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Section six: Owners wishing to sell their property
Joint open market sales - where there is no golden share
6.1 If an owner wishes to move from their property and the Scottish Ministers do not have a golden share, the owner can sell the property. The property must be sold with vacant possession on the open market by private bargain for the best price that can be reasonably obtained all as more specifically set out in the Shared Equity Agreement. When the property is sold, the registered social landlord must submit full details to the grant provider within one week of the date of settlement using the form at Annexe I. This allows the grant provider to raise a request for the receipt of sums obtained by the registered social landlord, as this receipt must be repaid to the Scottish Ministers in terms of the grant offer.
6.2 An owner will be responsible for meeting all costs (including those incurred by the Scottish Government and the registered social landlord) when selling the property on the open market.
Buy back and re-sales - where there is a golden share
6.3 If an owner wishes to move from their property and the Scottish Ministers retain a golden share, the Minute of Agreement between the owner and the Scottish Ministers ( Annexe A) makes provision for the Scottish Ministers or their nominees to purchase the property (if they so wish). The registered social landlord must promptly advise the Scottish Government of the position and recommend whether or not they believe the property should be purchased. If it is determined that the property should be purchased for re-sale on a shared equity basis, the registered social landlord should (subject to the timely receipt of documentation from the owner's solicitor) conclude missives no later than three months from the date the owner formally informed the registered social landlord that they wished to sell their property. During this time, the registered social landlord and the Scottish Government will enter into discussion on how the purchase - and the registered social landlord's reasonable legal costs - should be funded.
6.4 An alternative method to buy back and re-sale - and one which would substantially reduce costs - is to effect a direct sale from one owner to another, with the consent of the registered social landlord on behalf of the Scottish Ministers. When pursuing this option, registered social landlords must be satisfied that the new owner meets the eligibility criteria set out in these procedures, and that the required legal documentation is entered into ( Annexe A). In addition, the registered social landlord should only use this option if it is not likely to lead to unreasonable delays in the sale process for the owner. As above, the registered social landlord should ensure that (subject to the timely receipt of legal documentation from the owner's solicitor) missives are concluded between the seller and the buyer no later than three months from the date the owner formally informed the registered social landlord that they wished to sell their property.
6.5 In either case, the registered social landlord should instruct the valuer to determine the open market value of the property. Generally, the valuer should be asked to value the property in its existing state. This means, for example, that any improvements carried out by the owner or any breach of their obligations will be reflected in the valuation as well as any security or other encumbrance on the title. There are accordingly differences between these factors and that used for a sale of the Scottish Ministers' share although any reduction in value caused by adaptations carried out to meet the needs of a disabled person will continue to be disregarded.
6.6 Where the decision is made that the Scottish Ministers or their nominees will buy back a property and re-sell it to a new owner, the registered social landlord must keep the grant provider fully advised in order to enable the Scottish Ministers to execute all documentation in a timely manner.
6.7 Where the re-sale is to an owner who has taken a higher equity stake in the property than the previous owner, the registered social landlord must submit full details to the grant provider within one week of the date of settlement by completing the form at Annexe J. This allows the grant provider to raise a request for the receipt of sums obtained by the registered social landlord, as this receipt must be repaid to the Scottish Ministers in terms of the grant offer.
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