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106. Part 6 of the draft Bill outlines a Development Management Scheme. It is based upon the Management Scheme B contained in the Scottish Law Commission's Report on the Law of the Tenement (Scot Law Com No 162). It provides an optional example of good practice which developers may choose to adopt. The scheme is not confined to tenements, and can be adapted for use in other developments with shared facilities.
The Executive believes this scheme will be a very useful model for developers, which will protect both their interest and the interests of the individual owners. It will help to make it clear where obligations and liabilities lie, and therefore to reduce the scope for conflict.
107. Section 60 of the draft Bill introduces the scheme, the rules of which are detailed in full in schedule 3. This contains a number of rules that provide for an owners' association, an advisory committee, annual meetings, and financial matters.
108. The Commission opted for a set of general principles rather than a detailed and complicated scheme which might not be used. The scheme can be fine-tuned to allow for local idiosyncrasies. A deed of application for the scheme can be registered against the whole estate (rather than the individual housing units) to provide for the maintenance and regulation of shared facilities. The owners in the development will then become members of an owners' association which manages the development. Owners can be reluctant to attend meetings or otherwise play an active part in the management of the development, so it is proposed that a manager be designated as an agent of the association.
109. Although similar, the scheme rules are not real burdens. The obligations stem from membership of the owners' association. However, because of the similarity with burdens, section 61 provides that various provisions in the Bill will apply to the Scheme. These include the rules for content, acquiescence, negative prescription, and discharge by the Lands Tribunal. This avoids possible attempts to use the scheme to circumvent the reforms of the rest of the Bill. Sections 62 to 66 contain various provisions on variation of the scheme, and section 67 provides for an application to the sheriff court for annulment of certain decisions.
The Executive believes that the proposed Development Management Scheme would be a helpful model.
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