Commission launches tenement owner association project
Ministers have requested the Scottish Law Commission to consider changes to the law in order to establish compulsory owners’ associations for tenement properties.
The Commission has begun a project following a reference under the Law Commissions Act 1965 from Cabinet Secretary for Social Justice, Housing and Local Government Shona Robison.
It asks the Commission: "To review the law of the tenement in Scotland, including the Tenements (Scotland) Act 2004, and make recommendations for reform to implement recommendation 2 (establishing compulsory owners’ associations) of the Final Recommendations Report dated 4 June 2019 of the Working Group on Maintenance of Tenement Scheme Property.
"Your recommendations should include proposals on the establishment, formation and operation of compulsory owners’ associations and the rights and responsibilities to be imposed on them, including, insofar as you consider appropriate and desirable, such rights and responsibilities in relation to recommendations 1 (building inspections) and 3 (establishment of building reserve funds) of the report."
The proposal for compulsory owners' associations was one of three main recommendations of the working group, along with a requirement for buildings to be inspected every five years, and the establishment of building reserve funds. Associations would have legal personality with power to enter into contracts; would be required to hold an annual meeting, to prevent absent or apathetic owners holding up repairs; and would have the ability to control an annual repair plan and budget. The working group also suggested that due to the legal complexities, the matter should be referred to the Commission for further development.
Led by commissioner Professor Frankie McCarthy, the Commission is now carrying out a preliminary scoping exercise to identify the legal issues which arise, and will shortly put in place an expert advisory group to support work on the project.
It intends to engage widely with stakeholders who may be affected by the subject matter, and will provide further details on plans for engagement as the project progresses. It hopes to issue a discussion paper in autumn 2023. It estimates spring 2026 for its report and draft bill.
Click here for the Commission's project page.