PART 2

Key concepts
CHAPTER 1

Land transactions and chargeable interests

Land transaction

Land transaction
3
A land transaction is the acquisition of a chargeable interest.

Chargeable interest

Chargeable interest
4
1
A chargeable interest is an interest of a kind mentioned in subsection (2) which is not an exempt interest.
2
The interests are—
a
a real right or other interest in or over land in Scotland, or
b
the benefit of an obligation, restriction or condition affecting the value of any such right or interest.
3
In subsection (2), “land in Scotland” does not include land below mean low water mark.

Exempt interest
5
1
An interest is exempt if it is a security interest.
2
In subsection (1) a “security interest” means a real right or other interest in or over land held for the purpose of securing the payment of money or the performance of any other obligation.
3
See also paragraphs 21 to 24 of schedule 7 (which make additional provision about exempt interests in relation to alternative property finance arrangements).
4
The Scottish Ministers may, by regulations, modify this section so as to—
a
provide that a description of a real right or other interest in or over land is an exempt interest,
b
provide that a description of a real right or other interest in or over land is no longer to be an exempt interest,
c
vary a description of an exempt interest.

Acquisition and disposal of chargeable interest

Acquisition and disposal of chargeable interest
6
1
Each of the following is an acquisition and a disposal of a chargeable interest—
a
the creation of the interest,
b
the renunciation or release of the interest,
c
the variation of the interest (but not the variation of a lease).
2
The variation of a lease is treated as an acquisition and a disposal of a chargeable interest only where paragraph 29 of schedule 19 (reduction of rent or term or other variation of lease) applies.
3
A person acquires a chargeable interest where—
a
the person becomes entitled to the interest on its creation,
b
the person's interest or right is benefitted or enlarged by the renunciation or release of the interest, or
c
the person benefits from the variation of the interest.
4
A person disposes of a chargeable interest where—
a
the person's interest or right becomes subject to the interest on its creation,
b
the person ceases to be entitled to the interest on its being renounced or released, or
c
the person's interest or right is subject to or limited by the variation of the interest.
5
Except as otherwise provided, this Act applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any enactment or by operation of law.

Buyer and seller
7
1
The buyer, in relation to a land transaction, is the person who acquires the subject-matter of the transaction.
2
But a person is treated as the buyer only where that person has given consideration for, or is a party to, the transaction.
3
The seller, in relation to a land transaction, is the person who disposes of the subject-matter of the transaction.
S. 3 in force at 1.4.2015 by S.S.I. 2015/108, art. 2
S. 4 in force at 1.4.2015 by S.S.I. 2015/108, art. 2
S. 5 in force at 1.4.2015 by S.S.I. 2015/108, art. 2
S. 6 in force at 1.4.2015 by S.S.I. 2015/108, art. 2
S. 7 in force at 1.4.2015 by S.S.I. 2015/108, art. 2