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Property Factors (Scotland) Act 2011

Property Factors (Scotland) Act 2011

The Property Factors (Scotland) Act 2011 was passed as law by the Scottish Parliament in March 2011 and it came into force on 1 October 2012. The law was developed to regulate property factors and provide a more transparent relationship between them and the homeowners. It aims to protect homeowners by providing minimum standards for property factors. It applies to all residential property and land managers whether they are private sector businesses, local authorities or housing associations.

The Act has three main elements:

• A compulsory register of all property factors operating in Scotland
• A code of conduct that sets out minimum standards of practice with which all registered property factors must comply
• A Housing and Property Chamber which homeowners will be able to apply to if they believe their factor has failed to comply with the code of conduct or otherwise failed to carry out their duties.

If you live in housing which includes commonly owned areas such as roofs, staircases, entrances and gardens you may use a Property Factor.

Frequently asked questions

What is a Property Factor?

A factor is an organisation which maintains or manages common property for residential use. This might be the general fabric of a building such as the roof, exterior walls or guttering.

What are property factoring services?

Services received by homeowners, which can include the management and maintenance of common parts of properties used for residential purposes. This includes regular planned maintenance of the common parts of the property and organising and carrying out repairs to major components such as the roof, chimney, exterior walls and foundations.

Who will be affected by the Act?

• Homeowners who are required to have a property factor if it is stated in their title deed. This generally applies to newer housing estates within this Council area. The Council does not have any responsibility or control over private property factors.
• Homeowners who have entered into a voluntary agreement with a private factor to factor their land or property. The Council has no responsibility over these relationships.
• Homeowners who have purchased their property under the Right to Buy system, or who have subsequently acquired a former Council or Housing Association property. Through the title conditions the Council or Housing Association may have identified themselves as factors and reserved the right to carry out works whilst there are still tenants in the block of flats.

What is the Written Statement of Services?

Under the code of conduct for factors they are required to provide a statement of services to each homeowner being factored. The statement of services sets out the terms and service standards of the factoring arrangement.

How many homeowners may be affected by this Act?

Approximately 1,000 properties previously owned by the Council will be affected by the new legislation. At this moment, we do not have the figure for the number of owners who will receive factoring services from a housing association or a private company.

Will there be a financial impact for those being factored?

Homeowners who are receiving factoring services from a Housing Association or private company should contact them to find out if there will be a cost involved.