A closing date is a deadline set by the seller's agent when more than one buyer is interested in a property. Each interested buyer submits one sealed offer through their solicitor by a fixed time, usually noon on a set day. The seller then chooses which offer, if any, to accept. There is no second round and no chance to see the other offers.
Closing dates are a distinctive feature of buying property in Scotland. This guide explains how they work and how to give yourself the best chance.
Step one: noting interest
When you see a property you want, your solicitor "notes interest" with the selling agent. This simply tells the agent that you may make an offer. It is free and does not commit you to anything. Noting interest matters because the agent will usually only set a closing date once several notes of interest have been received, and it ensures you are told if one is set. Without a note of interest, the seller could accept another offer without telling you.
Step two: the closing date is set
If enough buyers note interest, the agent sets a closing date. Your solicitor will be told the date and time and any requirements, such as the proposed date of entry. Closing dates are often set one to two weeks ahead, giving you time to arrange a mortgage, view again and, if you wish, commission your own survey.
Step three: submitting your offer
Your offer must be made in writing through your solicitor. It sets out the price, your preferred date of entry, what is included (for example carpets, curtains and appliances) and any conditions, such as a satisfactory survey or mortgage. A "clean" offer with few conditions and a flexible entry date can be more attractive than a slightly higher offer with strings attached.
Before you offer: have a mortgage agreement in principle, read the Home Report carefully and decide your absolute maximum. You only get one chance to bid, and there is no feedback before the deadline.
How much should you offer?
"Offers over"
Most Scottish homes are marketed at "offers over" a figure, which is a guide to the minimum the seller expects. In a busy market, homes often sell for more. Look at recent sale prices for similar properties, the Home Report valuation and how many notes of interest there are.
The Home Report valuation
Your lender will usually lend based on the Home Report valuation or its own valuation. If you offer above that figure, you will normally need to fund the difference from your own savings. Factor this in before deciding your bid.
Fixed price
Some properties are sold at a fixed price, where the seller usually accepts the first acceptable offer at that price. A closing date can still be set if several buyers offer at the same time.
What happens after the closing date?
The seller and agent review the offers, usually that afternoon. The seller does not have to accept the highest offer, or any offer. They may prefer a lower offer with a better date of entry or fewer conditions. If your offer is successful, your solicitor will usually hear the same day. If not, you will be told your offer was unsuccessful, but you will not normally be told the winning price until it appears on the property registers later.
When does the deal become binding?
An accepted offer is not legally binding on its own. The solicitors then exchange formal letters, known as missives, agreeing the terms. Once missives are concluded, there is a binding contract, and withdrawing would usually mean paying damages. Until then, either side can in theory walk away, which is why solicitors aim to conclude missives quickly.
Can you be gazumped in Scotland?
Gazumping, where a seller accepts a higher offer after agreeing to sell to you, is less common in Scotland than in England because missives are often concluded relatively quickly. It is not impossible before missives conclude, so keep in close contact with your solicitor and respond promptly to any requests.
Tips for success at a closing date
- Note interest early through your solicitor.
- Get a mortgage agreement in principle in place.
- Be flexible on the date of entry if you can.
- Keep conditions to a minimum.
- Consider an unusual figure, such as £235,150 rather than £235,000, which can edge out round-number offers.
- Set a maximum and stick to it.
For a breakdown of tax and fees once your offer is accepted, see our guide to the cost of buying a house in Scotland. To find an experienced solicitor, compare the leading conveyancing solicitors in Glasgow.
Frequently asked questions
What does closing date mean when buying a house in Scotland?
It is a deadline, usually noon on a set day, by which every interested buyer must submit one sealed offer through their solicitor. The seller then chooses which offer to accept.
Does the seller have to accept the highest offer at a closing date?
No. The seller can accept any offer, or none. They may prefer a lower offer with a better date of entry or fewer conditions.
What does noting interest mean?
Your solicitor tells the selling agent you may make an offer. It is free, commits you to nothing and means you should be told if a closing date is set.
Can I find out what other people offered?
Not before the deadline. Offers are sealed. The final price usually becomes public when the sale is registered.
When is a house purchase legally binding in Scotland?
When missives, the formal letters between the solicitors, are concluded. An accepted offer alone is not binding.
Can I offer more than the Home Report valuation?
Yes, but your lender will usually lend based on the valuation, so you would normally need to fund the difference from savings.
Conclusion
So, what is a closing date when buying a house in Scotland? It is a one-off deadline for sealed offers, set when several buyers note interest. You get one chance, the seller can choose any offer, and the deal only becomes binding when missives are concluded.
An experienced solicitor makes a real difference. Compare the leading conveyancing solicitors in Glasgow.