CLIENTGUIDE

TOTHE

SCOTTISHSTANDARDOFFER

AND

SCOTTISHSTANDARDCLAUSES(EDITION2)

CONTENTSSECTION1INTRODUCTIONPART1-ThePurposeofScottishStandardClausesPART2-AScottishMissivesChainSECTION2THESCOTTISHSTANDARDOFFERSECTION3THESCOTTISHSTANDARDCLAUSES(EDITION2)SECTION4EXPLANATIONOFTHESCOTTISHSTANDARDCLAUSES(Edition2)IssuedbytheEdinburghConveyancersForumandtheGlasgowConveyancersForumon

behalfoftheScottishStandardClausesWorkingParty

SECTION1INTRODUCTIONPART1-ThePurposeofScottishStandardClausesThe purchase of a house is the most important single financial transaction most clientsundertake.Itcanbeastressfulprocessforbothbuyerandseller(andsometimesfortheirSolicitorstoo!).TheadviceandassistanceofaSolicitorexperiencedinhousepurchaseandsaleandconveyancingisabsolutelyessential.AnofferforheritablepropertyinScotlandrequirestobeinwritingandthereisnobindingorenforceable contract until an offer or a qualified acceptance of an offer ismetwith by astraightacceptanceinwriting.Up to the 1970’s, Missives comprised around five clauses. However, cases and otherdevelopments in the lawmade theprocessmore complicated.Offers expanded greatly insizeandcomplexity.Itwasrarelypossibleorwisetogiveanunconditionalacceptanceofanoffer. In additionmost individual firm’soffers tended tobebasedona “wish list”of bestpossibleoutcomesforthepurchaser.TherealityhoweverwasthatqualifiedacceptancescuttheofferdowntosizeandtherethenemergedawordingthatmostSolicitorswould“settlefor”. TheScottishStandardClauseshavebeenbasedonthe“settledfor”positionofwhatmostpractitionersusuallyaccepted.TheaimisthatneitherSolicitorsnortheirclientsshouldhavetogothroughtheexistingpainfulprocessofofferandnumerousqualifiedacceptances.The offer, any qualified acceptances and the final acceptance together are called “theMissives”.WhenfinalagreementisreachedtheMissivesaresaidtobeconcludedandtherethenexistsalegallybindingcontract.UntilthatpointboththeSellerandthePurchasercanbackoutorwithdrawfromnegotiations,withoutwarning,reasonorpenalty.WhenMissivesareconcluded,eitherpartycansuetheotherintheeventofabreachbyoneorthepartiestocarryouthisorherpartofthebargain.OneofthegreatestadvantagesoftheScottishsysteminthepastwasthespeedwithwhichMissiveswere concluded.The system,whereeachSolicitorhadanownstyleofoffer thatbecamelongerandlongerandmoretechnical,slowedthisprocess.AccordinglyoverseveralyearsvariousregionalareascreatedStandardClausesfortheirarea.Nowasinglestylehasbeen adopted by most areas in Scotland called the Scottish Standard Clauses. The offerappears in Section2anddefines thePurchaser, theProperty, thePrice, theDateof Entry(whenyouobtainyourkeys)anddetailsofanymoveable items includedinthesale.SomemoveableitemsarealreadycoveredbyClause1oftheStandardClausesundertheheading“Fixtures,FittingsandContents”.TheoffermakesreferencetotheScottishStandardClauses(Edition1)andincorporatesthemasconditionsoftheoffer.Guidelines issued to Solicitors request that changes should be made for valid reasons ofsubstancee.g.makingtheoffersubjecttosurveyandnotforthereasonsofstyle.The aim is to conclude the Missives with either a straight acceptance of the offer orhopefullynotmorethanonequalifiedacceptancebeforeafinalacceptance.AnofferintheStandardstylecouldintheoryreceiveastraightacceptance.Accordinglypurchasingclientswill have to be completely “upfront”with the seller andwill need to statewhether theiroffer is subject to survey or a loan or conclusion of Missives for the sale of their ownproperty. Complete frankness is required as a Purchaser may find himself bound to a

contractthinkingtheoldmethodwouldallowhimmoretime.FromaSeller’spointofviewthereisnowgreatertransparencyregardingthePurchaser’sposition.Thepurposeof thisGuide is to explain the various clauses so thatbothhousePurchasersandSellersunderstandtheirrightsandobligations. It ishoweveronlyaguide. IfadisputearisesastothemeaningoftheMissivesyourSolicitor istheexperttowhomtoturn. Thisformofofferandthestandardclausesaredesignedforusewithdwellinghouses.ScottishStandardClausesarea tool toassistmorestraightforwardconclusionofMissives.SpeedandeaseofconclusionofMissivesandclauseswithwhichaSolicitorandhisclientcanbecomefamiliarareenormousbenefits.PART2-AScottishMissivesChainOneofthemainaimsoftheScottishStandardClausesistoconcludetheMissives(contractforsaleandpurchase)assoonasispossiblewitheitherastraightacceptanceoftheofferorhopefullynotmorethanonequalifiedacceptancebeforeafinalacceptance.Duetomattersthatareoutwiththecontrolofthelegalprofessionthataimisnowonlyanaim and not realistic at present. One of the main problems with early conclusion of theMissivesisthatlendingdecisionsareveryslowandloaninstructionsarenotbeingprocessedwithspeedbylenders.BuyersandtheirSolicitorsarewaryofconcludingMissivesuntiltheyknow the buyer has an offer of loan or at least an offer of loan in principle. Prior to therecessionbuyerswouldoftenactonthestrengthofa“nod”fromthelenderbutwhentherecession came some “nods” were withdrawn because of new lending criteria, creatinguncertainty and lack of confidence by buyers to predict if they will be granted a loan.SolicitorsnowfinditnecessarytourgecautiononbuyerstoobtainadefiniteofferofloanoranofferofloaninprinciplebeforeconcludingMissives.Another causeofdelay is thatbefore the recessionpurchaserswere “purchasedriven” tobuythepropertytheywantedandthentoselltheirownhouseknowingitwouldverylikelysell without a problem. Now,most buyerswill not wish to take that chance andwill notconcludeMissivesforapurchaseuntiltheyhavesoldtheirownhouse(“saledriven”).ThesefactorshaveledtoaScottishMissiveChain.Hereishowsuchachainworks.Apurchaser (P1) cannotconcludeMissiveswith theSeller (S1)becauseP1hasnoofferofloan.S1cannotenterMissivesforpurchasewithSeller2tillhissaletoP1isconcludedandS1’sofferofloanissuedandsoonupthechain.StandardMissivesarestillhelpfulasifanofferissubmittedintheScottishStandardClausestyleitisnowpossiblethatyoucouldreceiveastraightacceptance.Thishasforcedbuyerstobemore“upfront”witha selleras thebuyerneeds toaddclauses tohisOffer to statewhetherhisofferissubjectto(1)survey(2)aloanor(3)conclusionofMissivesforthesaleoftheirownproperty.TheseclausesbeingnonstandardareeasytospotintheOffer.TheyensurefranknessbyaPurchaserwhocannotriskconcludingMissiveswithoutinsertingthese additional and conditional clauses. Froma Seller’s point of view there is nowmuchgreatertransparencyregardingthePurchaser’spositionandwhattheproblemis.Scottish StandardMissives assistmore straightforward conclusion ofMissiveswith few ofthe delays caused under the old system by non standard missives. Speed and ease of

conclusionofMissivescanfollowifandwhenabuyerhashisofferofloanandasaleofhisown house tied up. Standard clauseswithwhich both the Solicitor and client are familiarremainenormousbenefits.SECTION2THESCOTTISHSTANDARDOFFERThisisthestyleofOfferspecifiedintheDeedofDeclarationbyRossAlexanderMacKaydated14andregisteredintheBooksofCouncilandSessionon15bothdaysofMarch2016.DearSirsForthepurposesofthisofferandtheScottishStandardClauses(Edition2)aftermentioned:ThePurchasermeans[Clickhere]residingat[Clickhere]The Property means [Click here] together with any garden, carport, garage, parking spaceand/oroutbuildingspertainingtheretoandallotherpartsandpertinents.ThePriceis[Clickhere]POUNDSSTERLING(£[Clickhere]),andTheDate of Entry shall be [Click here] or such other date as may be mutually agreed inwriting.The Purchaser hereby offers to purchase from your client (hereinafter referred to as “theSeller”)thePropertyatthePriceandupontheconditionscontainedintheScottishStandardClauses(Edition2)specifiedintheDeedofDeclarationbyRossAlexanderMacKaydated14andregisteredintheBooksofCouncilandSessionon15bothdaysofMarch2016anduponthefollowingfurtherconditions:-(First) ThePricewillincludethefollowingadditionalitems(ifany):[Clickhere](Second) This offer unless earlier withdrawn is open for verbal acceptance by -pm

