Case Study
Summary of Consultation Paper
Tuesday 24th June 2008
Property Factors (Scotland) Bill Consultation Paper (proposed by Gordon Jackson, the outgoing MSP for Glasgow Govan).
The activities of property factors are often a source of concern for homeowners, who are unhappy with invoices which they perceive to be excessive and have high rates of compound interest and penalty charges. In many cases home owners find it impossible to resolve basic disputes with their factors and are unable to pay for a private arbiter or raise sheriff court proceedings due to the financial implications.
Another concern is that factors are unregulated in Scotland.
The proposed Bill had two main aims:
To create a registration scheme where persons appointed to manage properties would be required to meet a "fit and proper person" test. This was intended to prevent unreasonable practices.
To provide a form of accessible and straightforward dispute resolution where home owners and factors could resolve contractual disputes without prohibitive legal expenses.
The proposal fell at dissolution of Parliament in May 2007 and Gordon Jackson was not re-elected to the Glasgow Govan seat. It is unlikely that the Bill will be re-introduced, however as it remains a concern among affected home owners a similar proposal may be put forward in the future.
Missives for Newbuild Houses (Scotland) Bill Public Consultation Document by Helen Eadie MSP
Due to the increase in the numbers of Newbuild properties being constructed each year, one of the main issues raised by prospective Newbuild home owners is the difficulties buyers face when their properties are not ready for entry within agreed timescales. Contracts issued in the sale of Newbuild properties in Scotland do not afford buyers the same protection as those who buy existing properties. There is no fixed date of entry and purchasers can incur extras costs when the developer fails to meet the estimated entry date.
The Bill proposed to make it possible for buyers who have not had their entry dates met by developers to withdraw from missives without penalty. Furthermore, a developer in these circumstances would be required to meet the buyer's expenses.
Although the Bill has fallen at dissolution Helen Eadie has advised that she will be seeking to re-introduce this at some point.
A consultation will be run and the proposal published in the Business Bulletin of the Scottish Parliament with details on consultation. The consultation will run for a minimum of three weeks at which point interested parties can e-mail their responses directly to Helen Eadie
The final proposal is then lodged accompanied with details of the consultation. The proposal is published in the Business Bulletin for one month to gather support.
If the Bill gathers enough support it will be introduced in Parliament.