The following Property guidance note Produced in partnership with Alistair Drummond and Joanna Clark of DLA Piper Scotland LLP provides comprehensive and up to date legal information covering:
This Practice Note considers the second stage of enforcement of standard security over heritable property in Scotland. It deals with the steps creditors may take following expiry of notices, namely:
voluntary surrender procedures and use of court proceedings
the sale process and distribution of the proceeds of sale
alternative enforcement using insolvency procedures (in brief)
The rights available to a secured creditor differ depending on what type of notice has been served, see Practice Note: Enforcing standard security Scotland—default events, creditor’s rights and service of notices.
Following the expiry of calling-up notices under section 19 of the Conveyancing and Feudal Reform (Scotland) Act 1970 (CFR(S)A 1970), any of the rights listed in CFR(S)A 1970, Sch 3 Standard Condition 10 may be exercised by the secured creditor, including the right to enter into possession and sell the property. However, only certain of these rights are available to a secured creditor following the expiry of a notice of default under CFR(S)A 1970, s 21. In particular, while the right to sell the property is available, the right to enter into possession is not, and thus, from a practical perspective, the calling-up process will often require to be gone through to enable marketing and sale to be completed and the buyer's solicitors satisfied that the secured creditor is
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