(inserttimeanddate)withwrittenacceptancereachingusnolaterthan-onthe–(inserttimeandday)workingdayfollowingthedateofthisofferandifnotsoacceptedshallbedeemedtobewithdrawn.

(Third) Thisofferandanycontracttofollowhereonareentirelyconditionalupon(a)a

satisfactory survey report and (b) a satisfactory valuation report beingobtainedbythePurchaserinrespectoftheProperty.ThePurchaserandhislendersshallbethesolejudgesastowhatconstitutessatisfactoryreports.

YoursfaithfullyNote:WithreferencetoStandardClause7.1.3itisrecommendedthatuseismadeofthenewstyleLettertoFactors/ManagingAgentsnowavailableonthePSGwebsitewww.psglegal.co.uk/residential.ThisrequestsfullerinformationandisinaformatapprovedbyPropertyManagerAssociationScotland.

SECTION3THESCOTTISHSTANDARDCLAUSES(EDITION2)

ThisistheSchedulespecifiedintheDeedofDeclarationbyRossAlexanderMacKaydated14andregisteredintheBooksofCouncilandSessionon15bothdaysofMarch2016.SCOTTISHSTANDARDCLAUSES(EDITION2)INTERPRETATIONIntheseClauses:-“Date of Settlement” or “settlement” means the date on which settlement is actuallyeffectedwhetherthatistheDateofEntryornot;“theMissives”meansthecontractofpurchaseandsaleconcludedbetweenthePurchaserandtheSellerofwhichtheOfferincorporatingreferencetotheseClausesformspart;The terms “the Purchaser”, “the Seller”, “the Property”, “the Price” and “the Date ofEntry”havethemeaningssetoutintheOfferorotherdocumentincorporatingreferencetotheseClauses;“the2012Act”meanstheLandRegistrationetc(Scotland)Act2012;“workingday”meansanydayonwhichclearingbanks inEdinburgh,GlasgowandLondonareopenfornormalbusiness;“the Building” means, where applicable, the larger building or tenement of which thePropertyformspart.Themasculine includes the feminineandwords in the singular include theplural andviceversa.Any intimation shall be in writing (which shall include, for avoidance of doubt, faxes oremails).Whereanyintimationmustbegivenwithinaspecifiedperiod,timewillbeoftheessence.1 FIXTURES,FITTINGS&CONTENTS1.1 ThePropertyissoldwith:

1.1.1 allheritablefittingsandfixtures;1.1.2 all itemsofwhatevernature fixedor fitted to theProperty the removalof

whichwouldmateriallydamagethefabricordecorationoftheProperty;1.1.3 all items stated to be included in the sales particulars or advertisements

madeavailabletothePurchaser;1.1.4 the following insofar as any were in the Property when viewed by the

Purchaser: garden shed or hut, greenhouse, summerhouse; all growing

plants,shrubs,trees(exceptthoseinplantpots);alltypesofblinds,pelmets,curtain rails and runners, curtain poles and rings thereon; all carpets andfloor coverings (but excluding loose rugs), stair carpet fixings; fittedbedroom furniture; all fixed bathroom and cloakroom mirrors, bathroomandtoiletfittings;kitchenunits;allcookers,hobs,ovens,washingmachines,dishwashers, fridgesand freezers if integral toorencasedwithinmatchingunits;extractorhoods,extractorfans,electricstorageheaters,electricfires,electriclightfittings(includingallfluorescentlighting,externallighting,walllights, dimmer switches and bulbs and bulb holders but not shades);television aerials and associated cables and sockets, satellite dishes;; loftladders; rotary clothes driers; burglar alarm, other security systems andassociatedequipment;secondaryglazing; fixedshelving, fireplacesurroundunits,firegrates,fendersandassociatedironmongery;and

1.1.5 oilinanystoragetankandgasinanygascylindersortankremainingatthe

DateofSettlement.

1.2 Whereawheeledbinorother receptacle for thecollectionof refuse isprovidedfreeofchargebytheLocalAuthorityorotherbodyresponsibleforthecollectionofrefuse,theSellershallensurethatthewheeledbinorotherreceptacleisleftatthe Property for the Purchaser failing which the Seller shall meet the cost ofreplacingsame.

1.3 TheSellerwarrants thatat theDateofSettlementall items included in thePrice

areownedbytheSeller,areorwillbefreeofalldebt,andarenotthesubjectofanylitigation.

1.4 TheSellerundertakes to removeallmoveables from thePropertynototherwise

includedinthePriceasattheDateofSettlement. 2 AWARENESSOFCIRCUMSTANCESAFFECTINGTHEPROPERTY2.1 So faras theSeller isaware (butdeclaring that theSellerhasmadenoenquiryor

investigation into suchmatters) theProperty (including in respectofClauses2.1.3and2.1.4theBuilding,ifappropriate)isnotaffectedby:

2.1.1 any Notice of Potential Liability for Costs registered in terms of the

Tenements(Scotland)Act2004ortheTitleConditions(Scotland)Act2003;2.1.2 anyNoticesofPaymentofImprovement/RepairsGrants;

2.1.3 floodingfromanyriverorwatercoursewhichhastakenplacewithinthelast

5years;

2.1.4 otherthanasdisclosed intheHomeReportforthePropertyanystructuraldefects;wetrot;dryrot;risingdamp;woodworm;orotherinfestation.

3 SPECIALISTREPORTS

3.1 AnyguaranteesinforceattheDateofEntryinrespectof(i)treatmentswhichhavebeen carried out to the Property (or to the Building, if appropriate) for theeradicationoftimberinfestation,dryrot,wetrot,risingdamporothersuchdefects,and/or (ii) insulation and double glazing, together with all supporting estimates,survey reports and other papers relating thereto (“the Guarantees”) will beexhibitedonconclusionoftheMissivesanddeliveredatsettlement.

3.2 TheSellerconfirmsthatheisnotawareofanythinghavingbeendoneoromittedto

bedonewhichmightinvalidatetheGuarantees. 3.3 If requested, and insofar as necessary and competent, the Guarantees will be

assignedtothePurchaseratthePurchaser’sexpense.4 CENTRALHEATING,SYSTEMSANDAPPLIANCES4.1 TheSellerundertakesthatanysystemsorappliancesofaworkingnature(including

central heating,water, drainage, electric and gas) forming part of the Property orincludedinthePricewillbeinworkingordercommensuratewithageasattheDateofSettlement.

4.2 TheSellerwillmakegoodanydefectwhichpreventsanysystemorappliancebeing

in suchorderprovidedsaiddefect is intimated inwritingwithin5workingdaysofsettlement.Failingsuchintimation,thePurchaserwillbedeemedtobesatisfiedastotheposition.

