  any   ESPC’s membership of over 140 solicitor estate
                                            that  point.  By  contrast,  in  England,  buyers   financial  position;  there  is  no  guarantee  that   agency  firms  are  guided  by  the  Law  Society
       By  contrast,  just  8.7%  of  properties  for  sale   and  sellers  are  under  no  legal  obligation   a buyer will be vetted prior to the offer being   of  Scotland  throughout  their  practice,  to
       with  ESPC  during  the  same  timeframe  went   to  continue  with  the  sale  process  until  the   made,  and  there  may  be  issues,  financial  or   help  ensure  successful  sales  and  purchases
       back onto the market – that’s around one in 12.  exchange  of  contracts,  which  often  happens   otherwise, as you proceed.   wherever  possible.  In  addition  to  this,  many
                                            just  days  before  the  official  completion.  In                                    of ESPC’s member firms are signed up to the
       Paul  Hilton,  CEO  of  ESPC,  explains:  “If  you   Scotland,  we  are  less  likely  to  see  property   “For sellers, using a solicitor estate agent can   ESPC Charter, which holds firms to even more
       have friends or relatives south of the border,   chains too, although this is slightly growing in   also be beneficial. Solicitor estate agents will   rigorous standards, so that customers can feel
       you may have heard them profess that buying   frequency, with more offers coming in ‘subject   establish any issues upfront with the property   assured  they  are  receiving  the  best  service
       a  home  is  ‘so  much  easier’  in  Scotland  than   to  sale’,  according  to  increasing  numbers  of   when  selling,  but  with  estate  agents,  sales   possible  as  they  make  the  biggest  decisions
       in  England,  where  the  conveyancing  system   firms. The more transactions that are involved,   can  fall  through  as  the  solicitor  is  often  not   and likely, purchases, of their lives.
       differs  greatly  to  ours.  While  both  systems   the higher the risk of the sale collapsing.   instructed  until  a  sale  is  agreed.  Only  then
                                                                                            will  some  problems  come  to  light,  such  as
                                                                                            defective  titles,  boundary  or  planning  issues,
                                                                                            or even probate issues, which a solicitor estate
                                                                                            agent could iron out at the first hurdle.

                                                                                            “Gazumping is common in England – whereby
                                                                                            a sale collapses when a seller decides to pull
                                                                                            out of the existing sale to accept a later, higher
                                                                                            offer. This is rare in Scotland, especially when
                                                                                            choosing to use a solicitor estate agent to sell
                                                                                            your property. Solicitor estate agents are held
                                                                                            to certain codes of conduct which means that
                                                                                            while your sale isn’t legally binding while the
                                                                                            missives  aren’t  concluded,  they  will  remove

   18  |  espc.com                                                                                                                                             espc.com  |  19
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