Enforcing standard security Scotland—voluntary surrender, court proceedings and insolvency processes
Produced in partnership with Alistair Drummond and Joanna Clark of DLA Piper Scotland LLP
Enforcing standard security Scotland—voluntary surrender, court proceedings and insolvency processes

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:

  • Enforcing standard security Scotland—voluntary surrender, court proceedings and insolvency processes
  • Enforcement procedures—steps following expiry of notices
  • Entering into possession
  • Voluntary surrender of property by owner to secured creditor
  • Court proceedings
  • Sale by secured creditor
  • Distribution of sale proceeds
  • Enforcement of securities using insolvency Procedures

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:

  1. voluntary surrender procedures and use of court proceedings

  2. the sale process and distribution of the proceeds of sale

  3. alternative enforcement using insolvency procedures (in brief)

Enforcement procedures—steps following expiry of notices

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