Title conditions, factoring and common repairs in Scotland

Scotland does not have the leasehold system used in England. Almost all homes are owned outright. But owning outright does not mean you can do anything you like, and if you buy a flat you will share responsibility for the building with your neighbours.

Why leasehold isn't the issue in Scotland

Feudal tenure was abolished in Scotland in 2004, and almost all remaining long residential leases were converted to outright ownership in 2015. So the question for Scottish buyers is not "how long is the lease?" but "what are the title conditions and shared costs?"

Title conditions

Title conditions, often called real burdens, are obligations written into the title deeds. They bind whoever owns the property. Common examples:

• A duty to maintain shared parts, and a rule for how costs are split
• Restrictions on using the property for business
• Restrictions on alterations, extensions or building in the garden
• A requirement to have a factor, or rules on how one is appointed

Your solicitor examines the title and reports on anything unusual, usually after your offer is accepted. If something matters to you, such as plans to extend or run a business from home, tell your solicitor early.

Want these checks done for a listing you’re looking at? Get a free report.

Property factors

Many flats and newer developments have a property factor who manages shared areas: arranging repairs, cleaning, insurance for common parts and landscaping. Owners pay a management fee plus their share of the work.

• Factors must be registered with the Scottish Government and follow a Code of Conduct.
• If you have a dispute with a factor, you can apply to the First-tier Tribunal for Scotland (Housing and Property Chamber).
• Owners can often change factor if a majority agree, depending on the title.

Before you offer, ask for the annual factor fees, what they cover and whether a sinking fund (a reserve for future repairs) is held.

Common repairs in tenements

If you buy a flat in a tenement or block, you will share responsibility for parts of the building such as the roof, external walls, stair and close. Your title deeds set out how costs are shared. Where the deeds are silent or unclear, the Tenement Management Scheme in the Tenements (Scotland) Act 2004 fills the gaps.

Shared repairs can be expensive. Roof, chimney and stonework repairs on older buildings can run to thousands of pounds per flat.

What to check before you offer

• Is there a factor? What are the fees, and is there a sinking fund?
• Are any common repairs planned, agreed or outstanding?
• What does the Home Report say about the roof, chimneys and external walls?
• Are there any restrictions in the title that conflict with your plans?
• Has the building had any statutory notices from the council?

Your solicitor can make some of these checks after your offer is accepted, but asking the agent before the closing date helps you set a realistic price.