Public consultation on Property Factors (Scotland) Act 'Code of Conduct'

The Scottish Government has launched 12-week consultation on a proposed statutory Code of Conduct, to be made under the Property Factors (Scotland) Act 2011, which was passed by the Scottish Parliament earlier this year.

Property managers administer communal areas, roofs and stairwells in an estimated 225,000 flats and tenements across Scotland. Land maintenance companies look after the common green space on many new housing estates. The act, which comes into force no later than October 1, 2012, aims to provide protection for homeowners in Scotland who receive services from property factors.

Compulsory registration for all property factors and a tribunal based dispute resolution process for homeowners will be introduced.

Minister for Housing and Transport, Keith Brown said: "Property managers have an important role to play in maintaining and improving housing stock condition and open space. While the majority of property factors provide a good, effective service, the Scottish Parliament voiced concerns about how some property and land management services are delivered".

"The act will provide protection for homeowners in Scotland who receive services and the code of conduct is a central element of that act. “I would urge everyone with an interest in this important issue to respond to the consultation.”

During the consultation period the Scottish Government will hold a series of consultation workshops for property factors and for homeowners and members of the public. The act was introduced as a member’s bill drafted by GLC on behalf of Glasgow MSP, Patricia Ferguson. The Scottish Government supported the bill and worked with Ms Ferguson to make the legislation as effective as possible.

The consultation will run from Monday 26 September until Friday 16 December.

Property Factors Bill debated before full Scottish Parliament on Wednesday

The Scottish Parliament will debate the Property Factors (Scotland) Bill at Stage 1 on  the afternoon of Wednesday, 8 December 2010.  This is a make or break moment for the Bill.  The Bill, drafted by Govan Law Centre's Parliamentary Unit for Patricia Ferguson MSP, has secured the backing of the Parliament's Local Government and Communities Committee, and also has wide public support across Scotland.  However, the Bill now needs to secure the support of MSPs in the full Chamber on Wednesday in order for it to progress.

Sheriff reduces property factors bill by 55%

In the case of Walker Sandford Property Management Ltd v. Mushtaq, Sheriff Ross ruled today that a property factor was not entitled to charge a Glasgow consumer monthly interest at 2.5% (equating to 30% APR) as the consumer had never agreed to the factor's contractual terms and conditions.  

Terms and conditions needed to be expressly or impliedly agreed at the outset of the arrangement or adopted by the parties' clear, specific, unequivocal actions. Simply adding the terms and conditions to an invoice was never a way of having conditions adopted. Accordingly, the factor was only entitled to payment in terms of the title deeds, and no interest was chargeable at all in terms of the title deeds.  Such charges therefore fell to be deleted.

Sheriff Ross also reduced the sum charged for second and subsequent monthly reminder/demand letters by one-third from £12 to £8.  Overall the sum sued of £2,678.55, was reduced to £1,213.13, resulting in a 55% reduction in the customer's bill. The action was dismissed with no expenses due to or by either party. The defender was represented by GLC's Iain Nisbet, solicitor and partner, and the pursuer's by Messrs Peacock Johnson Solicitors.

In cases highlighted by BBC Scotland last year, Sheriff Rae expressed concern at the amount of penalties levied by Walker Sandford Property Management Ltd, and in the end the company agreed to drop all penalty charges and interest.  In the past, Walker Sandford had previously issued remider/demand letters on a weekly basis, but now do so on a monthly basis for customers in arrears.

Morning Extra on BBC Radio Scotland

Listen to the programme again on the BBC iPlayer; Watch the BBC's video on this topic again.

Property factors and the practices of Glasgow-based Walker Sandford Property Management Ltd - which were exposed on tonight's BBC Reporting Scotland - will be the subject of discussion on BBC Radio Scotland's Morning Extra tomorrow morning, Friday 11 September 2009 from 9am. If you've had a bad experience with Walker Sandford Property Management Ltd or any other property factor you can call the show live tomorrow morning. Mike Dailly, GLC's Principal Solicitor, will be there to explain what homeowners can do to protect their legal position.