Switching property factor in Scotland generally involves reviewing the current agreement, gathering agreement from a majority of owners, and formally notifying the existing factor before a new one takes over, a process that typically takes a few weeks to a couple of months.
Persistent issues such as poor communication, unexplained charges or a lack of site presence are the most common reasons owners consider making a change.
Taylor & Martin guides owners through this process from initial site assessment through to handover, working within the requirements of the Tenements (Scotland) Act.
Why Reviewing the Existing Agreement Comes First
Before starting the process of switching factors, owners need to review their title deeds and the terms of the existing management agreement, since these documents set out notice periods and any specific conditions attached to ending the arrangement.
Some agreements include a fixed notice period that must be honoured regardless of how dissatisfied owners are with the current service, while others allow for a more straightforward exit. Understanding these terms early prevents a change process from stalling partway through due to a missed contractual requirement.
This review stage is also a useful point to gather written evidence of ongoing issues, such as unanswered communications or unexplained charges, which can support the case for change among other owners.
Getting Majority Agreement From Other Owners
Changing factors in a multi-unit property is not a decision one owner can make alone, since it requires agreement from a majority of owners in the building or development.
This usually means raising the issue with neighbouring owners directly, discussing specific concerns such as poor communication or a lack of site presence, and building enough support to proceed. Some owners may be satisfied with the current factor even if others are not, so clear communication about the reasons for change tends to make this stage go more smoothly.
Once enough support is gathered, a formal vote is usually held to confirm the decision before moving forward.
What the Tenements (Scotland) Act Requires
The Tenements (Scotland) Act sets out the legal framework that governs how decisions are made in multi-unit residential buildings across Scotland, including decisions about changing the property factor.
This legislation generally requires a majority vote among owners before a factor can be changed, rather than allowing a single owner or a small group to make the decision unilaterally. Understanding these requirements before attempting a change helps ensure the process holds up if it is ever challenged or questioned by the outgoing factor.
Taylor & Martin works within these legal requirements when supporting owners through a factor change, ensuring the process is conducted correctly from the outset.
Formally Notifying the Current Factor
Once majority agreement has been reached, the current factor must be formally notified of the decision to end the arrangement, usually through a written letter that references the relevant notice period.
Using a clear, properly worded letter template helps ensure the notification meets any formal requirements set out in the existing agreement or under Scottish legislation. This formal notice is what starts the countdown toward the handover date, so timing this step correctly is important for keeping the overall process on schedule.
Keeping a copy of this notice, along with proof it was received, protects owners if any dispute arises later about whether proper notice was given.
What Happens If a Factor Refuses to Cooperate
In most cases, a current factor accepts the notice and cooperates with a smooth handover, but there are situations where a factor refuses to cooperate or disputes whether proper procedure was followed.
In these more difficult cases, owners in Scotland have the option to involve the First Tier Tribunal, which can intervene to resolve disputes between owners and factors. This route is generally used only when other attempts to resolve the disagreement directly have not worked, since it adds time and formality to what is otherwise a fairly straightforward process.
Knowing this option exists gives owners some reassurance that an uncooperative factor cannot indefinitely block a legitimate change.
Managing the Handover Between Factors
The handover between factors involves transferring documents, financial records and any ongoing maintenance arrangements from the outgoing factor to the incoming one, which needs to be coordinated carefully to avoid gaps in service. This is also the stage where the new factor typically introduces themselves to owners, confirms how ongoing charges and communication will work, and begins any site assessments needed to plan future maintenance.
A well-managed handover should feel seamless to residents, with no interruption to essential services such as cleaning, repairs or communal area maintenance during the transition. Choosing a new factor that has clear processes for managing this handover stage tends to make the whole change feel less disruptive.
Approaching a Factor Change With Confidence
Switching property factor can feel like a daunting process, but breaking it down into reviewing the existing agreement, gathering owner agreement, and following the correct legal steps makes it considerably more manageable.
Taylor & Martin supports owners through every stage of this process, from initial assessment through to a smooth handover, working within the framework set out by the Tenements (Scotland) Act.
