Property Factors (Scotland) Act 2011
The Property Factors (Scotland) Act 2011, which came into force on 1 October 2012, sets out minimum standards for property factors in a Code of Conduct, which requires that factors provide a Written Statement of Services to all owners.
East Ayrshire Council is authorised to act as factor for your block as:
- your title deeds allow the Council to manage common repairs or act as factor while it continues to own at least one property within your block
- the majority of the owners in your block have appointed the Council to act as factor, or
- the Council has acted as factor for your block by ‘custom and practice’
As your factor, we aim to provide a high quality, cost effective and responsive service. Information on the Act can be found at Scottish Government: Property Factors.
The Code of Conduct can be found at Scottish Government: Code of Conduct for Property Factors.
The Property Factors (Scotland) Act 2011 places a duty on all factors to register the address of the properties which they factor on a public Register of Property Factors, which is maintained by the Scottish Government. The Register of Property Factors can be accessed at Scottish Government: Property Factor Register.
Factoring services
Our main function as your factor is to manage the repair and maintenance of the parts of the block and services that are common to residents.
Examples of common parts of a block are:
- external walls
- roof
- close or common entry
- common pathways
- drying greens
Your title deeds specify your responsibilities in respect of your own property and the common parts of your block. Further details on common repairs can be found in the following publications:
As your factor, in return for payment of a management fee, we will:
- manage any repair and maintenance issues involving the common parts of your block
- organise the provision of services to the common parts such as close/entry lighting and cleaning, maintenance of communal areas as applicable
- undertake and/or appoint contractors to undertake common repairs and maintenance works
- arrange payments to contractors following the satisfactory completion of common repairs and maintenance works
- allocate the cost of common repairs and service charges between the properties in a block as specified in the title deeds, and issue invoices to owners for their share of the cost of the common repairs and service charges
- undertake periodic inspections of any common areas
- arrange for any necessary improvement works to the block, subject to consultation with and the consent of all owners
View further information on the factoring service we provide.
Charges
Factoring service charges
To cover the cost of providing the services detailed above, a management fee will be payable to the Council. The management fee is currently charged at £88.09 including VAT per annum.
This fee will be reviewed annually and will reflect the cost of providing the service. This fee, together with the proportionate share of the costs of any grounds maintenance, common area lighting/ cleaning and any other costs (if applicable) will be invoiced quarterly in arrears in January, March, July and October.
Our Factoring Service will give prior notification as appropriate of any changes to the level of management fee.
Common repair charges
In addition to factoring and service charges, you will also be due to pay a share of the cost of any common repairs, maintenance or authorised improvements to the common parts of the block.
The title deeds for a property will usually specify the arrangements for the management and maintenance of common parts, the procedure for making decisions and how costs are to be apportioned between owners. Where the title deeds do not make provision on specific points, the Tenements (Scotland) Act 2004 and the associated Tenement Management Scheme will apply.
Although it is not possible to generalise for all properties, owners will usually be responsible for an equal share of the cost of common repairs and maintenance of the common parts. For example, owners in a block of six flats will usually each be liable for a one sixth share of the cost of common repairs or maintenance works.
Charging arrangements
If we organise a common repair at your block, our Factoring Service, in most cases, will write to you providing a brief description of the work to be carried out and an estimate of your share of the cost.
Invoices for common repair work will be issued following completion of the repair and/ or included in the next quarterly factoring invoice. Invoices are payable upon receipt and payment options will be outlined on the invoice you receive.
If you wish to query a common repair invoice or any elements of your factoring invoice, the procedure will be outlined on the invoice.
Debt recovery process
If you have not paid your factoring charges or any common repair invoices issued within 14 days, you will receive a letter from us asking that the amount due is paid immediately.
If payment is not received, a final reminder will be issued. Should any sums due remain unpaid, the matter will be passed to our Governance - Legal Section to initiate debt recovery, which may include court action.
Accounts not settled on time will be subject to additional debt recovery charges, including court costs if applicable.
Details of the Council’s debt recovery procedure can be found at Litigation and advice.
It is important to note that failure to pay your factoring charges or common repair invoices can affect your future credit rating if a court action is initiated and is successful. Failure of owners to pay accounts on time may prevent us from delivering or instructing repairs or providing factoring services.
The Code of Conduct assumes a mutual obligation from both factor and owner and can only be delivered effectively where owners acknowledge their responsibility for their property.