4.3 TheSellerwillonlyberesponsibleforcarryingoutanynecessaryrepairstoputany

systemor appliance into such order and shall have no liability for any element ofupgrading(excepttotheextentsuchupgrading isrequiredtoputanysuchsystemorapplianceintosuchorder).

4.4 Thelackofanyregularserviceormaintenanceofanysystemorapplianceorthefact

thatitmaynolongercomplywithcurrentinstallationregulationsshallnot,ofitself,bedeemedtobeadefect.

4.5 ThePurchasershallbeentitledtoexecuteanynecessaryrepairsat theexpenseof

theSellerwithoutreferencetotheSellerortheSeller’stradesmen(i)intheeventofanemergency;(ii)intheeventthattheSeller’stradesmendonotinspecttheallegeddefectswithin5workingdaysof intimation;or(iii) intheeventthatanynecessaryrepairsarenotcarriedoutwithin5workingdaysofinspection.

4.6 TheSellerconfirmsthathehasreceivednonoticeorintimationfromanythirdpartythatanysystem(oranypartthereof)isinanunsafeordangerouscondition.

5 DEVELOPMENT 5.1 The Sellerwarrants that he has not served or been servedwith nor received any

neighbournotificationnoticeissuedintermsofplanninglegislationinrespectofanydevelopment. Thiswarrantyshallnotapply (i) in respectofadevelopmentwhichhasbeencompleted,(ii)whereanyplanningpermissionhaslapsed,or(iii)whereanapplicationforplanningconsenthasbeenrefusedorwithdrawn.Intheeventofany

such notice being served on or received by the Seller prior to the Date ofSettlement, the Sellerwill forward such notice to the Purchaserwithin 5workingdaysofreceiptofsuchnotice.

5.2 Withoutprejudicetotheforegoing,theSellerwarrantsthathehasnoknowledgeofanydevelopmentproposalwhichcouldbe reasonablydeemedtomateriallyaffectthevalueoramenityoftheProperty.

6 STATUTORYNOTICES6.1 Any Local Authority (or other public body) notices or orders calling for repairs or

other works to the Property dated prior to or on the date of conclusion of theMissives (or anyotherworkaffecting thePropertyagreed toor authorisedby theSeller outstanding at the Date of Entry) will be the responsibility of the Seller.Liability under this conditionwill subsist untilmet andwill not be avoided by theissueofareplacementnoticeororder.

6.2 The Seller warrants that he has not received written notification of, approved,

enteredintoorauthorisedanyschemeofcommonrepairsorimprovementaffectingtheBuildinginstigatedoradministeredbyanyLocalAuthority(orotherpublicbody).WheretheSellerapproves,entersintoorauthorisesanysuchschemeorwhereanysuchschemeis instructed,theSellershall remain liableforhisshareofthecostofsuchworks. DetailsofanysuchschemewillbedisclosedtothePurchaserpriortosettlement.TheSellerundertakesnottoenterinto,approveorotherwiseauthoriseanysuchschemepriortosettlementwithouttheconsentofthePurchaser.

6.3 WhenanyworkintermsofClauses6.1or6.2aboveis incompleteorunpaidforat

theDateofSettlementthePurchaserwillbeentitledtoretainfromthePriceasumequivalenttotheestimatedcostoftheSeller’sshareofsuchworks(whichestimateshall be augmented by 25%). Such retention shall be held in an interest bearingaccountbythePurchaser’ssolicitorpendingsettlementoftheSeller’sliability.TheretentionshallnotbereleasedorintromittedwithwithoutthewrittenauthorityofthesolicitorsforthePurchaserandtheSeller.AnyshortfallwillremaintheliabilityoftheSeller.

6.4 OnissueofinvoicesforsuchworksintermsofClauses6.1and/or6.2abovebythe

Local Authority or other authorised party the retention shall be released tomakepaymentofsuchinvoicesassoonasreasonablypractical.

6.5 Notwithstanding any other term within the Missives, Clause 6 will remain in full

forceandeffectwithoutlimitoftimeandmaybefoundeduponuntilimplemented.6.6 Withoutprejudicetotheabove,thePurchasermayretainfromthePricesuchsum

asisreasonablyrequiredtomeetanycostsforwhichhemaybecontingentlyliableunderSection10(2)of theTitleConditions (Scotland)Act2003orSection12(2)oftheTenements(Scotland)Act2004asamended.Suchretentionshallbeheldinaninterest bearing account by the Purchaser’s solicitor pending settlement of thatliability.Theretentionshallnotbereleasedorintromittedwithwithoutthewrittenauthorityof the solicitors forboth theSellerand thePurchaser. Any shortfallwillremaintheliabilityoftheSeller.

6.7 PriortotheDateofEntrytheSellerwillprovidefulldetailsofanycommonrepairsinrespect of which a Notice of Potential Liability for costs has been or is to beregistered.

7 PROPERTYMANAGEMENTANDFACTORS7.1 Where the Property is part of any larger subjects (the Building or otherwise) or

development,itisaconditionthat: 7.1.1 commonchargeswillbeapportionedbetweentheSellerandthePurchaser

asattheDateofEntryonthebasisthattheSellerwillberesponsibleforallcommonrepairsandimprovementscarriedout,instructedorauthorisedonorpriortotheDateofEntry;

7.1.2 there are no major repairs or improvements currently proposed (by the

development factors, managing agents or a co-owner of the Building inwriting to theSeller), instructed,authorisedorcompletedbutnotyetpaidfor in respect of the Property or the larger subjects or the Building ordevelopmentofwhichitformspart;

7.1.3 theSeller shallprovide thePurchaserwith fulldetailsofany factoringand

blockinsurancearrangementsaffectingtheProperty;and 7.1.4 all other outgoings and charges payable in respect of the Propertywill be

apportionedasattheDateofEntry.8 ALTERATIONS8.1 Wheretherehavebeenadditionsoralterations(includingchangeofuse)completed

to the Propertywithin 20 years of the Date of Entry, or if the Property has beenerected within that period, then the Seller shall exhibit before and deliver at theDateofEntry:

8.1.1 allnecessaryListedBuildingConsentsandeither:

8.1.1.1 all necessary Building Warrants (including stamped warrantdrawings where available) and Certificates of Completion (or, ifapplicable,NoticesofAcceptanceofCompletionCertificate);or

8.1.1.2 an unqualified Property Inspection Report, Letter of Comfort, or

equivalent provided by the relevant Local Authority or othermutuallyagreedsupplier.

8.2 AllPlanningPermissionsorotherLocalAuthorityconsentsnecessaryforadditionsor

alterations (includingchangeofuse)completed to theProperty (or if thePropertyhasbeenerected)within10yearsoftheDateofEntryshallbeexhibitedbeforeanddeliveredattheDateofEntry.

8.3 TheSellerwarrants(i)thatanybuildingworkcarriedouttothePropertyhasbeenin

astateofsubstantialcompletionforaperiodofnotlessthan12weekspriortothe

dateofconclusionoftheMissives;and(ii) thatnovalidobjectiontotheworkwasmade at any time by a person with title and interest to do so under a valid realburden.

8.4 There are no planning conditions of a continuing naturewhich restrict or prohibit

thecurrentuseoftheProperty.9 DISPUTES/LITIGATION9.1 TheSellerwarrantsthatneitherthePropertynortheSeller’stitleareaffectedbyor

are under consideration in any court proceedings or other litigation or are thesubjectofanydispute.

9.2 There are no current disputes with neighbouring proprietors or occupiers or any

otherpartiesrelatingtoaccess,titleorcommonproperty.10 ACCESS10.1 TheSellerwillafterconclusionoftheMissivesanduponreceiptofreasonablenotice

by the Purchaser give access to the Purchaser or his agents to the Property atreasonable times for thepurposesof inspection,measurementor theprovisionofquotations. This right of access however shall not be exercised on more than 2occasionswithouttheconsentoftheSeller.

