If you’re house hunting in Scotland, you may have come across the term closing date. It’s a uniquely Scottish part of the property process and can often take buyers by surprise, especially those new to the market or coming from other parts of the UK. In this article, we’ll discuss what a closing date means and how it impacts your offer.
What is a Closing Date?
A closing date is typically set when a property has attracted significant attention and multiple potential buyers are seriously interested in purchasing it. It’s the date and time by which all formal offers must be submitted. Think of it as a sealed bid auction. You won’t know what anyone else is offering, and all bids are opened simultaneously once the deadline passes.
How Sellers Decide Which Offer to Accept
At the closing date, the seller’s solicitor opens all the offers and presents them to the seller. While price is important, other factors also play a big part. These can include whether the buyer already has mortgage approval, whether they need to sell another property first, and whether their offer is subject to conditions like a satisfactory survey.
It’s important to understand that the seller doesn’t have to accept the highest offer — or any offer at all. If none are suitable, they might continue to market the property or consider other selling options.
Do All Properties Go to a Closing Date?
No, not every sale goes to a closing date. Even if multiple people have noted interest, the seller can still accept an offer at any point if they choose to. That’s why it’s essential to move quickly and take advice from a solicitor early on.
The Legal Framework Around Closing Dates
Solicitors in Scotland must adhere to rules set by the Law Society of Scotland to ensure that everything is handled fairly. For example, once a solicitor confirms that an offer will be accepted, they cannot switch to another unless the original deal falls through. This helps prevent gazumping. Gazumping is where a seller accepts a better offer at the last minute. This is more common elsewhere in the UK.
Solicitors must also make sure that any conditions attached to an offer are clearly stated. If a buyer later attempts to change terms for reasons not specified in the original offer, the solicitor may be unable to continue acting on their behalf.
Can You Submit a Late or Changed Offer?
Generally, offers can’t be submitted or changed after the closing date unless the seller’s agent allows it. If your offer is not accepted, your solicitor can still let the agent know you’re interested in case the winning offer falls through. However, they must follow strict rules about how and when they can revise your offer.
Make Sure You’re Ready in Time
If you’re thinking of offering for a property at a closing date, don’t leave it to the last minute. We recommend contacting us as early as possible. Ideally, get in touch at least the day before the deadline. This allows us to make sure everything is in place. Solicitors cannot act for more than one party in the same transaction, and availability can be limited.
Contact Pomphreys Solicitors
Found a property you love? Don’t delay. Get in touch with our expert conveyancing team today to ensure you’re prepared to act when the time comes. We’re here to help you every step of the way.
