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Land Reform (Scotland) Act 2003: Part 2: Community Right to Buy: Guidance

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Land Reform (Scotland) Act 2003: Part 2
Community Right to Buy: Guidance

3 GUIDANCE FOR THIRD PARTIES

3.1 Who is a third party?

1. Under Part 2 of the Act, a third party may be a member of the community as defined by the CB under section 34(5), or any person who has a known interest in the registered land and who would be willing to buy the land at a higher price than others would be expected to pay, or a person who has a right of pre-emption, redemption or reversion over the registered land.

3.2 Identifying your rights

2. Most individuals with any legal rights in or over land should be aware of their rights. You should consider the effects of the CB's registered interest or it proceeding with its right to buy on your rights. If details of your rights are contained on the Sasine or Land Registers held by the Keeper of the Registers of Scotland, these details should appear on the CB's application form to register an interest in the land and, if the registration is approved, will then appear on the RCIL. If these details are incorrect, you should inform the CB and the Land Reform Branch. There is no legislative requirement for you to do so, but this may ensure you have your say in the CRTB process.

3.3 Effect of the CRTB on your rights

3. Section 65 of the Act stipulates the effect the CRTB has on pre-emption, redemption and reversion rights. Generally, any legal right you have in the registered land is likely to be suspended from the time the CB confirms it wishes to exercise its right to buy and is revived on completion of the transfer, or if the right to buy does not proceed, for whatever reason.

Member of the community

4. If you are a member of the community, as defined by the CB under section 34(5), you will be entitled to vote in the ballot required to demonstrate support for exercising the right to buy. If you meet the criteria set out in section 34(5), you should ensure you have a right to vote in the ballot. You should discuss this with the CB prior to the ballot or, if you discover a ballot in which you had a right to vote has taken place without your knowledge, you should inform the CB and the Land Reform Branch of that fact.

Third party purchaser

5. The legislation also provides third parties with certain other rights. For example, if the CB is exercising its right to buy registered land and a valuer has been appointed, section 59(7)(a) of the Act requires the valuer to take account of the known existence of a person who would be willing to buy the land at a higher price than others would be expected to pay. While this would not allow you to buy the land, it does ensure that your views are taken into account. You may then have an opportunity to buy the land if the CB decides not to proceed with the purchase.

3.4 Appeals

6. As a third party, you also have a right to appeal, under section 61(3) of the Act, against Ministers' decision to enter a community interest in the RCIL or to consent to the CB exercising its right to buy. This is further detailed at Annex C.

3.5 Providing information to Ministers

7. If you wish to provide information to Ministers, this should be sent to the Land Reform Branch at the address in Annex E. If the information is of a sensitive nature, for example regarding any breach of the provisions of the Act, this can be done in confidence, and will be treated as such.

3.6 Compensation

8. Section 63 of the Act provides for any person (other than a CB) who has incurred loss or expense arising from the operation of Part 2, which is additional to costs normally incurred during a transaction of land and any moveable property, to claim compensation. Any person who has incurred loss or expense due to suspension of their right of pre-emption, redemption or reversion is also entitled to compensation. The circumstances in which compensation is payable are set out in section 63(1) of the Act and the procedures for recovering costs are set out in the Community Right to Buy (Compensation)(Scotland) Regulations 2004.

9. Section 63(3) states that compensation following the exercise of the CB's right to buy is restricted to the 6-month period allowed for the land to be transferred to the CB, and any compensation beyond that period should be resolved between yourself, the landowner and the CB.

10. Section 63(4) refers specifically to individual rights of pre-emption, redemption and reversion.

11. Section 64 of the Act allows the claimant to appeal to the Lands Tribunal for Scotland against Ministers' decision on compensation within 21 days of the decision. The Lands Tribunal may substitute its decision on the amount payable for that of Ministers.

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Page updated: Wednesday, May 17, 2006