11 UTILITIESANDSERVICES11.1 Unlesstheserviceshavebeenterminated(whichterminationshallbe intimatedto

thePurchaser)prior toconclusionoftheMissives, theSellerwillco-operate in thetransferofgas,electricity,telephoneandotherservicesuppliestothePurchaserbuttheSellerwillnotberesponsibleforanyre-connectionchargesincurred.TheSellermayretaintheexistingtelephonenumber.

11.2 Roads 11.2.1 TheSellerwarrantsthat:- EITHER Allroadways,footpathsandkerbsexadversothePropertyhavebeenmadeupand

paidforandaremaintainedbytheLocalAuthority OR ThereisaprivateaccessroadtoandfromthePropertyfromaroadwaymaintained

bytheLocalAuthority.11.3 Water 11.3.1 TheSellerwarrantsthat:-

EITHER

ThePropertyisconnectedtothemainswatersupply OR ThePropertyisconnectedtoaprivatewatersupplysystemandthewatersupplyis

ofsufficientqualitytocomplywiththebacteriologicalandchemicalparameterslaiddowninthePrivateWaterSupply(Scotland)Regulations2006asamended. Sofaras theSeller isaware thesupply isadequate inquantityatall times forallnormaldomesticpurposesand for thepresentuseof theProperty. TheSellerwilldeliverpriortotheDateofEntryareportdatednotearlierthan6monthspriortotheDateofEntryfromtheLocalAuthorityorwhereapplicable,thePublicAnalystevidencingthatthesaidsupplymeetsthesaidRegulations.

11.4 Drainage 11.4.1 TheSellerwarrantsthat:- EITHER ThePropertyisconnectedtothepublicseweranddrainagesystem OR The Property is connected to a private drainage system comprising a septic tank,

treatment plant, or reed bed with relative outfall pipe and/or soakaway and allrelative pipes, drains and connections ("the Drainage System"). There will beexhibited prior to and delivered at the Date of Entry evidence that the DrainageSystem relating to the Property is either registered or licensed with the ScottishEnvironmentProtectionAgencyoranyotherappropriateauthorityundertheWaterEnvironment(ControlledActivities)(Scotland)Regulations2005.TheSellerwarrantsthathehasdonenothingnorhasanyeventoccurredtocontraveneorprejudicethetermsoftheregistrationorlicence.

12 BREACHOFCONTRACTBYSELLER12.1 IfattheDateofEntrytheSellerdoesnotgivevacantpossessionorotherwisefailsto

implementanymaterialobligationsduebytheSellerintermsoftheMissives,thenthePurchaserwillbeentitled (providedthePurchaser is inapositiontosettle thetransactionontheDateofEntry)toclaimdamagesforanyreasonablelossincurredbythePurchaserarisingfromsuchfailure.

12.2 IntheeventthattheSeller’sbreachofcontractcontinuesfor14daysaftertheDate

of Entry the Purchaserwill be entitled to treat that breach as repudiation and torescindtheMissivesongivingtheSellernoticetothateffect.

12.3 This condition (i) shall apply without prejudice to any other rights or remedies

availabletothePurchaser,and(ii)shallnotapplyintheeventoftheSeller’sfailuretosettlebeingattributabletothefaultofthePurchaser.

13 BREACHOFCONTRACTBYPURCHASER13.1 ThePricewillbepaidinfullontheduedate.

13.2 The Sellerwill not be obliged to give vacant possession of the Property except as

againstpaymentofthePriceandanyinterestorlossesdueasaftermentioned.

13.3 IfthePriceispaidaftertheduedate,whetherinwholeorinpart,theSellerwillbeentitledtopaymentfromthePurchaser,attheSeller’soption,ofone(butnotboth)of:13.3.1 ordinarydamagesinrespectofallproperandreasonablelossesarisingout

ofthelatepaymentofthePrice(whichincludesbutisnotlimitedtoWastedExpenditure);or

13.3.2 interestontheamountofthePriceoutstandingatthePrescribedRatefrom

theduedateuntilthedatewhenpaymentismade.

13.4 IfthePriceremainsunpaidinwholeorinpartatanytimemorethan14daysaftertheduedate,theSellerwillbeentitledtorescindtheMissives,andtopaymentfromthePurchaser,attheSeller’soption,ofone(butnotboth)of:13.4.1 ordinarydamagesinrespectofallproperandreasonablelossesarisingout

ofthenonpaymentofthePriceandfailureoftheMissives(whichincludesbutisnotlimitedtoWastedExpenditure);or

13.4.2 liquidateddamages,payableon theenddate, calculatedas theamountof

interestwhichwould have run on the amount of the Price outstanding atthePrescribedRatefromtheduedateuntiltheenddate(underdeductionofanyamountbywhichthePriceobtainedbytheSelleronare-saleofthePropertyexceedsthePrice).

13.5 InthisClause:

13.5.1 The“duedate”meanswhicheveristhelaterof:

(i) theDateofEntry;or(ii) thedateonwhichpaymentofthePricewasduehavingregardtothe

circumstances of the case including any entitlement to withholdpaymentowingtonon-performancebytheSeller.

13.5.2The“enddate”meanswhicheveristheearlierof:

(i) thedatefalling12monthsaftertheduedate;or(ii) where the Property is re-sold following rescission, the date of entry

underthecontractofre-sale.

13.5.3 “WastedExpenditure”meanstheaggregateof:

(i) anycapital loss sustainedby theSelleron the resaleof thePropertybeing the difference between the Price under theMissives and theresalepriceunderanysuchresale;

(ii) anyestateagency,marketingandotheradvertisingexpensesproperly

incurredinconnectionwiththeresale;(iii) anylegalexpensesproperlyincurredinconnectionwiththeresale;(iv) any expenses in connection with the cancellation of removal of

furniture, storage of furniture and transfer or retransfer of furnitureproperlyincurredasaresultofthePurchaser’sbreachofcontract;and

(v) any bridging loan costs (including arrangement charge and interest)

incurred by the Seller in respect of any purchase transaction whichtheyrequiretocompleteunderconcludedMissives.

13.5.4 “PrescribedRate”meanstherateof4%aboveTheRoyalBankofScotland

plcbaseratefromtimetotimeinforce.

14 NEWHOMEWARRANTYSCHEMES14.1 If the Propertywas constructed or convertedwithin 10 years prior to theDate of

Entry,thereshallbedeliveredatsettlementeither:-

14.1.1 appropriate NHBC documentation or such equivalent new homewarrantydocumentation as provided by any alternative warranty provider asapprovedbyandacceptabletothePurchaser'sLenders,inwhichevent,theSellerwarrantsthatnoclaimshavebeenmadeorreportedorarependingundertherelevantwarrantyscheme;or

14.1.2 aProfessionalConsultant’sCertificatewithothernecessary informationall

in compliancewith the current edition of the CML Lenders’ Handbook forSolicitors(Scotland).

15 TITLECONDITIONS15.1 Any part of the Propertywhich is commonormutualwith any adjoining property

(including the roofand roof systems; rhonesanddownpipes;drainsandboundarywalls;fencesordivisions)fallstobemaintained,renewedandupheldbyrespectiveproprietorsonanequitablebasis.

15.2 Any reservation of minerals will be subject to conditions as to adequate

compensation and will not include any right to enter the Property or lower itssurface. Themineralsare included in thePropertyso faras theSellerhasright tosame.

15.3 TheexistinguseofthePropertyisinconformitywiththetitletosame.Therearenounusual, unduly onerous or restrictive burdens, conditions or servitudes affectingtheProperty.

15.4 Thereisnooutstandingliabilityforanypartofthecostofconstructingwalls,fences,

roadways,footpathsorsewersadjoiningorservingtheProperty.15.5 ThePropertyhasthebenefitofallsuchservitudesandwayleavesasarerequiredfor

itsproperandexistinguse(includingbutnotlimitedtovehicularaccess,anyprivatewatersupplyortheDrainageSystem).

