What you need to keep in mind when selling land for development 

Selling land in Scotland, whether for development, diversification or estate restructuring, can seem straightforward.

However, beneath the surface lie challenges that can catch even experienced landowners off guard. Based on my experience, here are four points every Scottish landowner should be aware of to help avoid costly mistakes and barriers to business ambitions.

1 

Is your land B-A-D?

Build – Can your land be built on?

Titles to land can contain burdens which restrict the land’s use, in particular restrictions on being able to develop a property. Before expense is incurred in marketing a property for sale, reviewing the title deeds to ensure no such restrictions exist is vital.

If such rights do exist, it is not necessarily a deal breaker; however being aware of the issues and assessing the availability (and cost) of removing the risk at an early stage is key because it is a cost that the landowner will likely be asked to incur.

Access – Do appropriate rights of access exist?

One of the most common pitfalls is insufficient or unclear access rights. A plot may appear accessible, but unless legal servitudes are properly constituted in the title deeds, future use or resale could be compromised.

Residential developments for more than a certain number of units (usually five) will require access roads built to an adoptable standard, so ensuring your title includes sufficient rights to upgrade, widen and install services within any such roads is key to any such development.

Drainage – Can your site be drained?

Plots without secure rights to water supply, drainage or electricity may be unsellable or significantly devalued. For residential sites, access to adopted mains infrastructure for foul sewerage, and a watercourse or adopted sewer for surface water, is essential.

As with access, establishing the availability of sufficient rights to install and thereafter use such infrastructure is key at an early stage, while bearing in mind the topography of sites can have a big influence on what infrastructure may be required to drain a site (and therefore have a big effect on cost). Establishing the availability of rights and location of adopted infrastructure at an early stage is key.

2 

Title conditions

Unforeseen or overlooked title conditions commonly can delay or derail deals to sell development plots.

Reviewing the title to a plot so as to be aware of any potential barriers to development or pre-emptions and considering voluntary first registration in the Land Register of Scotland if title to the property remains in the General Register of Sasines, can be a useful step prior to agreeing any deal to sell a plot. 

3 

Employment and tenancy complications

Agricultural tenancies and employment-linked housing can create legal entitlements that delay or block sales.

The Employment Rights Bill 2025 looks to strengthen protections for workers, including those in rural housing. Understanding existing tenancies and planning sales accordingly can smooth transactions and avoid delays.

Titles to land can contain burdens which restrict the land’s use, in particular restrictions on being able to develop a property

– Andrew Leslie

4 

Planning assumptions versus reality

Buyers often assume planning permission is a formality, but local development plans, environmental designations or community objections can derail projects.

Engagement with planning consultants at an early stage, or considering option agreements with developers who can manage the planning process may assist. However planning can be a drawn-out process in Scotland and sellers will have to exercise patience.

Unlocking value through plot sales requires foresight and legal expertise. Collaborating with solicitors, surveyors and planning consultants is essential for a successful land sale supporting rural diversification. By proactively addressing legal nuances, landowners can maximise the potential of their land assets in Scotland’s evolving real estate landscape.