By We look at what buyers need to know about executory sales and confirmation.
Picture this: After a long and exhausting property search, you finally find the home that's just right for you. But then the estate agent mentions that it's an Executory sale and they are waiting on confirmation. You're left scratching your head.
While it's a term that you've heard before, you're not entirely sure what it means and if it could affect your homebuying plans.
Well, let us explain.
What is Confirmation?
When a person passes away, the assets they owned in their sole name can't be immediately sold or distributed. It's a matter of waiting until the court has granted 'confirmation.'
In Scotland, it's typically the executor(s) of the deceased's will who apply for confirmation. If there's no will, a slightly different procedure is followed.
Once confirmation has been granted (and any inheritance tax and debts have been settled), the executor(s) can distribute the assets according to the deceased's wishes.
What does it mean for a buyer?
It's common for executors to market a property before confirmation is granted. So if you find yourself viewing a property where confirmation is pending, it's all above board.
The executors are acting with the expectation that by the time both parties are ready to conclude the transaction, confirmation will have been obtained.
You can't finalize a property transaction until confirmation has been granted, but you can get much of the paperwork sorted out in the meantime.
You might have to be patient
There's quite a lot of paperwork to be completed, and documentation to be gathered, before the executor(s) can apply for confirmation. Once the application has been submitted, it can take between six to 12 weeks to be granted (although it's challenging to provide an exact timeframe due to potential processing delays).
Ask the right questions
To get a realistic idea of the timescale, it's useful to find out how far along the executors are in the process (discuss this with the estate agent). If the application has been submitted, then there's a good chance things are progressing well. If the application hasn't been lodged yet, you may face a longer wait.
Be sensitive
If, by some chance, a relative of the deceased is present when you view the property, be sensitive. It may be that you're viewing their childhood home or a property that holds significant emotional value to them. If you have any questions, direct them to the estate agent.
Benefits of confirmed properties
Renovation opportunity
If you're looking for a property that requires renovations, a confirmed property might suit your needs. It may have been some time since any renovation work was carried out, allowing you to put your own stamp on the home.
No onward chain
You've probably heard about people getting caught up in complicated chains because they're buying from someone who is buying from someone else, and so on. With a confirmed property, there is no onward chain, which means you might have more flexibility regarding matters like completion dates.
If you're looking to buy a new home, feel free to contact us at Scottish Property Centre today.
Looking to sell an inherited property? Download our free guide – A Guide to Help Selling an Inherited Property
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