15.6 IfthetitletothePropertydisclosesapositionotherthanasstatedinthisClause15,

the Purchaser (regardless of his previous state of knowledge) will be entitled toresile from theMissives without penalty to either party but only provided (i) thePurchaser intimates his intention to exercise this right within 10 working days ofreceipt of the Seller’s title; and (ii) such matters intimated as prejudicial are notrectifiedorclarifiedtothePurchaser’ssatisfaction(actingreasonably)bytheDateofEntryorwithin6weeksfromthedateofsuchintimationwhichever isearlier. ThePurchaser’srighttoresileshallbehissoleoptionintermsoftheMissives. Failingtheexerciseofsuchrighttoresile,(i)thePurchasershallbedeemedsatisfiedastotheposition,and(ii)theSellershallbedeemednottobeinbreach.

16 AWARENESSOFENCUMBRANCES16.1 TheSellerisnotawareofanyencumbrancesasdefinedinSection9ofthe2012Act

affectingthePropertywhicharenotdisclosedinthetitletotheProperty.17 ADVANCENOTICES17.1 An“AdvanceNotice”forthepurposesoftheMissivesmeansanadvancenoticeas

definedinSection56ofthe2012Act.17.2 TheSellerwillapplytotheKeeperforanAdvanceNoticefortheDisposition,inthe

formadjustedwith thePurchaser, tobeenteredon theapplication record for thePropertynoearlierthan10workingdayspriortotheDateofEntry.ThecostoftheAdvanceNoticefortheDispositionwillbemetbytheSeller.

17.3 TheSellerconsentstothePurchaserapplyingtotheKeeperforAdvanceNoticesfor

anydeedswhichthePurchaserintendstograntinrelationtotheProperty.Thecostof any Advance Notices which the Purchaser applies for will be met by thePurchaser.

17.4 IftheSellerrescindstheMissivesinthecircumstancessetoutinClause13abovethe

Purchaserconsentstothedischargeof theAdvanceNotice for theDispositionandthe Purchaser confirms that it will immediately discharge at his own cost anyAdvanceNoticesubmittedbyhimifrequestedtodosobytheSeller.

17.5 IfsettlementislikelytooccuraftertheDateofEntry,theSeller, ifrequestedtodo

soby thePurchaser,willapply fora furtherAdvanceNotice for theDisposition, in

the form adjusted with the Purchaser, and the cost of any additional AdvanceNoticeswillbemet:

17.5.1 bytheSeller,ifthedelayinsettlementisduetoanyfailureorbreachbyor

onbehalf of the Seller to implement its obligations under theMissives ontime;or

17.5.2 bythePurchaser,ifthedelayinsettlementisduetoanyfailureorbreachby

oronbehalfofthePurchasertoimplementitsobligationundertheMissivesontime.

17.6 The Seller's Solicitorswill not provide any letter of obligationundertaking to clear

therecordsofanydeed,decreeordiligence.However,theSellershallprocurethathis Solicitorswill grant a LetterofUndertakingobliging them toeither (a) deliverwithin28daysoftheDateofSettlementtothePurchaser’sSolicitorsaDischargeofanyoutstandingStandardSecuritygrantedbytheSelleroverthePropertytogetherwithrelativeLandRegistrationApplicationFormor(b)exhibitwithin35daysoftheDate of Settlement a copy of the Title Sheet of the Property showing that anysecurity disclosed in the Legal Report exhibited prior to settlement has beendischarged

18 SETTLEMENT/REGISTRATIONOFTITLE18.1 The Price will be payable on the Date of Entry in exchange for (i) a good and

marketabletitle;(ii)avalidlyexecutedDispositioninfavourofthePurchaserorhisnominee(s); (iii) vacant possession of the Property; (iv) if applicable, the Letter ofUndertakingand(v)allkeysheldbytheSellerforthePropertyasalsoanycodeforanyoperationalalarmsystem;togetherwith:

18.1.1 Iftheprovisionsofthe2012Actrelatingtoafirstregistrationapply:-

18.1.1.1 aLegalReport(obtainedatthecostoftheSeller) broughtdowntoadatenotmorethan3workingdayspriortotheDateofEntrybut subsequent to the commencement of the protected periodprovided by the Advance Notice aftermentioned (which Reportwill show (a) no entries adverse to the Seller's interest in theProperty; (b) any AdvanceNotice for the Disposition; and (c) noother Advance Notices other than those submitted by thePurchaser);and

18.1.1.2 suchdocumentsandevidence,includingaplan,astheKeepermay

require to enable the Keeper to create the Title Sheet of thePropertytodisclosethePurchaserastheregisteredownerofthePropertywithout exclusion or limitation of warranty in terms ofSection75ofthe2012Act.

Suchdocumentswill include (unless theProperty comprisesonlypartof atenement or flatted building and does not include an area of groundspecificallyincludedinthetitletothatpart)aplanorboundingdescriptionsufficienttoenablethewholePropertytobeidentifiedonthecadastralmap

and evidence (such as a Plans Report Level 3 or equivalent) that (i) thedescriptionofthewholePropertyascontainedinthetitledeedsishabiletoinclude the whole of the occupied extent and (ii) there is no conflictbetweentheextentofthePropertyandregisteredcadastralunits.

18.1.2 IfthetitletothePropertyisalreadyregisteredintermsofthe2012Actorintermsof theLandRegistration (Scotland)Act1979 (“the1979Act”), therewillbeexhibited inexchange for thePricea copyof theTitleSheetof theProperty containing no exclusion or limitation of warranty in terms ofSection 75 of the 2012 Act or exclusion of indemnity in terms of Section12(2)ofthe1979Actwithallnecessary links intitleevidencingtheSeller’sexclusiveownershipofthePropertytogetherwith:

18.1.2.1aLegalReportobtainedatthecostoftheSellerbroughtdowntoadatenotmorethan3workingdayspriortotheDateofEntrybutsubsequenttothecommencementoftheprotectedperiodprovidedbytheAdvanceNoticeaftermentioned(whichReportswillshow(a)noentriesadversetotheSeller'sinterestintheProperty;(b)anyAdvanceNoticefortheDisposition;and(c)nootherAdvanceNoticesotherthanthosesubmittedbythePurchaser);and18.1.2.2suchdocumentsandevidenceastheKeepermayrequiretoenabletheKeepertoupdatetheTitleSheetofthePropertytodisclosethePurchaserastheregisteredownerofthePropertywithoutexclusionorlimitationofwarrantyunderSection75ofthe2012Act.

18.1.3 Where Clauses 18.1.1 or 18.1.2 apply the updated or newly created Title

Sheetof thePropertywillcontainnoexclusionor limitationofwarranty interms of Section 75 of the 2012 Act and will disclose no entry, deed ordiligence (including any Notice of Potential Liability for costs under theTenements(Scotland)Act2004ortheTitleConditions(Scotland)Act2003))prejudicialtothePurchaser’sinterestotherthansuchashavebeencreatedby or against the Purchaser or have been disclosed to and accepted inwritingbythePurchaserpriortotheDateofSettlement.

18.1.4 IfanApplicationforFirstRegistrationofthetitletothePropertyisstillbeing

processedbytheKeeper,theSellerwarrants(i)thatnorequisitionshavebeenmade by the Keeper but not implemented, and (ii) the Keeper has notindicated any concern with the Application such as might result in anyexclusion or limitation of warranty under the 2012 Act or exclusion ofindemnityintermsofthe1979Act,refusaltoregister,orrejectionofthesaidapplication.

