Land-owning land maintenance companies: voluntary code of practice

Introduction

This Voluntary Code of Practice (“the voluntary code”) provides a process for homeowners to dismiss and replace a land-owning land maintenance company (“LOLMC”), introducing minimum standards that the Scottish Government expects from all parties. The first part of the voluntary code sets out the things homeowners should be aware of or should do when seeking to replace or dismiss a LOLMC. The second part sets out the things a LOLMC should do. Please note that in both parts of the voluntary code there is reference to an “application”. There is no specific application form for completion. The initial approach to the LOLMC by correspondence sent by email or post will be deemed as an “application” throughout this Code.

A LOLMC is a property factor who maintains and manages the open spaces in a housing development, such as Sustainable Urban Drainage Systems (SUDS), woodland or play parks. LOLMCs own the open spaces that they manage, unlike other types of property factors who manage open spaces owned by others, such as the homeowners in a development.

Obligations to maintain the open spaces are imposed on the LOLMC by title deeds while homeowners in the development are subject to reciprocal obligations to pay for those services, which is usually done by way of an annual management fee paid to a LOLMC by individual homeowners.

Since LOLMCs own the open spaces that they manage, the Scottish Government understands that a different process is required where homeowners wish to dismiss and replace their LOLMC compared to homeowners who own their open spaces and employ a property factor to manage it (which is understood to be the more common type of property factor arrangement).

This voluntary code deals only with LOLMCs and is separate from and additional to the Property Factors Code of Conduct (“the Code”). The Code applies to all property factors, whether they are LOLMCs or otherwise. Homeowners should continue to use the Code for redress of breaches to which it is applicable.

Although the process laid out here for the dismissal of a LOLMC is voluntary, it reflects the Scottish Government’s expectations about the standards that should be adhered to by all LOLMCs and homeowners. Should it become apparent that the standards expected of parties are not being adhered to, the Scottish Government may consider taking further action to improve the process, including consideration of legislative options.

While the Scottish Government cannot become involved in individual disputes between parties, comments on the operation of the voluntary code and developments in best practice will be collated and considered as part a review of the voluntary code to be carried out after three years of operation.