Factor issue

[Equivalent]

Ok, older factors pulled out my development in September 2021 - as usual with factors they were useless, a complete waste of money, done as little as they could and done everything to maximize their profit.

Anyways, got a letter from them today to say that the owners that paid their dues over the years are getting another £200 or so bill so they can recover their losses on the properties/owners that didn't pay over the years - the outstanding debt is about 45k.

They say they can do this due to it being in the title deeds where they have effectively "spread" the debt.

I've not checked the deeds yet, but is it even legal what they're doing?

They have even put in the letter that they will take out some sort of caveat (decree?) against the none payers' properties so when (if) they sell their flat they will claim the outstanding amount back from the sale, then, in turn, refund the 200£ to me. - this could take years due to waiting for someone to sell their flat.

I'm not sure how this type of caveat works, but could they not just sell their property to their spouse for £1 and then for the spouse to sell it for a "real" amount? if so, that means the factor will still not get their money, which in turns, means I will be down by £200, right?

The factor actually replied to my email and advised "At this point we try attach this decree to assets however when the debt against someone’s home and they have no other assets, there is nothing further we can do, and the debt continues to build."

They have also advised that they can "spread" the debt due to "The deeds of conditions allow it and if it is not in there it’s the tenements Scotland 2004"

I've had a quick read of the "Tenements Scotland 2004" and couldnt see anything about the spreading of the debt, if its in their, can someone please point it out to me?

[Helena1]

The Factor has to abide by the law set out in the Factors Scotland Act 2011 code of conduct. Section 4 deals with debt recovery and states:

'4.1 Non-payment by some homeowners may affect provision of services to others, or may result in other homeowners in the group being liable to meet the non-paying homeowner’s debts in relation to the factoring arrangements in place (if they are jointly liable for such costs). For this reason it is important that homeowners are made aware of the implications of late payment and property factors have clear procedures to deal promptly with this type of situation and to take remedial action as soon as possible to prevent non-payment from escalating.'

It would be worth contacting the Citizens advice bureau and Shelter for advice as the factor should have taken steps to pursue the non paying homeowners at the time and might have breached the code by allowing it to build so high. I'm not an expert though but please Google the Act to see section 4.

Good luck