18.1.5 Withoutprejudicetotheabove,theSellerwarrantsthatthePropertyisnot

affectedbyanyentryintheRegisterofCommunityInterestsinLand.18.1.6 ThePurchasershall,onrequest,providetotheSellertheApplication

NumberandTitleNumberallocatedbytheRegistersofScotlandtoanApplicationforFirstRegistrationofthetitletotheProperty.18.1.7 NotwithstandinganyothertermwithintheMissives,thisClauseshallremain

infullforceandeffectwithoutlimitoftimeandmaybefoundeduponuntilimplemented.

19 INCORPORATEDBODIES19.1 If theSeller isa limitedcompany,orLimitedLiabilityPartnership,thenpriortothe

DateofEntrytheSellerwillexhibitsearchesintheRegisterofChargesandcompanyfileoftheSellerbroughtdowntoadatenotmorethan3workingdayspriortotheDateofEntrywhich searcheswill confirm (a) that there isnonotice regarding theappointment of a receiver, administrator or liquidator, winding up, striking off orchangeofnameaffectingtheSellerand(b)thefullnamesofthepresentdirectorsandsecretaryoftheSeller.

19.2 IntheeventofsuchsearchesdisclosinganyfloatingchargeaffectingthePropertyat

theDateofEntry,therewillbedeliveredacertificateofnon-crystallisationofsuchfloating charge grantedby the chargeholder, datednotmore than3workingdaysprior to theDateof Entry, confirming thatno stepshavebeen taken to crystallisesuchfloatingchargeandreleasingthePropertyfromthefloatingcharge.

19.3 Within3monthsafterthedateofsettlementsuchsearchesagainsttheSellerwillbe

deliveredorexhibitedbroughtdowntoadate22daysafterthedateofregistrationof theDisposition in favourof thePurchaserorhisnomineesor36days after theDate of Entry whichever is the earlier disclosing no entries prejudicial to theregistrationofthesaidDisposition.

19.4 The Seller will exhibit or deliver clear searches in the Register of Charges and

companyfilesofallcompaniesdisclosedasownerorformerowneroftheProperty,inanyLandCertificate,copyTitleSheetorLegalReports,broughtdownineachcaseto adate22days after registration in the LandRegisterof thedeeddivesting therelevantcompanyofitsinterest,disclosingnoentriesprejudicialtotheregistrationof the said deed. The Seller's solicitors will not provide a letter of obligation inrespectofsuchsearches.

20 RISK20.1 The Seller will maintain the Property in its present condition, fair wear and tear

excepted,untilthetimeatwhichsettlementtakesplace.20.2 TheriskofdamagetoordestructionofthePropertyhowsoevercausedwillremain

withtheSelleruntilthetimeatwhichsettlementtakesplace.20.3 IntheeventofthePropertybeingdestroyedormateriallydamagedpriortothetime

atwhich settlement takes place, either the Purchaser or the Seller shall have therighttorescindtheMissiveswithoutpenaltytotheother.

21 PROPERTYENQUIRYCERTIFICATE

21.1 A Property Enquiry Certificate (“PEC”) dated after the date of conclusion of the

Missivesbutnotearlierthan3monthspriortotheDateofEntrywillbeexhibitedatleast5workingdayspriortotheDateofEntry.ThePECshallrequiretoreportonallmattersrequiredforthePurchaser’ssolicitorstocomplywiththecurrenteditionoftheCMLLenders’HandbookforSolicitors(Scotland).

21.2 IfthePECdisclosesanymatterwhichismateriallyprejudicialtothePurchaserorthe

Property,thePurchasershallbeentitledtoresilefromtheMissivesandthatwithoutpenalty to either party but only provided that (i) the Purchaser intimates hisintentiontoexercisethisrightwithin10workingdaysofreceiptofthePEC;and(ii)such matters intimated as being prejudicial are not rectified or clarified to thePurchaser’s satisfaction (acting reasonably)by theDateofEntryorwithin6weeksfromthedateofsuchintimationwhicheverisearlier.ThePurchaser’srighttoresileshallbehissoleoptionintermsoftheMissives.Failingtheexerciseofsuchrighttoresile, (i) the Purchaser shall be deemed satisfied as to the position, and (ii) theSellershallbedeemednottobeinbreach.

21.3 Fortheavoidanceofdoubt,shouldthePropertybesitedwithinaConservationArea;

form part of or be a Listed Building; be subject to the Local Authority WindowsPolicyoranArticle4Direction;orbeaffectedbyaTreePreservationOrder,thisshallnotbedeemedtobeaprejudicialgroundentitlingthePurchasertosoresile.

22 COALAUTHORITYREPORT22.1 If the Coal Authority or similar statutory body recommends that a Coal Mining

Report is obtained for the Property, then such report shall be exhibited prior tosettlement. In the event that such report discloses a positionwhich ismateriallyprejudicial to the Property or the Purchaser’s proposed use of same, then thePurchaser shallbeentitled to resile fromtheMissivesand thatwithoutpenalty toeitherpartyonlyprovided (i) thePurchaser intimateshis intention toexercise thisright inwritingwithin 10working days of receipt of the said report; and (ii) suchmattersintimatedasbeingprejudicialarenotrectifiedorclarifiedtothePurchaser’ssatisfaction(actingreasonably)bytheDateofEntryorwithin6weeksfromthedateof such intimationwhichever is earlier. ThePurchaser’s right to resile shall behissoleoptionintermsoftheMissives. Failingtheexerciseofsuchrighttoresile,(i)thePurchasershallbedeemedsatisfiedastotheposition,and(ii)theSellershallbedeemednottobeinbreach.

23 OCCUPANCYRIGHTS23.1 At theDate of Entry the Propertywill not be affected by any occupancy rights as

defined in the Matrimonial Homes (Family Protection) (Scotland) Act 1981 asamendedortheCivilPartnershipAct2004.

24 SUPERSESSIONOFMISSIVES24.1 TheMissivesshallceasetobeenforceableafteraperiodof2yearsfromtheDateof

Settlement except insofar as (i) they are founded upon in any court proceedings

which have commencedwithin the said period or (ii) this provision is excluded intermsofanyotherconditionoftheMissives.

25 ADDRESSDETAILS 25.1 The Seller and the Purchaser irrevocably authorise their respective solicitors to

releasetheircurrentaddressondemand.26 LIMITATIONOFCLAIMS26.1 No claimwill be available or competent to the Purchaser in respect of (i)matters

disclosed to and accepted by the Purchaser prior to the Date of Entry or (ii) anyitemsorclaimsamountinginaggregatevaluetolessthan£300.

27 ENTIREAGREEMENT27.1 TheMissiveswill constitute theentire agreement andunderstandingbetween the

Purchaser and the Seller with respect to all matters to which they refer andsupersede and invalidate all other undertakings, representations, and warrantiesrelating to thesubjectmatter thereofwhichmayhavebeenmadeby theSellerorthe Purchaser either orally or in writing prior to the date of conclusion of theMissives.

28 MINIMUMPERIODOFOWNERSHIP/POSSESSION28.1 TheSellerwarrantsthathehasownedthePropertyforatleast6monthspriortothe

dateoftheOfferorotherdocumentincorporatingreferencetotheseClauses.ThisprovisionshallnotapplywheretheSellerisapersonalrepresentativeorexecutoroftheproprietor;orisaninstitutionalheritablecreditorexercisingitspowerofsale;orisareceiver,trusteeinsequestration,administratororliquidator.

28.2 The Seller warrants that the Property has been possessed openly, peaceably and

withoutjudicialinterruptionbytheSellersincetheSeller’sacquisitionofsame.29 GREENDEALETC29.1 ThePropertyisnotsubjecttoagreendealplanasdefinedinSection1oftheEnergy

Act2011.

29.2 TheSellershalldeliveratorpriortosettlementanEnergyPerformanceCertificateincompliancewithTheEnergyPerformanceofBuildings(Scotland)Regulations2008,asamended.

