Transferring title deeds in Scotland

Transferring title deeds ensures that property ownership is accurately and legally recorded. It is a necessary legal process that people undertake for various personal, financial, and legal reasons. These could range from buying or selling property, an inheritance, getting divorced, and giving a gift to a family member to tax planning, adding or removing a co-owner and refinancing. 

It’s important to understand each step of the process and the responsibilities associated with it in order to navigate the transaction confidently, no matter the reason for the transfer.  

The role of the Land Register  

The Land Register of Scotland is the official record of land and property ownership. It provides a comprehensive and accurate reflection of ownership, boundaries, and any rights or burdens affecting the property.  

Engaging a solicitor 

In Scotland, the conveyancing process is typically handled by solicitors. You’ll need to engage a solicitor who specialises in property law to guide you through the process. They will handle the legal paperwork, ensure all legal requirements are met, and protect your interests.  

Initial agreement and missives 

The process begins with the buyer and seller agreeing on the terms of the sale. These terms are set out in formal letters known as missives. Once both parties agree and sign these letters, they form a binding contract.  

Title examination  

The buyer’s solicitor will conduct a review of the title to ensure that the seller has a valid title to the property and that there are no legal impediments or encumbrances. This involves checking the Land Register for any issues such as outstanding mortgages, liens, or other claims. 

Drafting the disposition  

The disposition is the legal document that transfers ownership from the seller to the buyer. The buyer’s solicitor typically drafts this document, which includes:  

Identification of the parties involved

A detailed description of the property  

The agreed purchase price  

Any specific terms and conditions of the sale  

Settlement and exchange of documents  

On the agreed settlement date, the buyer pays the purchase price, and the seller hands over the signed disposition and other relevant documents. The buyer’s solicitor will hold the funds in a client account to ensure safe transfer.  

Registration  

The buyer’s solicitor will submit the signed disposition to the Land Register of Scotland for registration. This step is crucial as it officially records the change in ownership. The registration process involves submitting the signed disposition along with any necessary supporting documents and paying the registration fees and Land and Buildings Transaction Tax (LBTT). Once registered, the buyer receives a Title Sheet as proof of ownership. 

Land and Buildings Transaction Tax (LBTT)  

LBTT is a tax payable on property transactions in Scotland. The amount of LBTT depends on the purchase price of the property. The buyer’s solicitor will handle the calculation and payment of LBTT, ensuring compliance with tax regulations. In certain circumstances Additional Dwelling Supplement (ADS) will apply.

Due diligence  

Both the buyer and seller need to ensure due diligence throughout the process. Buyers need to ensure the property is free from legal issues, such as planning restrictions or rights of way, which could affect its use, and sellers need to provide accurate information and full disclosure about the property’s condition and any issues that may impact the sale.  

Final steps and post-completion  

After registration, the buyer’s solicitor will confirm the transfer of ownership and provide the buyer with the Title Sheet. The seller’s solicitor will ensure that any outstanding mortgages or liens are cleared.  

Transferring title deeds in Scotland is a complex but well-structured process that is designed to protect the interests of both buyers and sellers. By engaging experienced solicitors and adhering to the legal requirements, you should be able to ensure a smooth and legally sound transfer of property ownership.