What is a Note of Interest?

08 May 2023

If you are thinking about buying a property in Scotland, you might be wondering what a Note of Interest is, why you would want to note interest and who can submit a Note of Interest for you. 

We spoke to Ken Thomson, Residential Property Partner at Thorntons, to find out more.

What is a Note of Interest? 

If you have found a property that you really like and are thinking of placing an offer, a Note of Interest is a way of telling the selling agent that you would like the opportunity to make an offer on the house before they sell it to someone else.  

A note of interest does not mean you must make an offer, so you are not committing yourself in any way. It simply indicates that you are interested in the property and would like to be told if a Closing Date for offers is set. 

A Closing Date is a time and date by which all offers on a property should be submitted, in writing, by any interested party’s solicitor. Sellers are not under an obligation to accept the highest, nor indeed any, offer at the closing date.

What are the guidelines around a Note of Interest? 

If the selling agent decides to set a Closing Date, they must contact everyone who has noted interest to let them know and give them an opportunity to submit an offer.  

The potential buyers submit their offers by the allocated time and without knowing what the other parties are offering. The more Notes of Interest there are on a property, the more perceived competition there is between the potential buyers, and this can lead to buyers paying a premium over the valuation of a property, at the closing date with a view to bettering the other offers, and securing the property.

Do I need a solicitor to make a Note of Interest? 

It is best to submit a Note of Interest through your solicitor, particularly if the property for sale is being marketed by a solicitor estate agent. A note of interest lodged through you solicitor is more likely to be taken seriously by the selling agents. It means that, if a Closing Date is set, you have your solicitor in place to give you advice about the purchase process, what price you might have to pay to secure a property, and to submit an offer for you. 

Does a Note of Interest guarantee me the chance to make an offer? 

No, a Note of Interest does not guarantee that the seller will not sell to someone else in the meantime. If the seller wants to sell the property to someone else, they are within their rights to do so even if there are other parties who have noted interest.