The Changing Pace of Scottish Missives
A common question from buyers and sellers is: “Why does it take so long to conclude missives these days?” It’s a fair question, especially for those who’ve bought or sold property in the past and remember deals being wrapped up in just a few days.
The missives process has changed dramatically over the past 20 years, but what are the reasons behind the longer timelines and what are the benefits and drawbacks of concluding missives quickly?
What Are Missives?
In Scottish property law, missives are the formal letters exchanged between solicitors that form the contract for the sale and purchase of a property. Once the final missive is accepted, both buyer and seller are legally committed to the transaction. Backing out without good (contractually backed) reason means breaching the contract — and that can have serious consequences.
What’s Changed in 20 Years?
Twenty years ago, it wasn’t unusual for missives to be concluded within a few days of an offer being accepted. Quick conclusions were often seen as a sign of commitment and efficiency.
Today, however, it’s more typical for missives to take two to four weeks, sometimes longer. This shift reflects changes in lending practices, legal regulation, buyer behaviour, and expectations of due diligence.
It’s tempting to feel nostalgic for a time when things moved faster, but it’s equally as important to recognise that missives certainly were more likely to fall apart back then. Deals were often concluded prematurely, before all funding, checks or legal issues had been resolved which inevitably led to a higher incidence of breach of contract.
Why Do Missives Take Longer Today?
Several key factors contribute to the slower pace:
- Mortgage Requirements: Today’s mortgage lenders are more cautious and risk-averse than in the early 2000s. Since the financial crisis of 2008, there has been a significant tightening of lending criteria. As well as a more cautious appetite to lending, lenders now have to consider more property specific matters such as non-traditional construction, ownership of solar panels and cladding.
- Regulatory Compliance: Solicitors must carry out detailed anti-money laundering checks, verify identities, and examine the source of wealth and funds. These checks are essential but time-consuming and far more detailed and complex than twenty years ago.
- More Complex Transactions: With more people buying and selling as part of a chain, delays in one transaction can hold up others.
- Home Reports and Title Due Diligence: Introduced in 2008, Home Reports have shifted the dynamic of the early stages of a transaction. While they offer greater transparency to buyers, they have also increased the volume of paperwork and issues that may need to be addressed before missives are concluded. Historically, missives contained clauses to provide for delivery of any documents required by a purchaser’s survey which left both buyer and seller open to many unknowns.
- Client Expectations and Caution: Buyers and sellers alike are more aware of the risks. Sellers want to ensure that buyers have funding firmly in place, while buyers want full diligence completed before making a legally binding commitment. The pressure to “conclude quickly” has been replaced by a culture of “better safe than sorry.”
- Lack of Bridging Loans & Additional Dwelling Tax: Bridging Loans used to be the safety net for buyers if their sale fell through. However, Bridging Loans are now a thing of the past which, when coupled with eye-watering Additional Dwelling Tax rates, means that it is generally impossible for a buyer to complete their purchase if their sale falls through.”
The Case For Quick Missives
Despite the trend towards longer timelines, there are still circumstances where quick missives make good sense.
- Certainty and Security: Once missives are concluded, the contract is binding. This gives both parties peace of mind and reduces the likelihood of last-minute changes.
- Momentum: Keeping up momentum can help avoid deals falling through due to delay, cold feet or unexpected issues.
- Market Positioning: In competitive markets, the ability to conclude quickly can give buyers an edge and appeal to sellers looking for a fast, clean deal.
The Risks of Rushing
At the same time, a fast conclusion is not always in a client’s best interests.
- Incomplete Funding or Legal Checks: Concluding missives before a mortgage offer is issued or before title and legal issues are resolved can leave parties exposed to financial or legal risk.
- Stress Under Pressure: Trying to move too fast can leave clients feeling overwhelmed or poorly advised.
- Higher Chance of Breach: In the past, quick conclusions often led to more frequent breaches of contract when something didn’t line up after the fact.
Case Examples from Matheson Lawson
Case 1: The Risk of Acting Too Fast
A buyer keen to secure a highly sought after flat in Edinburgh insisted on concluding missives before her mortgage offer was in place (despite our strong advice to the contrary). Unfortunately, after issuing a Decision in principle, her lender later declined the loan due to issues with the extent of the title. With no way to fund the purchase, she was in breach of contract facing serious financial consequences.
Case 2: The Benefits of a Quick Deal
By contrast, a cash buyer purchasing a rural property through Matheson Lawson was able to conclude missives within five days. No mortgage was involved, the title was clean, and the Home Report was satisfactory. With everything aligned, the early conclusion gave both parties confidence and the deal settled smoothly with the much desired certainty.
So, Are Quick Missives Better?
It depends. There is no one-size-fits-all answer. Quick missives can offer real advantages when the circumstances are right, especially where funding is secure and legal checks raise no red flags. However, in many cases, a cautious, well-paced process protects both parties from risk.
At Matheson Lawson, we believe in adapting to each client’s needs. Some transactions benefit from speed whereas others require patience. Either way, our goal is to make sure you enter into your property contract with confidence and clarity, not pressure or panic.
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