Scottish system gives 'fair crack of the whip'
Scottish system gives 'fair crack of the whip'The Scottish house buying system is beneficial to property investors, it has been claimed.
The system helps to prevent gazumping and gazundering as the process becomes legally binding at an earlier stage than in England
, estate agents and solicitors Russel & Aitken said yesterday.
The Scottish house buying system helps to prevent gazumping and gazundering as the process becomes legally binding at an earlier stage than in England, estate agents and solicitors Russel & Aitken said today.
Property partner Dianne Paterson said that the "blind bidding" process in Scotland, where all prospective buyers place one, 'final' bid and the highest wins, is advantageous as it gives "everyone a fair crack at the whip".
Provided they simply bid what they can afford and want to pay, they cannot lose, she argued.
Ms Paterson added: "Although the processes involved in buying a house in Scotland
are not dissimilar to those in England, the main advantages are undoubtedly in the timing of when the contract becomes legally binding.
"In Scotland, the contract can become legally binding at a relatively early stage in the process, unlike in England where contracts are often exchanged towards the end.
"Where there is more than one party interested in a property then it does become necessary to have some system in place to give everyone a fair crack at the whip. The blind auction usually achieves this."
Dianne Paterson is a property partner with Russel & Aitken and board member of the Edinburgh Solicitors Property Centre.
Earlier this month MSP Dr Bill Wilson criticised the blind bidding process, claiming it disadvantages first time buyers, and called on the Scottish Executive to reform the system.
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21 September 2007 Print this article