29.3 ThePropertydoesnotbenefitfrom,contain,orhaveattachedtoitanysolarpanels

orotherelectricitymicro-generationinstallation.30 CROFTING30.1 The provisions of the Crofters (Scotland) Act 1993, as amended, or the Crofting

Reform(Scotland)Act2010donotapplytotheProperty.

30.2 AnyDecroftingDirectionorResumptionOrderunder thesaidCroftingActs relatingtothePropertyshallbeexhibitedpriortoanddeliveredatSettlement.

SECTION4EXPLANATIONSOFTHESCOTTISHSTANDARDCLAUSES(EDITION2)1. FIXTURES,FITTINGS&CONTENTS

TheOffershouldspecifyanymoveableitemsincludedinthesale.Heritablefixturesandfixturesareitemsofamoveablecharacterthathavebecome“heritable”byattachmenttothePropertyandhavethereforebecomepartofit.Oil inastoragetankandgasremaininginacylinderareincluded.Somemoveablesareincludedbyreferencetosalesparticularsoradverts.Others(notablycarpetsandfloorcoverings,blinds,curtainrailsandrunnersbutnotcurtains)areincludedunderitem(d).1.2providesfordeliveryofawheeledbinorreceptacle.1.3Thesellerwarrantshisownershipofmoveablesandthattheyarefreeofdebtorcourtaction.1.4obligestheSellertoremovemoveableitemsnotincludedintheprice.

2. AWARENESSOFCIRCUMSTANCESTheSellerstateshisawarenessofNoticesormattersthatdonotaffecttheProperty.Ofcourse,iftheSellerknowsofanysuchNotice,etcthenheshouldtellhissolicitorsothatthemattercanbeproperlyaddressed.

3. SPECIALISTREPORTS

3.1 ThisobligestheSellertodeliveratsettlementanyGuaranteesforrot

orrisingdamptreatmentsaswellasthoseforinsulationanddoubleglazing.

3.2&3.3 Self-explanatory4. CENTRALHEATINGETC.

Thetestis“workingorder”i.e.ifthesystemorapplianceworksontheDateofEntry(when the keys areobtained), that is sufficient. If, for example, thepurchaserhasanyconcernsabout theworkingorderor safetyof thecentralheating system it isrecommended that he arranges for a separate inspection of it as it will not becoveredbythesurveyor’sreport.AnydefectsexistingattheDateofEntryrequiretobeintimatedwithinfiveworkingdaysofsettlementotherwisetheclaimislost.

5. DEVELOPMENT

5.1 Under planning legislation, neighbour notification requires to be given by anownerofadjoiningpropertyforcertainkindsofdevelopment.Thisclause,however,doesnotapplytonoticeswherethedevelopmenthasbeencompletedpriortotheconclusion ofMissives, or where the notice in question has lapsed, or where theapplicationforconsenthasbeenrefusedorwithdrawn. IfaSellerhasbeenservedwith a neighbour notification notice (other than in the excluded circumstances),thenaqualificationwillberequiredinthequalifiedacceptancetoexplainthatthere

isanexception fromthewarranty.ThePurchaser is tobenotifiedby theSellerofanyfreshnoticesservedpriortotheDateofSettlement i.e.whentheprice ispaidandwillrequiretodecidewhetherornottoobject.5.2AwarrantybytheSellerthathehasnoknowledgeofanydevelopmentproposalofaneighbourwhichmightmateriallyaffectthevalueoramenityoftheProperty.

6. STATUTORYNOTICESETC.

6.1TheSellerisliableforanylocalauthoritynoticesorordersrequiringrepairstobecarriedouttothePropertyissuedpriortoandonthedateofconclusionofMissives.The Purchaser is liable for such notices and orders issued after the date ofconclusionofMissives.6.2 If the Seller has received written notification etc of any scheme of commonrepairsorimprovementsinstigatedoradministeredbyanyLocalAuthorityorotherpublicbody thenhe requires to tellhis solicitor so that this canbedisclosed inaqualifiedacceptanceoftheoffer.6.3 - 6.6 provides an agreedmechanism for retention of a sum to dealwith suchnotices.6.7SelfexplanatoryexceptthataNoticeofPotentialLiabilityforCostsisaDeedthatcanberegisteredagainsttheTitleofthePropertybyaneighbourortheFactorwhohasbeenunabletorecovercostsofcommonrepairs.

7. PROPERTYMANAGEMENTANDFACTORSIf the Property is part of a larger building or tenement (e.g. a flat) or is a houseformingpartofadevelopmentwithcommonamenityareasthenthisclauseapplies.Anycharges formaintenanceofcommon itemswillbeapportionedat theDateofEntryonthebasisstated.IfthereisaFactor,hewillcarryouttheapportionment.The Seller’s solicitor shall supply to the purchaser full details of the factoring andblockinsurancearrangementsandwillnotifythefactorofthechangeofownership.Please note that the Seller will remain liable for major repairs or improvementscurrentlyproposed(bythedevelopmentfactors,managingagentsoraco-owneroftheBuildinginwritingtotheSeller),instructed,authorisedorcompletedbutnotyetpaidfor.ThisshouldbereadalongwithSub-Clause6.2.

8. ALTERATIONS

8.1Most erections and alterations require planning permission from the planningdepartmentandbuildingwarrantconsent fromthebuildingcontroldepartmentofthelocalauthority.ListedBuildingConsentisalsorequiredforalistedbuilding.A Completion Certificate (or Notice of Acceptance of a Completion Certificate) isrequiredfromthelocalauthorityoncompletionofthework.Theselleristoproducetherelevantdocumentsforsuchwork(butinthecaseofalterationsandextensionsonly ifmaterial or significant) carried outwithin a period of 20 years prior to theDateofEntry.

8.2The seller shouldalsoproducePlanningPermission for any suchworks carriedoutwithinaperiodof10yearspriortotheDateofEntry.IftheSellerhascarriedoutalterationsbuthasnotobtainedsuchconsentstheSellershould contact his solicitor at anearly stage andadvisehimof these and takehisadviceabouthowtoremedythesituation.8.3 If the title provides that consent from neighbouring owners was required foralterationsbutthealterationhasbeencompleteforaperiodof12weeksormorewithnoobjectionhavingbeenmade,thenneighbouringproprietorsloseanyrighttocomplain about the particular alteration. However if such an objection has beenmadeyoushouldinformyoursolicitorwhowilldiscusshowtodealwiththematter.8.4ThiswarrantstherearenoplanningconditionsofacontinuingnaturerestrictingcurrentuseofthePropertyoradverselyaffectingit.

9. DISPUTES/LITIGATIONSelf-explanatory.10. ACCESSSelf-explanatory.11. UTILITIESANDSERVICES

11.1Self-explanatory11.2 Roads are not always taken over for maintenance by a local authority. Thisallowsforthatbeingthecase.11.3Waterand11.4Drainagearenotalwaystakenoverformaintenancebyalocalauthorityandthiscoversthatsituationandwhatisrequired.

12. BREACHOFCONTRACTBYSELLER

If theSellerdoesnot implementhispartof theMissives, thisconditionprovidesarighttothePurchasertoclaimdamagesforreasonablelosses.

13. BREACHOFCONTRACTBYPURCHASER

IfthePurchaserfailstoimplementhispartofthecontractbypayingthepriceontheDateofEntry,thisspecifiestheremediesopentotheSellerforinterestordamagesandtheSeller’srighttorescindorterminatetheMissivesandresell.

14. NEWHOMEWARRANTYSCHEME

Mostnewhomesandsomeconversionsofolderonesprotectownersofhouses ifserious structural defects appear in the first 10 years. A number of schemesoperated by NHBC and others are acceptable to lenders. An alternative (where aproperty does not benefit from such a scheme) is a professional consultant’scertificate(“PCC”)complyingwiththeCMLLender’sHandbookforScotland.

