All owners in a tenement building are responsible for paying their share of the costs for a common repair, as determined by their titles or the Tenements Act. Owners are responsible for paying for repairs as soon as a properly agreed decision to go ahead with work is reached.
However, when an owner sells their flat, getting them to pay for their share of the repair costs can be challenging. In this situation, owners can use the Notice of Potential Liability for Costs.
How does it work?
The Notice of Potential Liability makes both the selling owner and the new owner jointly responsible for the repair costs. This means that when selling the property, the notice is visible to those looking to buy.
Key steps
- The notice must be served through the Registers of Scotland.
- It needs to be lodged at least 14 days before the sale occurs.
- The notice is valid for three years but can be renewed.
- Only an owner in the same building or the property factor can serve this notice.
- The registration documents for serving the notice are complex, so seeking legal advice to help lodge the notice is highly advisable, as the notice is usually registered by a solicitor.
Other points to note
It is important to be aware that serving such a notice may cause tension within your building. If you have a good working relationship with your co-owner who is selling, it’s recommended to discuss the use of this safeguard beforehand. It may also be beneficial to seek community mediation support to help with recovering costs, prior to taking legal action.
Some property factors find this notice beneficial for enforcing repairs, as it allows costs to be recovered upon the sale of the flat.
You can find out if a Notice of Potential Liability has been served onto a property by purchasing a copy of the titles via the Registers of Scotland website.
For more information about the Notice of Potential Liability, including the legal reference and the downloadable form, check out this article.
