The Code of Conduct of Property Factors in Scotland

In February 2021 we updated you on the draft legislation that was published to ensure property factors follow consistent standards

In July 2021 the Scottish Government published the final version of the new code of conduct for property factors. This replaced the original code on 16 August 2021.

The code sets out the minimum standards of practice that registered property factors must adhere to in the provision of their services and encourages transparency in the way that they conduct their business. The new code also aims to improve clarity and flexibility for property factors in Scotland.

All registered property factors are required by law to ensure compliance with the code.

As a reminder, some of the key features of the new code are:

  • A clarified definition of what constitutes a Factor. For example, this does not include a group of homeowners 'self-factor' or carry out ad-hoc repairs of their own volition without the use of a property factor.
  • Factors must now take “all reasonable steps” to ensure that a written statement of services (WSS)is provided within 4 weeks.
  • A new obligation for the Factor to engage in improved communications with homeowners, for example providing paper copies of documents on request.
  • New rules on the debt recovery process include a duty for the Factor to treat customers "fairly with forbearance and due consideration to provide reasonable time to comply" and flag the availability of debt advice services and information
  • The Factor’s responsibility to keep homeowners informed of progress of repairs has been strengthened – estimated timescales should be provided generally and in the event of cancellations advice on next steps and financial arrangements should be provided.
  • Clarification on the procedure and information that must be provided when one Factor takes over from another. This includes the duty on the previous factor to deal with all complaints raised in its tenure.

View the full code here Property Factors (Scotland) Act 2011: Code of conduct for Property Factors

What happens next?

The new code is now in force and must be adhered to by all Property Factors in Scotland. For our advice on how to prepare for the new code, contact Louise Gould, Operations Manager in TLT's Commercial Dispute Resolution team in Scotland.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at August 2021. Specific advice should be sought for specific cases. For more information see our terms & conditions.

Date published

16 August 2021


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