15 TITLECONDITIONS

TherearevarioustitlemattersthatneedtobelookedatbyaPurchaser’ssolicitortocheckthatthetitleisgoodandmarketable(readilysaleable).ThetitlesareexhibitedtothePurchaser’ssolicitorandthePurchaserwillhavearighttoresile(i.e.getoutof the contract) with no penalty to either Seller or Purchaser provided (1) thepurchaser gives intimation of something prejudicial within 10 working days ofobtainingtheTitlesand(2)ifsuchmattersintimatedasprejudicialarenotrectifiedorclarifiedtothePurchaser’ssatisfaction(actingreasonably)bytheDateofEntryorwithin 6 weeks of such intimation whichever is earlier. If a purchaser does notexercisearighttoresilewithinthatperiodthepurchaser isdeemedsatisfiedastothe position. A seller should advise his solicitor if he is aware of or believes thattheremaybeservitudesaffectingthepropertythatarenotcontainedintheTitle.

16. AWARENESSOFENCUMBRANCESMost Burdens and Servitudes, Leases and the like are mentioned in the Title butsomecanexistwithoutbeingstatedintheTitle.Sellersshoulddisclosethese.

17. ADVANCENOTICES

TheseprovideapriorityperiodtopurchaserstoregistertheirTitlefreeofchallengebycreditorsorinsolvency,ordisposal,orgrantofasecuritytoanotherparty.

18. SETTLEMENT/REGISTRATIONOFTITLE

ThisconditionrequirestheSellertosignanddelivertheDispositiontransferringthetitletothePurchaserandmakesprovisionsfornormalLandRegistrysearchestobeprovided by the Seller showing that the Seller still has a good title and there isnothingwhichwouldpreventthesalesuchastheSellerhavingbeenmadebankruptorhavinganInhibition(acourtorderpreventingasale).Ifthepropertyhasnotbeenpreviouslyregisteredthen18.1.1appliesandifalreadyregistered18.1.2applies.

19. INCORPORATEDBODIESSelf-explanatory.20. RISK

WithoutthisconditiontheriskofdestructionordamagewouldpasstoaPurchaserwhenMissivesareconcludeddespite the fact that thePurchaserwouldnotyetbelivinginthehouse.ItisthoughttobefairerthattheSellershouldbeartheriskuntilthetimeofSettlementwhenthekeysarehandedover.

21. PROPERTYENQUIRYCERTIFICATE(“PEC”)

ItisusualfortheSellertopayforandproduceacertificatefromthelocalauthorityor a private search company confirming that there is nothing adverse from aplanningpointofview.IfthePECdisclosesanymatterwhichismateriallyprejudicialto the Purchaser or to the Property, the Purchaser can get out of the contractwithoutpenaltyprovided (1) thePurchaser intimateshis intent to resilewithin10workingdaysofreceiptbyhissolicitorofthePECand(2)ifsuchmattersintimatedas prejudicial are not rectified by the Date of Entry or within 6 weeks of such

intimation whichever is earlier. If a Purchaser does not exercise a right to resilewithinthatperiodthePurchaserisdeemedsatisfiedastotheposition.21.3Providesclarificationastowhatismaterialornot.

22. COALMININGREPORT

ItisusualforaSellertoobtainathisexpenseaCoalMiningReportifthePropertyiswithinacoalminingarea.ThePurchasercanresilefromtheMissives(i.e.getoutofthecontract)withoutpenalty ifsomethingmateriallyprejudicialtothePropertyorthePurchaser’sproposeduseofthePropertyisdisclosedprovided(1)thePurchaserintimateshisintenttoresilewithin10workingdaysofreceiptbyhissolicitoroftheReportand(2)ifsuchmattersintimatedasprejudicialarenotrectifiedbytheDateof Entry or within 6 weeks of such intimation whichever is earlier. If a Purchaserdoes not exercise a right to resile within that period the Purchaser is deemedsatisfiedastotheposition.

23. OCCUPANCYRIGHTS

IfthePropertyisaMatrimonialHomeandisinthesolenameofeitherthehusbandorwifethenthehusbandorwifenotnamedonthetitlehasanoccupancyright. IftheSellerisinacivilpartnershipthenthecivilpartnerhasasimilarright.

24. SUPERSESSIONOFMISSIVES

ThisdoesnotmeanthattheSellerisresponsibleforthePropertyfor2years.Itdoesmean that any part of the Missives or contract ceases to be enforceable after aperiodof2yearsfromthedefinedDateofSettlement(DOS)exceptregardingClause6and18whichremaininfullforceuntilimplemented.IfaPurchaserdoesnotsettletherewillbenoDOSandsonotimelimitof2yearssothattheMissivesremaininforceunderthegenerallawandthisclausewillnotapply.

25. SELLER’SADDRESSSelf-explanatory.26. LIMITATIONOFCLAIMS

This clause is designed to give protection to a Purchaser against a breach of thecontractbytheSellerwhichbecomesapparentafterthePurchaserhaspaidthepriceandreceivedthetitledeedsandkeys.ItallowsthePurchasertoseekdamagesfromthe Seller except in relation to themattersmentioned. It is felt that claims under£300 are minor in nature (compared to the value of the Property) and thatPurchasersshouldbeexcludedfrommakingsuchminorclaims.

27. ENTIREAGREEMENT

CommentsmadebytheSelleraboutthePropertyortheconditionofthePropertyaswellasPropertySchedulesshallbedeemedsupersededbytheMissives.

28. MINIMUMPERIODOFOWNERSHIP

This clause isdesigned to complywith lenders’ requirements. It is awarranty thatthe Seller has owned the property for at least 6months prior to the date of theoffer.Ifthisisnotthecase,theSellershouldalerthissolicitor.

29. GREENDEALETC

29.1 This clause is designed to ascertain if the Property is subject to a green dealplan.Itprovidesthatitisnotsubjecttooneasthedefaultpositionasmostsaleswillnot involve aGreenDeal.Other provisionwill need to bemade if aGreenDeal isinvolved.29.2AnEnergyPerformanceCertificate(EPC)formspartoftheHomeReportbutsomesalesare“offmarket”sothissubclauseremindssellersoftheirobligationtoprovideanEPCifthereisnoHomeReport.29.3TheSellerconfirmsthatthePropertydoesnotbenefitfrom,containorhaveattachedtoitanysolarpanelsetc.Ifitdoesthenextraprovisionmayberequiredtocoverthissituation.

30. CROFTING

ThisclauseisdesignedtoascertainifthePropertyisaCroft.Itprovidesthatitisnotas the default position asmost sales will not involve a Croft. Other provision willneedtobemadeifaCroftisinvolved.

THESCOTTISHSTANDARDCLAUSESWORKINGPARTY

are

1) RossMacKayofHBJGateley,Edinburgh2) DuncanCollinsonofAllingham&Co.,Edinburgh3) PaulCarnanofBlaneyCarnan,Glasgow4) AnneBoydofRaeburnChristieClarkWallace,Aberdeen5) RichardStreetofAberdeinConsidine&Co.,Aberdeen6) DerekDuncanofRSBMacdonald,Dundee7) RobertMacduffofElliot&Co.,Perth8) PeterMason,Macleod&MacCallum,Inverness9) DavidKilshawofCullenKilshaw,GalashielsandPeebles10) SallySwinneyofBlackwood&Smith,Peebles11) RhonaSimpsonofSouthForrest,Inverness12) NeilWebsterofWalkerSharpe,Dumfries13) StevenJohnWhitelawofBellParkKerridge(Scotland)Ltd,Dumfries

WrittenbyIanC.FergusonofMitchellsRobertononbehalfoftheEdinburghConveyancersForumandGlasgowConveyancersForumandScottishStandardClausesWorkingParty