Date lodged: 15 June 2018
To ask the Scottish Government what action it is taking to ensure that landlords and tenants are not penalised by late payment administration fees by property factors while cost disputes are ongoing.
Answered by: Kevin Stewart 21 June 2018
The Property Factors (Scotland) Act 2011 (the Act) provides protections for homeowners who use the services of a property factor. This includes homeowners who may be landlords. The Act makes provision for a register of property factors, a Code of Conduct, which amongst other things sets minimum standards of practice where factors are applying late payment charges, and a route of appeal to the First-tier Tribunal for Scotland Housing and Property Chamber (First-tier Tribunal) where disputes arise. If a case relating to a disputed debt is accepted by the First-tier Tribunal and referred to a tribunal for consideration, the factor must not apply any interest or late payment charges in respect of the disputed items during the period that the tribunal is considering the case.
If a tenant has contracted with a landlord to pay factoring fees as part of their tenancy agreement the obligation to pay such fees will be a separate matter between the tenant and the landlord.