The Scottish Law Commission has published its long-awaited report on how compulsory owners’ associations for tenements can be introduced.
The Commission was asked by the Social Justice Secretary in January 2022 to examine this area of law and make recommendations for reform.
Establishing an owners’ association for every tenement building was one of three recommendations made by the Scottish Parliament’s Tenement Maintenance Working Group. The other two recommendations – mandatory reserve funds and mandatory five-yearly building inspections – were not examined in the report.
Their recommendations include:
- The establishment of owners’ associations in tenement properties by operation of law at specified points in time.
- The imposition of four “key duties” on each owners’ association, including a duty to appoint a manager for the association and a duty to hold an annual general meeting, and the power to enforce these following an order from the First-tier Tribunal for Scotland.
- Having tenement disputes dealt with principally in the First-tier Tribunal rather than the Sheriff Court as at present.
- A default set of association rules governing the operation of the association.
“I welcome the Scottish Law Commission’s Report on Tenement Law: Compulsory Owners’ Associations, and commend its clear, practical proposals to address Scotland’s long‑standing challenges in tenement management and maintenance."
“These reforms, coupled with the proposed legal framework, will significantly strengthen protections for homeowners and residents. While not a “silver bullet”, it undoubtedly serves as the “starting gun” for systemic change.” - David Doran, Chair of The Property Institute Scotland
Read the report HERE.