Property factors and land-owning maintenance companies under Justice Committee microscope

31.01.2013

The ability of homeowners to appoint and dismiss property factors and land-owning maintenance companies is to be investigated by the Scottish Parliament’s Justice Committee.

The short inquiry will focus on the practical operation of the Title Conditions (Scotland) Act 2003. The Committee has asked interested individuals and organisations to contact them with their views in relation to the ability and flexibility of homeowners to switch property factors and to dismiss land-owning maintenance companies.

Justice Committee Convener Christine Grahame MSP said:

“We are undertaking this short inquiry as existing legislation in the 2003 Act appears inflexible, complicated and impractical for homeowners who want to exercise their right to switch property factors. For example, people who bought their homes under ‘right to buy’ legislation may only be able to challenge the factoring/repairs service if two-thirds of homeowners vote to change - effectively making it impossible. Equally, in private housing a two-thirds majority may also be needed to dismiss a property factor.

“There also seems to be no satisfactory recourse for homeowners unhappy with land-owning maintenance companies paid to upkeep land around their developments.

“We hope this focussed post-legislative scrutiny will achieve a positive outcome for the thousands of affected homeowners.”

The link to the call for evidence is below:
http://www.scottish.parliament.uk/parliamentarybusiness/CurrentCommittees/59280.aspx 

Background

The Scottish Parliament passed the Property Factors (Scotland) Act 2011, which aims to improve the quality of service provided by a property factor. However, the Title Conditions (Scotland) Act 2003 can affect how property factors are appointed and dismissed. Competition and service quality may be inhibited because the provisions of the 2003 Act can limit homeowners’ ability to change property factors. In addition, none of the Act’s provisions appear to deal effectively with the situation where homeowners are unhappy with the services provided by a land-owning maintenance company.