r/Scotland • u/TimesandSundayTimes • 1d ago
Revealed: the great property factor scandal
https://www.thetimes.com/uk/scotland/article/revealed-homeowners-face-big-bills-from-factors-they-cant-hold-to-account-cqj888hc5?utm_source=reddit&utm_campaign=scotland&utm_medium=story&utm_content=brandedOne year after Kristian Stevenson bought his first flat, the 34-year-old received an unexpected demand for £4,000.
The property factor who looks after the roof, garden and maintenance of his tenement flat in Cessnock, Glasgow, claimed that he was liable for a debt owed by somebody else in the building.
The letter from 91BC, which manages almost 4,430 properties, said: “Our role as factor is to facilitate communal works and charges relating to your building. We have exhausted our debt collection process and as a last resort, we must reapportion this debt to you.”
The £16,000 bill for the building, which Stevenson said was run up before he purchased the two-bed property, had never been mentioned in conveyancing and he was liable to pay £4,200. Nothing existed in the title deeds to suggest he would be culpable for somebody else’s debt. The factor said the deeds were outdated and he must pay the bill according to their written statement of service, which he said he did not receive until two years after moving into the property he bought for £180,000.
The statement of service did state that homeowners were jointly liable for debt, even if they did not cause this themselves, as is the case for most property factor contracts.
Stevenson, a freelance TV and film production co-ordinator, pays about £130 a month to 91BC and said the “absurdly high bill” included £6,000 in late payment fees and legal fees the property factor paid when chasing the other owner’s debt.
“If I was to pay this off it would wipe out any savings I’ve rebuilt,” he said. “A substantial bill without notice, consultation or even a real explanation is both unethical and a poor business strategy.
“Dealing with a massive sum of money like that puts significantly a lot of pressure on me.”
There are hundreds of thousands of property owners like Stevenson across Scotland collectively paying tens of millions of pounds each year to factors who are almost impossible to hold to account.
A long multi-step complaints process, which requires homeowners to compile evidence and documents and often take legal advice, has been blamed for poor regulation and accountability of property factors.
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u/AltoCumulus15 1d ago edited 1d ago
I had this issue recently with my factor - they’ve put a letter out to say if they can’t recover the debt then the rest of us will have to pay.
I looked up the legislation and unfortunately the Scottish Government has allowed this in law. So the factor is liable for almost no risk, which is then distributed to the other owners.
The only way to change this it through legislation to give owners some rights over the factors.
Thankfully in my case the debt is low, but a friend has had a much larger demand come through.