The closed bids process, also known as the “sealed bids” or “offers over” system, is a common method for buying property in Scotland. This system is designed to encourage competitive bidding and can often result in a higher sale price for the seller. Here’s an explanation of how the process works:

1. Property Valuation and Marketing:
   • A property is valued by a surveyor, and the seller sets an asking price, which is usually labeled as “offers over” a certain amount.
   • The property is then marketed through estate agents, property websites, and other channels to attract potential buyers.
2. Viewing and Interest:
   • Prospective buyers arrange viewings to inspect the property. If they are interested, they register their interest with the selling agent.
   • Registering interest doesn’t commit a buyer to make an offer, but it ensures they will be informed of any closing date for bids.
3. Setting a Closing Date:
   • If there is significant interest in the property, the seller’s agent will set a closing date for bids. This is a deadline by which all offers must be submitted.
   • The closing date is usually announced to all parties who have registered interest.
4. Submitting Offers:
   • Interested buyers submit their offers in writing, typically through their solicitors, by the specified closing date. These offers are kept confidential and are not disclosed to other buyers.
   • Offers usually include the price, proposed date of entry (when the buyer intends to take possession), and any other conditions or contingencies.
5. Reviewing Offers:
   • Once the closing date has passed, the seller and their agent review all the submitted bids.
   • The seller is not obligated to accept the highest offer and can consider other factors such as the buyer’s financial position, conditions attached to the offer, and proposed date of entry.
6. Accepting an Offer:
   • The seller accepts the most favorable offer, and a formal acceptance is communicated through the solicitors. This is known as the “acceptance of offer.”
   • Once an offer is accepted, it becomes legally binding. The buyer’s solicitor will conduct final checks, and both parties will work towards completing the sale, including signing the formal purchase contract (missives) and transferring the title deed.
7. Completion:
   • The completion process involves the buyer transferring the funds to the seller, and the property ownership is transferred to the buyer.
   • On the agreed date of entry, the buyer takes possession of the property.

This closed bids process creates a competitive environment and can lead to a higher sale price for the seller. However, it requires buyers to carefully consider their offers and often involves a degree of risk, as they may not know how much others are willing to bid.