Reviewing Your Title Deeds Before Changing Property Factors
When planning to change your property factor, your title deeds are essential documents to review. Since there is no set format for title deeds, you may have some, none, or a combination of key provisions, and that's before you look at the quirks of the Sasine register.
Look carefully for any specific clauses regarding the process and legal requirements for changing factors, getting tuned in early will help prevent disputes with the outgoing factor. If anything is unclear, consider consulting a solicitor to help interpret and define your obligations, ensuring a smooth and compliant transition.
Decision Threshold:
Check if a majority, two-thirds, or unanimous agreement is needed among owners to change the factor.
Meeting Quorum:
Ensure that the minimum number of owners required to attend or submit a proxy is verified, so that any votes taken are valid.
Voting Method:
Some deeds still require face-to-face meetings, but others may allow online options. Make sure you meet these requirements.
Collecting Votes:
Ensure all owners have the chance to vote. Keep a record of votes and, where possible, signatures to avoid disputes.
Notification Rules:
Title deeds often specify how and when owners should be notified about a meeting to discuss factor changes (e.g., 14 or 28 days before).
Proxy Voting:
Verify if proxy votes are allowed and how they should be submitted.
Full Notification:
All owners (not just tenants) must be informed. You may need the current factor to help if you lack contact information for all owners.
Notifying Owners:
Email or letters are preferred. Avoid simply leaving notices in letterboxes, as these may not reach landlords.
Social Channels:
Group chats or pages can supplement notification but aren’t sufficient on their own unless all owners are confirmed participants.
Factor Assistance:
If needed, request the outgoing factor to notify owners, but allow extra time as they may not act quickly.
Removal Process:
Check for any specified process for removing or replacing the factor, such as a formal vote or notice period.
Appointment of New Factor:
Ensure the proper process is followed, which may involve appointing the new factor at a formal meeting, such as the AGM.
Notice to Current Factor:
Confirm the notice period required before ending the contract with the current factor, which could be several weeks or months.
Termination Process:
Check if notice must be given in writing and include any necessary signatures. It’s best to send a signed-for letter along with an email.
Responsibilities for Maintenance:
Review each owner's obligations for common areas. Inform the new factor of these responsibilities to ensure a smooth transition.
Cost Sharing:
Confirm how maintenance costs are shared among owners, which typically continues with the new factor.
Decision-Making Powers:
Some deeds grant specific powers to the factor or owners’ association. Ensure the new factor is aware of these.
Approval Levels:
Check if certain decisions require a higher threshold, such as major changes or expenses.
Common Area Responsibilities:
Identify responsibilities for communal spaces (e.g., stairwells, roofs, gardens) to ensure the new factor manages them effectively.
Liability Requirements:
Make sure the new factor can manage any joint legal liabilities specified in the deeds.
Sinking Fund Requirements:
If your deeds require a sinking fund for large repairs, check how it’s managed and confirm that the new factor can take this on.
Fund Transfer:
Arrange for any sinking fund held by the outgoing factor to be transferred securely to the new factor.
Existing Contracts:
Some deeds specify service providers (e.g., cleaning or maintenance). Decide whether to continue with these providers or retender services.
Tendering Requirements:
The deeds may require certain services to be put out to tender periodically—an ideal time to review contracts during a factor change.
Block Insurance:
Confirm how block insurance is managed and ensure the new factor can provide coverage that complies with your deeds.
Owners’ Association: If there is an owners’ association, involve them as necessary, as they may have specific powers in changing the factor.
Scheduled Works:
Some deeds may require specific cyclical work (e.g., painting) to be done at intervals. Ensure the new factor is prepared to manage these.
