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system will produce a fairly fast transfer of theproperty.There have been recent changes in the systemof contract in Scotland whereby the previousformality rules which were required to enterinto binding contracts have been relaxed. It istherefore now possible for parties to becomecontractually bound on the basis ofcorrespondence between two parties. In somecircumstances, contracts do not even requireto be in writing. The basic principle of theagreement and intention of the parties(consensus in idem) is still required, butadditional care is required throughout thenegotiation process.For these reasons it is more important thatlawyers are consulted at the outset of anytransaction and that advice is taken as to theconduct of negotiations to ensure that nocontractual obligation is undertaken before theparties so intend.2. Leasing business/commercialpremisesThe style of lease commonly used forcommercial properties is broadly similar to thatused in England and Wales although theapplication of Scots law to the terms producesmaterially different results in certain respects.It follows that the rights and responsibilities ofthe parties will be different from elsewhere inthe UK. Scotland has virtually no legislationregarding leasehold interest for commercialproperties.for a year in the case of shop facilities uponapplication to the sheriff. A tenant musttherefore seek advice well in advance of theexpiry date of the lease to ensure that theirnegotiating power is not compromised in anyway.3. AdviceLand Law in Scotland recently underwentmajor reform. The Title Conditions (Scotland)Act 2003, the Tenement (Scotland) Act 2004(which applies to commercial premises as wellas to residential premises) and the Abolition ofFeudal Tenure (Scotland) Act 2000 werephased in from 1 November 2003, abolishingmany differing conditions that existed overproperties in Scotland.The new legislation was designed to simplifyand codify Land Law in Scotland although ithas introduced a replacement system ofinterpretation and registration of title conditionswhich requires careful consideration andspecialist advice. A knowledge of both the newand previous law is essential to fully advise ontitles to properties.The Anti-Social Behaviour (Scotland) Act 2004has introduced a system of compulsorylandlord registration in Scotland which is amust for any client buying residentialinvestment property. Where corporate andbusiness transactions involve a "Scottishdimension", Charles Russell can arrangeScottish legal advice or recommend to youlawyers in Scotland.The courts tend to apply the terms of leasesvery strictly. This is illustrated by some recentcases where disputes in both Scotland andEngland have arisen over similarly wordedclauses and the courts in the respectivecountries have adopted a different approachwhich in turn produces different results.In Scotland a tenant’s right to assign itsinterest in the lease is regulated by the termsof the lease. Most commercial leases willpermit a tenant to assign its interest subject tolandlord’s consent which cannot beunreasonably withheld or delayed. In thatevent, on completion of the assignment, theoutgoing tenant is unconditionally releasedfrom all obligations to the landlord since thereis no privity of contract.A tenant of commercial property in Scotlandhas no right to require a renewal or extensionat the end of the contractual period of thelease other than a very limited right to extendPAGE 31