Tenement Management Scheme
Who is it for?
This advice is for all owner occupiers and owner landlords of tenement buildings.
Some Title Deeds do not specify the apportionment of shares for certain works. In 2003, the Tenements (Scotland) Act 2004 was passed by the Scottish Parliament to clarify rules regarding tenement management specifically to assist owners find a legal means of ensuring agreement between owners of a tenement.
Where the Deeds are silent or there is dispute over apportionment, a system known as the Tenement Management Scheme (TMS) can be applied. It will not replace the Title Deeds but will fill any gaps or address any matters where the Deeds do not provide a written legal solution to a problem or dispute between owners
TMS can set out:
- What "scheme property" consists of
- The procedure for voting
- What owners can decide
- How costs are to be apportioned
- What the term "maintenance" means especially where there have been substantial alterations or upgrades to parts of the building
- The process for appointing a property manager or factor
- Contingency arrangements for dealing with an emergency where a majority of owners are not present at the time of the event.
Where title deeds are silent and one or more owner wishes to make use of the TMS to resolve and issue or issues, any owner or group of owners can propose to the other owners the formation of a Tenement Management Scheme for the whole property.
Decisions are taken by majority vote and are binding.
It is recommended that an owners association is formed with a constitution and basic rules to encourage common repairs and maintenance to be carried out.
Alternatively, owners may agree by majority to appoint a property factor to organise the scheme and carry out consultation with owners, which may include organising votes from time to time. Property factors will charge a fee for administering the scheme.
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