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Land Reform: Proposals for Legislation

 

4 Community Right to Buy

 

4.1 The proposed legislation will give community bodies the opportunity of buying the land where they live and/or work as and when it comes to be sold.

Right to buy process

4.2 Whenever an eligible property is publicly or privately offered for sale, a community body that has registered an interest in it will be able to exercise a right to buy. The community body should notify the landowner and Scottish Ministers, prior to the minimum closing date, of its intention to exercise its right to buy.

4.3 A Government-appointed Valuer will assess the price. Any disputes will be settled by the Lands Tribunal for Scotland.

4.4 Before the purchase goes ahead, the community will be balloted, and Scottish Ministers notified of the outcome. If the ballot is positive, Ministers will then give final approval for the community right to buy to go ahead. The community body will have a set period to come up with the purchase price.

4.5 In the event that the community body pulls out of the purchase, the landowner can then go ahead to dispose of the property without the proposed legislation having further impact.

Price

4.6 This will follow the format for compulsory purchase, which is well precedented and well understood. The purchase price will therefore be as assessed by a Government-appointed Valuer. The price will be the Valuer's best estimate of the price that the property is likely to command on the open market based on evidence of similar properties and other factors. Inadequately compensating the landowner is not tenable given European Convention of Human Rights requirements. Either party will be able to appeal immediately against the valuation price to the Lands Tribunal for Scotland, and the period for considering the appeal will be short so as not to slow up the process.

Level of community commitment

4.7 A minimum percentage of those aged 18 or over who live and/or work on the land in question must support the proposed purchase. It is for consideration what the percentage should be: 25%? 40%? 50%? The burden of community landownership will inevitably be a heavy one, and communities which have demonstrated a clear commitment to purchase will be best able to cope with the ongoing responsibility. The Scottish Minister must be notified of the outcome of the ballot, and will then give final approval for the community right to buy to go ahead.

Maximum period until closing date

4.8 The community body will then have a maximum period of 6 months to come up with the necessary funding.

Compensation

4.9 The proposed legislation will include provision for the Government to pay compensation where directly and wholly related to the process of community purchase. Again, decisions on compensation will be appealable to the Lands Tribunal for Scotland.

4.10 Here is a simplified flowchart showing how the various community ownership processes fit together:

Community Ownership Diagram gif

 

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