Property factors when you sell a flat

What a factor is and is not

A factor arranges common repairs, insurance, stair cleaning and grounds maintenance, and bills each owner their share. The factor does not own the building; the owners do, and the factor acts on their instructions and on the authority in the deeds.

In Edinburgh many stairs are self-factored by the owners themselves. That is entirely lawful, and simply means the paperwork sits with the owners rather than with a firm.

Your legal protections

Every factor operating in Scotland must be registered and must comply with the Property Factors Code of Conduct, which covers written statements of services, transparent charging, timescales for responding to complaints and how funds are held.

If a factor fails to meet the Code, an owner can apply to the First-tier Tribunal for Scotland (Housing and Property Chamber) after raising the complaint in writing with the factor first.

What you need from the factor to sell

A written statement of the account: the float or deposit held, any arrears, the last three years' charges, works instructed or agreed but not yet invoiced, and the building insurance position.

The float is normally repaid or transferred at settlement, and the arrangement is set out in missives. Give your solicitor the factor's details as soon as you decide to sell, because factor statements are a frequent cause of settlement delay.

Changing or removing a factor

Owners can change factor by majority decision under the Tenement Management Scheme or under the terms of the deeds, giving the required notice. Sellers rarely need to, but a live dispute with a factor should be disclosed.

Before you market: checklist

1. 1. Find the factor's registration number on the Scottish property factor register
2. 2. Request a written statement of account as soon as you decide to sell
3. 3. Check the float and how it is dealt with at settlement
4. 4. List any works instructed but not yet invoiced
5. 5. Confirm the block insurance policy and its renewal date
6. 6. Give the factor your solicitor's details to speed up the sale pack

Common questions

What does a property factor's statement need to show for a sale?

The current balance and any arrears, the float or deposit held, recent charges, any works agreed or instructed but not yet billed, and the common buildings insurance position. Your solicitor uses it to apportion costs at settlement.

Is my factor's float refunded when I sell?

Usually it is either returned to you or transferred to the buyer with an equivalent adjustment to the price at settlement. Missives specify which, so raise it with your solicitor rather than the factor.

How do I check a factor is registered in Scotland?

Search the Scottish Government's register of property factors. Operating unregistered is an offence, and the register also records the firm's registration number, which the factor must quote in correspondence.

Can owners in an Edinburgh stair get rid of their factor?

Yes. Owners can dismiss and appoint a factor by majority under the Tenement Management Scheme or the terms of the title deeds, subject to the notice period in the statement of services.

What if my factor has not carried out repairs I have paid for?

Complain in writing under the factor's own complaints procedure first. If that does not resolve it, an application can be made to the First-tier Tribunal for Scotland, which can order the factor to act.