In Scots Law, missives are a series of formal letters exchanged between the seller’s solicitor and the purchaser’s solicitor, which when concluded (see more below) ultimately form a contract for the sale and purchase of a property.
Missives set out conditions such as purchase price, date of entry and any items of furniture to be included. The Missives incorporate the Scottish Standard Clauses – a set of standard conditions designed to cover the fundamental aspects of buying and selling a home..
Missives cannot be concluded until both parties are content with all terms. Once Missives are concluded, a legally binding contract is formed.
Missives do not have to be signed by the buyer or seller. The Solicitor will deal with Missives on behalf of their respective clients.
A Step-by-Step Guide to Missives
Step 1 – Purchaser:
The purchaser’s solicitor will produce and submit a written offer. This is sometimes after a verbal offer has been agreed. This is the first missive. This will lay out the purchaser’s position, i.e. whether they require to sell their property before purchasing, require a mortgage, or if there is a particular timeframe in which they aim to work to, as well as the purchaser’s details and the price to be paid. This is then sent to the seller’s solicitor.
Step 2 – Seller:
The seller’s solicitor will discuss the written offer with the seller and produce a missive which formally accepts the offer but often qualifies some of the terms of the original offer, making this specific to the property being sold. This Missive is known as a Qualified Acceptance. This gives the seller the opportunity to delete/alter any unsuitable terms and include terms of their own.
Step 3 – Purchaser:
At this stage the purchaser’s solicitor may respond further qualifying terms. The two parties can produce as many formal missives as are required to come to an agreement. In practice however, these terms are generally negotiated by email in advance, and the formal missives will include terms that the other party has suggested will be acceptable. This allows for the missives to be kept to a minimum.
Alternatively, the purchaser may be satisfied with the terms laid out and produce a concluding missive.
Conclusion of Missives
The term ‘conclusion’ is often thrown around in conversation about property. But what is the conclusion of Missives in Scotland?
Once terms are agreed, a concluding missive is issued. This is a formal letter accepting all terms of the contract. Conclusion of missives is the point at which the contract becomes legally binding. This means that both parties are obligated to buy/sell the property on the terms provided, and that neither party can unilaterally withdraw without potential penalties.
Late Conclusion of Missives
Until recently, missives would commonly conclude weeks before the date of entry. Today it is common practice for missives to conclude just days, or sometimes hours, before the keys are handed over.
Before concluding missives, both the seller and purchaser must be satisfied that they can carry out their obligations under the contract. It is important for both parties to ensure that all required paperwork is to hand, and that all funds required for a purchase will be available in time. Oftentimes conclusion is delayed due to the mortgage application, or a hold up elsewhere in the long chain of transactions. Unfortunately, this is often out of the Solicitor’s control.
Key Points
- Missives are letters between solicitors that make up the contract for the sale and purchase of a property.
- Missives do not have to be signed by the seller or purchaser.
- There is no legally binding contract in place until missives are concluded.
- The conclusion of missives is often delayed due to factors out with the conveyancer’s control.
Whether you are buying or selling your first home or you have moved many times before, our expert conveyancing team are here to support you every step of the way. Contact us today on 03330 430150.
