How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask JGM Your Own Question

JGM, Solicitor
Category: Scots Law
Satisfied Customers: 9973
Experience:  30 years as a practising solicitor.
Type Your Scots Law Question Here...
JGM is online now

Hello, I am based in Scotland and am looking to purchase

Customer Question


I am based in Scotland and am looking to purchase a home from plan.

The builder originally wanted to treat this home purchase as a "self build" project and for us to finance the build - However we struggled to access a "self build" mortgage and we are now reverting back to purchasing through a conventional mortgage (which we will apply for when building completed at end) but with a deposit to be paid now before building commences.

The builder is now looking for a £20,000 deposit from me and I would like to draft a simple contract to protect myself and therefore need your advice and assistance.

I would obviously like to protect my deposit in the unlikely event that the builder goes bankrupt and/or fails to deliver on the remainder of the build.

The name of the company is Lomond Group - they will do the build.
The owner of the plot is the Directors sister - Corrina ??? (in personal name)

The protection we are looking for is that in the unlikely event that the builder fails to live-up to his promise to complete the build within a set-term duration then they will either:-

a). Return the deposit to us in full without hindrance or debate or
b). Give us first right of refusal to purchase the plot at a rate of £100,000 less the deposit of £20,000
c). All ownership of copyright, designs, certificates, drawings and permissions will be transferred to me at such a time.

Can you kindly assist with some advice and wording on this matter?

***** *****on
Submitted: 2 years ago.
Category: Scots Law
Expert:  JGM replied 2 years ago.
Thank you for your question.

Drafting a contract for the purchase and sale of land and a building contract are outwith the scope of this site. These should be done by a solicitor acting specifically for you. However I will give you some general words of advice.

Firstly make sure that you know you are dealing with. Lomond Group Limited is a dissolved company which was based in London. There is a company based in Glenrothes called Lomond Group Scotland Ltd. If this is the company that you are dealing with, make sure that they are designed properly in all correspondence and contract documentation.

Dealing firstly with the eventuality that you raise that the builder goes "bankrupt". The company will not go bankrupt. It could, however, go into liquidation, receivership or Administration. In any of those insolvency events, as they are known, it is highly unlikely that you would see your deposit again nor would you be in a position to insist that you can purchase the plot and obtain the intellectual property rights in the plans etc. A liquidator, receiver or administrator will be looking after the interests of the bank and the creditors as a whole, not just your interests.

Where you are not purchasing the plot until the property is completed you have no rights to the plot or the building on it whatsoever, apart from the contract you have with the builder. An insolvency practitioner may or may not decide to continue with that contract and you cannot take that risk.

For that reason I suggest that you do the following:

1. Enter into the usual type of missive whereby you will buy the plot from the builder, pay the deposit and pay the balance upon completion.

2. Investigate the possibility of the builder obtaining a performance bond so that if he does suffer insolvency, the completion of the property will be covered by insurance.

3. If a performance bond is not possible, take a standard security over the property. That means that if the builder goes out of business you can call up the security and enjoy status as a secured creditor. Essentially you can enter into possession of the ground and whatever has been built on it at that stage.

4. Make sure you are given a copy of all the plans etc along with the planning permission and building warrants etc. make sure that it is part of your contract with the builder that if the building is not completed within a particular period of time or if the builder goes into insolvency, the contract automatically assigns the intellectual property rights to you.

These are my general thoughts but you must take specific advice from your own advisers before paying any money to this project. I do hope that everything runs smoothly for you and that you end up with a beautiful new house.

I hope this helps. Please leave a positive response so that I am credited for my time.

What Customers are Saying:

  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther

Meet The Experts:

  • Ben Jones

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    Qualified Solicitor - Please start your question with 'For Ben Jones'
< Last | Next >
  • Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • Anna's Avatar


    Teacher, writer, biologist

    Satisfied Customers:

    Great research skills, variety of work experiences, teaching experience.
  • pdheslin's Avatar



    Satisfied Customers:

    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
  • Kim D.'s Avatar

    Kim D.


    Satisfied Customers:

    Researcher 20+yrs in small and large institutions
  • findinganswers's Avatar


    Internet Researcher

    Satisfied Customers:

    Internet Researcher, Nurse for over 17 years, and can find answers for you!
  • ProMBA's Avatar


    Internet Researcher

    Satisfied Customers:

    I'm an owner of three businesses, with both undergraduate and graduate business degrees from top tier universities.