What is an interest note in the Scottish property market?

If you are considering buying a property in Scotland you may be asked if you would like to ‘note an interest’ in the property and you may be wondering what a note of interest is, why you would want to note an interest and who can submit a note of interest for you.

A note of interest is a way of trying to ensure that you have the opportunity to make an offer on a property for sale in Scotland. In the simplest sense, it’s a way of telling the seller’s real estate agent that you might be interested in submitting an offer on the property. The act of registering your interest in a property is called ‘evidencing the interest’. So what is the effect of doing this and who can notice the interest?

Interest notes are not legally binding. It is important to note that the position is different depending on whether the property is sold by a notary/real estate agent or a real estate agent who is not a notary. For more information on the difference between the two, watch this video. Non-solicitor estate agents are not bound by the rules of the Law Society of Scotland, so the way they deal with notes of interest may differ from that of solicitors/estate agents.

What are the guidelines for Notes of Interest?

For law firms/estate agents, the Law Society of Scotland guidelines state that if a seller’s solicitor/estate agent decides to set a closing date, they should contact all persons who have expressed a interest in informing them of the closing date and giving them the opportunity to submit a bid on the closing date. A closing date is a time and date, chosen by the seller’s real estate agent, at which all offers on a property must be submitted, in writing, by the solicitor of any interested party. Potential buyers submit their offers on time and without knowing what other parties are offering. The more interest ratings there are on a property, the more competition is perceived between potential buyers and this may cause some buyers to pay more than they would otherwise have to pay to be sure of securing the property.

Do I need a lawyer to make a note of interest?

You can try noting the interest in a property yourself, but most solicitors/estate agents will insist that a note of interest be submitted on your behalf by a law firm.

It is best to submit a note of interest through your solicitor, particularly if the property for sale is being marketed by a law firm. It is more likely to be taken seriously and it means that, if a closing date is set, you already have a lawyer in place to advise you on your purchase and submit an offer for you.

Does a note of interest guarantee me the opportunity to make an offer?

No, a note of interest does not guarantee that the seller will not sell to someone else in the meantime. If the seller wishes to sell the property to someone else, they are within their rights to do so even if there are other parties who have expressed an interest.

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If you are considering selling your home or investment property, contact MOV8 by calling 0345 646 0208 (Option 1) or emailing [email protected] to arrange a free valuation of your home or to obtain a complete and transparent ventilation. cost of selling your home.

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