Reporting common repairs
As factor, we will provide a response repairs service in respect of the common parts of a block.
Owners can telephone 01563 555555 to report common repairs during normal working hours (9am-5pm Monday to Thursday and 9am-4pm Fridays). Alternatively you can report as follows:
Emergency common repairs can be reported outwith normal office hours by telephoning 0345 724 0000.
*Emergencies outwith working hours will incur a minimum £50.00 call out fee. (Apportioned between all property owners within the block).
Repairs will be categorised by us and dealt with accordingly. The categories are as follows:
Emergency
In the case of emergency work, any owner can instruct work and recover the costs from others. Emergency works are those defined as repairs which:
- can’t wait for a scheme decision to be made and are required to prevent damage to your building
- are in the interests of health and safety
Maintenance - within agreed timescale
Maintenance work is carried out after the appropriate notification and where required agreement has been reached.
Thereafter the timescales are set according to the requirements of the work content. For example a small job may be carried out within relatively short timescales, where as a large complex job may require more time to plan and co-ordinate.
Communication and consultation arrangements
As detailed above, the Council generally retains the right to manage common repairs while it continues to own at least one property within a block.
Most types of common repairs, maintenance or redecoration works to common parts do not require the approval of owners prior to being instructed or carried out. In most cases, we will provide you with advance notice of the common repairs or maintenance works to be instructed, together with an estimate of the cost. The only exception to this are essential ‘wind and watertight’ or emergency repairs, which any owner has the right to instruct in terms of the Tenements (Scotland) Act 2004 and the Tenement Management Scheme. In these cases, notification of the repair/cost will be issued at the earliest opportunity.
In certain areas the title deeds require that the factor consults with owners prior to the instruction of major common repair works, where the cost of such works is in excess of a specified amount. If the anticipated cost of any repair exceeds this sum, we will contact you in advance to obtain the consent of a majority of the owners.
Any improvement works to the block will be subject to prior consultation with, and consent of, all owners.
We will endeavour to respond to enquiries within five working days of receipt. If further time is required to respond to the enquiry, the owner will be notified in the preferred form of communication (for example letter, email, telephone) giving the reason for the additional time required.
Building insurance
It is essential that all owners have buildings insurance to cover the reinstatement cost of their property in the event of damage or destruction. As a minimum, a buildings insurance policy should include cover for fire, flood, storm damage, vandalism and malicious damage.
In addition, the owners of common parts should ensure that insurance cover is in place to cover third party liability in respect of the common parts of a block.
The Council insures any properties which it owns and maintains insurance cover in respect of its interest in the common parts of the block. Owners are responsible for ensuring their property is fully insured.
Changing factor
As detailed above, your title deeds may allow us to act as factor or we may act as factor by ‘custom and practice’ due to managing common repairs within a block. Should this no longer be the case, your title deeds may contain provisions outlining the procedure for changing factor if a majority of owners are unhappy with the present arrangements.
If your title deeds do not make specific provision in this regard, the Tenements (Scotland) Act 2004 and the associated Tenement Management Scheme and the Title Conditions (Scotland) Act 2003 set out a procedure whereby a majority of owners can appoint/dismiss a factor.
The Council reserves the right to withdraw the Factoring Service and terminate its role as your factor. If we do this, we will provide you with advance notice in writing to allow you to make alternative arrangements.
Complaints
We aim to provide owners with a reliable and efficient service at all times. We take complaints about our services seriously and deal with them in confidence. Information from customer complaints is used to improve services to prevent the same problems happening again.
If you do have cause to complain about the factoring service, you can do so by following our complaints procedure.
Data protection
For the purposes of the Data Protection Act 1998, the Council is the Data Controller of your personal information and must tell you how it will use and share that information.
Your personal information, comprising of your name and address, will be used by us to operate our Factoring Service.
Accordingly:
- we will use your personal information as a factoring customer, comprising of your name and address, to operate our Factoring Service
- we will include your address (but no personal information) in the public Register of Property Factors, maintained by the Scottish Government
- we will hold your personal information on a secure database and will not allow access to it by unauthorised users/personnel; your personal data will be removed from the database if you cease to be a factoring customer.
If you need further information about how your personal information will be used, held and shared by the Council or used and held on the Register of Property Factors you should contact our Factoring Service Team.
Declaration of interest
The Council retains ownership of properties, which have not been subject to the Right to Buy.