It is the first time the guidance has been updated since relevant sections of the Land Registration etc (Scotland) Act 2012 came into force in December 2014.

The update has been developed by the society’s Property Law Committee and approved by its Rules, Waivers and Guidance Sub-Committee. Lockton, the master policy broker, has also had sight of the updated guidance.

Advance notices are commonly used in property transactions to protect the buyer’s disposition (or grantee’s deed) during the gap between the transaction settling and the date of registration of the buyer’s (or grantee’s) title.

The updated guidance states that it may, however, still be appropriate for solicitors to issue letters of obligation where granting an advance notice:

• is incompetent, for example where the transaction is granting a long lease or a deed of servitude over land recorded in the General Register of Sasines; or
• is impracticable, such as where there is not sufficient time to register an advance notice prior to settlement.

The guidance now also includes links to Property Standardisation Group (PSG) template letters of obligation, using the PSG term “letters of undertaking”.

In relation to insolvency practitioners, the updated guidance explains that solicitors acting for them are unlikely to be prepared to grant a letter of obligation. Reliance on advance notice in such cases is therefore important.