The right to buy land to further sustainable development: consultation

8. Compensation and Grants Towards Liabilities to Pay Compensation

Regulation Making Powers

Section 67(5)
Section 68(6)

Background and context

As with other right to buy legislation in Scotland, anyone who has incurred loss or expense as a result of one of the reasons listed under subsection 67(1) of the 2016 Act can seek compensation. This includes owners, previous owners, and tenants, but is not limited to them.

Compensation must be paid by the community body or third party purchaser depending on the circumstances, but Scottish Ministers may make grants towards paying the compensation in specified circumstances.

Section 67 of the Land Reform (Scotland) Act 2016 defines the circumstances where a person is entitled to compensation under Part 5 and section 68 defines the circumstances in which community bodies or a third party purchaser may apply for a grant to pay this compensation. Section 67 contains a power to specify the amounts payable, who is liable to pay those amounts and the procedure under which claims for compensation are to be made.

Section 68 contains a power to specify the form and procedure for applying for a grant toward compensation.

Our proposed regulations for grants and compensations are based processes that have been established under Part 2 and Part 3A.

Proposals for section 67(5)

This regulation-making power is similar to section 97T(4) of the Land Reform (Scotland) Act 2003, the power under which the Community Right to Buy (Abandoned, Neglected or Detrimental Land) (Compensation) Order 2018 is made. See following link for the 2018 compensation order: http://www.legislation.gov.uk/ssi/2018/137/contents/made

This order provides the procedure for claiming compensation under Part 3A. We propose that regulations for compensation under Part 5:

• ensure that the compensation request is submitted to the community body at their registered office;
• provide that, where the compensation request is refused by the community body, there is facility for the claimant to apply to Scottish Ministers for compensation;
• require that compensation claims for losses caused by complying with Part 5 where an application has been made, or as a result of withdrawal by the community body from the application process once begun, or its failure to complete the purchase, must be submitted within the period of 90 days of completion of transfer of the land or such later date where the consideration is paid; or within 90 days of Ministers receiving notice from the community body that it has withdrawn its application or has withdrawn its intention to proceed with the purchase of the land; or where the community body's application is to be treated as withdrawn because it has failed to pay the consideration; and

• require that a compensation claim made following the Scottish Ministers turning down a Part 5 application must be submitted within the period of 90 working days of Minister's decisions to refuse the Part 5 application.

Question 20

Do you agree with the Scottish Government's proposals, as outlined above, for regulations to govern compensation payments for activities relating to Part 5?

Yes / No / Partially

If you wish, please provide further details, including any suggestions you may have.

Proposals for section 68(6)

Similar provision is made by section 97U of the 2003 Act in relation to the Part 3A community right to buy land that is abandoned, neglected or detrimental. The procedure and form for applying for a grant towards payment of compensation is contained in regulation 19 and schedule 5 of the Community Right to Buy (Abandoned, Neglected and Detrimental Land) (Applications, Ballots and Miscellaneous Provisions) (Scotland) Regulations 2018. See following link for the 2018 regulations: http://www.legislation.gov.uk/ssi/2018/140/contents/made

We propose similar provisions and a similar form when applying for a grant towards payment of compensation under Part 5.

• The application must be in a form specified by Scottish Ministers and include information specified in that form. A draft form is provided at Annex D.

• We propose to require that such an application must be submitted to Ministers within 90 days beginning with the date on which the Part 5 community body and the claimant agree the amount of compensation payable; or the date on which the Lands Tribunal decides on a question which has been referred to them by one of the parties involved (the claimant or the Part 5 community body), as to whether compensation is payable or the amount payable.

Question 21

Do you agree with the Scottish Government's proposals, as outlined above, for regulations to govern grants towards compensation payments for activities relating to Part 5?

Yes / No / Partially

If you wish, please provide further details, including any suggestions you may have.

Question 22

Are you content that the draft grant application form is fit and suitable for purpose?

Yes / No / Partially

If you wish, please provide further details, including any suggestions for improvements to the form that you may have.