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Factors' Act Introduced

On 1st October 2012, the Property Factors (Scotland) Act 2011, and its associated Code of Conduct, came into force. Until then, property factors had been unregulated leading to unscrupulous activities in some firms. Now, all operating Factors in Scotland must be formally registered and approved by the Scottish Government.

The Code of Conduct provides a number of key requirements with which the Factor must comply to ensure that the customer is treated fairly and in accordance with the regulations.

The main areas of compliance detailed in the Code of Conduct are as follows:

  1. Written statement of services
  2. Communication and consultation
  3. Financial obligations
  4. Debt recovery
  5. Insurance
  6. Carrying out repairs and maintenance
  7. Complaints resolution.

Compliance with each of these sections will ensure the customer is treated fairly, honesty and within agreed timescales and levels of clarity. A formal dispute resolution is also now in place through the Homeowners’ Housing Panel, HOHP.

Strathspey Director, Douglas Weir, himself an expert in regulatory compliance issues, welcomes the introduction of the new Act.

This Act will ensure that those Factors, previously operating unscrupulously, will be exposed and will either have to significantly alter their business operations or exit the industry. This can only be good for professionals and customers alike”

For further information on the Factors’ Act and the Code of Conduct, please contact douglas.weir@strathspeycapital.com

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