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Community Right to Buy (CRtB)

What is it for? It’s one of many tools to allow communities to purchase land. Provides an opportunity for communities throughout rural Scotland to register a community interest in land and land based assets under Part 2 of the Land Reform (Scotland) Act Provide those communities who successfully registered an interest with a pre-emptive right to buy the land when it’s offered for sale.

What it is not for Not a forced sale of land. Not a compulsory purchase. Should not be used as a means to block or blight development. Should not be used to block another interested party from purchasing land. A registration is not meant to preserve the ‘status quo’.

Eligible / registrable land Any rural land or rural land based assets (including foreshore, mineral or salmon fishing rights). Any landowner (Public or Private). Land can be adjacent to the community or within the community.

Application types Timeous: No steps have been taken to transfer the land. Late: Steps have been taken to transfer the land.

Who Can Use it? A community company Limited by Guarantee needs to be formed in order to register a Right to Buy. Area defined by the Community Body and made up of post-codes (units or sectors). This company should be for: 1.The benefit of the community, 2.Run by the community, 3.Registered with Companies House. 4.Be consistent with furthering sustainable development.

Registering a interest in land - general supporting docs (e.g. maps, community support, (for “Late” support, significantly greater than the 10% required for a timeous), constitution, ownership checks). Details on substantial connection with the land. Proposals for the land. Sustainable Development proposals. Public Interest. (strongly indicative for “Late’s”). Good reasons why the application was not submitted timeously - for a “Late” only. Information within an application includes

Registering a interest in land - general Application submitted to Community Land Team. Application issued to landowner (Temporary prohibition is placed on the landowner (This does not prevent e.g. development or leasing, only prevents a transfer for value)). Landowner has 21 days to provide any comments on the application. CB has 21 days to respond to any landowner’s comments, unless “Late”. Ministers have 63 days for timeous to intimate decision from receipt of a compliant application. Ministers have 30 days (rather than 63) for “Late” to intimate decision from receipt of a compliant application. CB and landowner have 28 days to appeal decision. A Compliant Application is ready

Registration and re-registration If the registration is approved by Ministers it lasts for 5 years from the date it was approved and can be re-registered on a 5 year rolling basis. Full prohibition is placed on the landowner (Does not prevent e.g. development or leasing, only prevents a transfer for value)). Registration will normally last until: a)the community withdraws it registration; b)completes the purchase of the land or c)fails to re-register.

Activation of a Right to Buy - general Landowner “triggers” RtB or if a ‘Late’ application the process jumps to Ministers appointing a valuer. CB intimates to Ministers that it wants to go ahead with its right to buy; Ministers appoint an independent valuer (valuation takes 6 weeks). Valuation is “market value”. Appeal of valuation within 21 days.

CB has 28 days from the valuation report being published to secure “majority” support through a ballot of its “community”. Ballot process and return must comply with Land Reform (Scotland) Act 2003 and CRtB Ballot (Scotland) Regulations Ballot must be fair, reasonable and private etc. Ensure independent assessor assistance. Activation of a Right to Buy - general

CB submits its RtB “application” to Ministers (Ballot return, supporting evidence (e.g. Feasibility Study/Business Plans) and Section 51(3) confirmation). Ministers decide whether to consent to the RtB. Appeals to Ministers decision lodged within 28 days, at sheriff court. Agree the price to be paid. Raise money to conclude purchase. Conclude missives within the 6 month period (or longer by negotiation).

The changes under (CE(S)A) 2015 All communities now eligible. SCIO’s and Bencoms can also apply. Other changes to section 34 requirements. Additional ways to “define” community (e.g. settlement, community council area). New forms. Removing ‘substantial’ connection with the land.

The changes under (CE(S)A) 2015 ‘good reasons’ removed for “late” applications, now reasons why work not undertaken to submit an application. Support and public interest requirements remain. 30 days to 44 days if other info requested by Ministers when dealing with Late. Valuation extended to 8 weeks to allow for cross representations and can be extended by the valuer on request to Ministers. Ministers appoint ballotter and pay for ballot. New section 51B form for communities to complete. Allow for Ministers to ask for additional information in relation to the RtB.

The changes under (CE(S)A) months to conclude missives. Allow creditors to appeal Ministers decisions (including valuation). Any changes to contact details for both parties they need to inform Scottish Ministers. Landowner may be liable for cost of valuation, if they withdraw, without good reasons. Changes commence 15 April 2016

Case Study 1 Mosset Park Protection Company Limited (MPPC) Owner – Moray Council. Application - Timeous. Registered interest – Mosset Park Football Ground. Impact - means the owner cannot negotiate to transfer land for value without giving MPPC opportunity to purchase. Land is common good land. Council wish to see site developed. (Registered interest doesn’t prevent this).

Case Study 2 Machrihanish Airbase Community Company (MACC) Owner – MoD. Application - Late Registered interest – Machrihanish Airbase Impact - means that owner could not negotiate to transfer land for value without giving MACC opportunity to purchase. MoD had to suspend marketing of site. Valuation of £1. Liabilities. Extended timescales due to complexities, agreed extension to purchase date with community purchasing 14 April 2012.

Case Study 3 Culbokie Community Trust Limited (CCTL) Owner – Private Individuals Application - Late Registered interest – 0.50 ha of rough pasture Impact - means that owner cannot negotiate to transfer land for value without giving CCTL opportunity to purchase. Owners had to suspend marketing of site. Community proposals for site were similar to local plan proposals for site. Agreed extension to purchase date with community purchasing 27 May 2015.

Case Study 4 The Dornoch Area Community Interest Company (DACIC) Owner – Scottish Courts Service Application - Timeous. Registered interest – Sheriff Court building Impact - meant that owner could not negotiate to transfer land for value without giving DACIC opportunity to purchase. Owner “triggered” Right to Buy. DACIC failed to complete the purchase (withdrew). Owner held onto asset longer than they wished. Third party purchased in longer term. Owner developed a disposal plan.

Useful web links Or contact us at Right to Buy - land/right-to-buy Register of Community Interests in Land - Mapping Tool - land/right-to-buy/MappingTool Register of Scotland - By Post to Community Land Team D Spur, Saughton House Broomhouse Drive Edinburgh EH11 3XD By phone Helpdesk: By