Community Rights to Buy: overview
Guidance on Community Rights to Buy - legal powers for communities across Scotland to acquire land.
Community Right to Buy (“the Part 2 Right to Buy”)
The Community Right to Buy was introduced under Part 2 of the Land Reform (Scotland) Act 2003 and is colloquially known as “the Part 2 Right to Buy”.
Communities who identify a need for ownership of land or buildings can apply to register a community interest in buying them. A successful application gives the community the first option to buy if the owner offers the land or building for sale.
It does not prevent the current owner from exercising any of their rights over that land, including the right to develop or lease their land or building, or to obtain planning permission.
An application to register a community interest in land must show sustainable development benefits for the land and the community.
It is not intended to preserve the status quo or to block or hinder development.
The information and links below will guide compliant community bodies through the process of applying to register a community interest in land and exercising the Right to Buy.
Applying to register a community interest in land
These links will help any community wishing to use the Community Right to Buy, and is essential reading for any community body wishing to submit an application:
A compliant community body wishing to apply to register a community interest in land is required to complete a community right to buy application form and demonstrate a level of community support alongside its application:
- Community Right to Buy: application form
- Community Right to Buy: application form guidance
- Community Right to Buy: petition template
The completed application form, including maps, a petition showing community support and supporting documentation, should be emailed to the crtb@gov.scot mailbox.
We recommend that you first submit a full draft application.
We will assess the draft application form for any compliance issues, i.e. mandatory criteria which must be met before Scottish Ministers can consider your application.
Please note that Scottish Ministers will not accept and process an application until the final, signed and dated version is received in full.
When the final application is submitted to Scottish Ministers, all documents included within that application will be sent to the owner and any heritable creditor for their comments. The application and supporting documents will also be entered in the Register of Community Interests in Land.
A temporary prohibition is placed on the owner and, where relevant, the heritable creditor. This prevents them from taking steps to transfer or dispose of the land until a decision is made on the application.
Ministers will consider all comments received when deciding whether to approve or reject the application.
A successfully registered community interest in land will remain in place for five years.
During this period, the owner is prohibited from transferring the land for value. The owner can develop or lease the land during the five-year period.
A registered interest can be renewed by the community body for a further five years, in the six months preceding the expiry of its existing registration.
A re-registration application must be completed alongside a new petition demonstrating community support:
- Community Right to Buy: re-registration application form
- Community Right to Buy: re-registration petition template
Exercising the Right to Buy: the right of first refusal
When an owner decides to transfer the registered land, they must notify Scottish Ministers and the community body of this by completing and sending a schedule 6 form:
This notification “triggers” the Right to Buy and the community body is given the opportunity to purchase the land. This is known as the “Right to Buy stage” and forms the second part of the Community Right to Buy process.
After receiving confirmation from the owner that they wish to transfer the registered land, Scottish Ministers will write to the community body to request confirmation that it wishes to proceed with the purchase.
The community body will have 30 days to confirm whether they wish to proceed with the purchase or not. If the community body declines to proceed with the purchase, the registered interest will be deleted.
Where a “late” application (one that has been received after the owner has taken steps to transfer the asset) is approved by Scottish Ministers, the owner is deemed to have already given notice of the proposed transfer, meaning the Right to Buy is activated from the date on which Scottish Ministers approve the application.
Information on “late” applications is provided within the Community Right to Buy: guidance book, which must be read prior to submitting an application. Late applications should only be submitted in exceptional circumstances.
Valuation of the land
When a community body confirms it wishes to proceed with exercising its Right to Buy, Scottish Ministers will appoint an independent valuer to conduct a full market valuation of the land.
The valuer will contact the community body and owner to request any views they may have on the value on the land. The valuer will consider these views when determining the market value of the land.
The valuer has eight weeks to produce their report and the price to be paid by the community body will be one of the following:
- the amount agreed between the two parties. Both parties can agree a different price to that of the valuer
- if no agreement is reached, the market value of the land as assessed by the valuer
- if the valuation is appealed, by either party, the amount determined by the Lands Tribunal for Scotland
Ballot of the community
Following the valuation, Scottish Ministers will appoint an independent ballotter to conduct a ballot of all eligible voters within the community body’s defined community.
Once a ballotter has been appointed, the community body must complete a Schedule 10 form providing all relevant information to the ballotter:
The results of the ballot will normally be returned to Scottish Ministers within 12 weeks of the appointment of the valuer.
At this stage, the community body must submit a Schedule 12 information form providing further details in relation to sustainable development and public interest.
A business plan and/or feasibility study may also be submitted.
The information form and any supporting evidence must be submitted on or before the date the ballot results are to be submitted by the ballotter:
Scottish Ministers will carefully consider all evidence submitted by the community body, owner and any heritable creditors and determine whether to approve or reject the application for a Right to Buy.
Scottish Ministers have 21 days from receipt of the ballot result to make their decision on whether the community body can proceed with exercising its right to buy.
Purchasing the land
If Scottish Ministers approve the Right to Buy, the date of entry and payment of the price must be within eight months from the date the community body confirmed its intention to exercise its right to buy.
An extension to the eight months is possible with the agreement of both the owner and the community body.
Contact
Email: crtb@gov.scot
Tel: 0300-244-9822
Post:
Community Land Team
Q Spur
Saughton House
Broomhouse Drive
Edinburgh
EH11 3XD
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