The term ‘due diligence’ is often associated with complex commercial transactions, but it is equally important when buying or selling a home in Scotland. In residential conveyancing, due diligence refers to the legal and practical investigations carried out before ownership can be transferred.
While many of these checks are routine, they are essential to ensure that a transaction proceeds smoothly and that both parties are protected from unexpected liabilities.
Key Due Diligence Checks
Identity and Anti-Money Laundering Requirements
Solicitors are legally required to verify the identity of their clients and establish the source of funds being used in a transaction. Buyers should be prepared to provide photographic identification, proof of address and evidence showing how the purchase funds have been accumulated.
These checks are a fundamental part of the UK’s anti-money laundering regime and are mandatory for all Scottish property transactions.
Fixtures and Fittings
Sellers should clearly identify which items will remain in the property following settlement. This commonly includes carpets, curtains, blinds, white goods and garden items. The Scottish Standard Clauses and Property Questionnaire help minimise disputes by recording what is included in the sale.
Factors and Common Repairs
Where a property is managed by a factor, purchasers will want information regarding management arrangements, outstanding charges and any planned maintenance works affecting the building.
Particular attention should be paid to anticipated major repairs, as these can result in high future costs for owners.
Planning Permission and Building Warrants
Any alterations, extensions or structural changes should be supported by the appropriate planning permissions and building warrant documentation where required. Missing approvals can delay a transaction and may require retrospective applications, indemnity insurance or further investigation before settlement can take place.
New Build Warranties and Guarantees
Any NHBC warranty, specialist treatment guarantee, appliance warranty or certification for works carried out at the property should be retained and made available to prospective purchasers.
These documents can provide reassurance regarding the condition of the property and may be required by Lenders.
Government Schemes and Renewable Installations
Properties participating in shared equity schemes, Help to Buy arrangements, solar panel agreements or Green Deal initiatives may be subject to additional legal considerations. These should be identified early to avoid delays during the conveyancing process.
Common Issues That Can Delay a Sale
Unauthorised Alterations
One of the most common problems encountered during conveyancing arises where alterations have been carried out without the necessary statutory approvals.
The Home Report often highlights extensions, garage conversions or structural changes. Where documentation is unavailable, sellers may require a Letter of Comfort from the local authority or an independent assessment from a suitably qualified professional.
In some cases, remedial works or indemnity insurance may be necessary before the transaction can proceed.
Specialist Reports and Guarantees
If previous damp proofing, timber treatment or structural repairs have been undertaken, purchasers will usually seek evidence of any guarantees associated with the works.
Where paperwork cannot be located, solicitors may need to negotiate an alternative solution to satisfy the purchaser and their Lender.
Statutory Notices
A Statutory Notice issued by the local authority can impose obligations to carry out repairs or maintenance. Where a notice is in force, responsibility for the works must be addressed during the conveyancing process. It is not uncommon for part of the purchase price to be retained by the purchaser’s solicitor until the position is resolved.
Boundary Issues
In Scotland, property boundaries are determined by title deeds, Land Register plans and, in some cases, older Sasine descriptions. Discrepancies between physical occupation and legal ownership can give rise to disputes. Early investigation of title plans can help identify and resolve issues before settlement.
Failed Transactions
Parties in Scotland are generally free to withdraw from negotiations until missives are concluded. This means a purchaser or seller may walk away if timescales change, information is not provided promptly, or agreement cannot be reached on contractual terms. Once missives are concluded, however, both parties become legally bound to complete the transaction.
Preparation Is Key
Most Scottish property transactions proceed without significant difficulty. However, many delays arise because important documents have not been located or potential issues are identified too late in the process.
Seeking legal advice early, gathering relevant paperwork and understanding the due diligence process can help ensure a smoother transaction and reduce the risk of unexpected complications. Whether buying or selling, careful preparation remains one of the most effective ways to keep your move on track.
We Can Help
If you’re thinking about buying or selling a property in Scotland and want straightforward, expert advice on the process, our team is here to help.
Contact Kaur Sutherland today on 0141 611 6000
Or email info@mackaur.co.uk
We’ll guide you through every step of your move with confidence and clarity.
