Notice of Potential Liability for Costs - Example Deeds

General

There are two types of a Notice of Potential Liability for Costs. The first is registrable in terms of section 13 of the Tenements (Scotland) Act 2004 for a flat in a tenement. The second is registrable under section 10A of the Title Conditions (Scotland) Act 2003 but this type of notice can be used in respect of a tenement flat as well as other styles of property.

The effect of registration of each type of notice is to make the incoming owner of a flat or a burdened property liable for certain maintenance or repairs costs, provided that the notice was registered at least 14 days prior to the date of their acquisition. An entry for a notice of potential liability for costs is made in the burdens section of the title sheet.

In order to be valid, the deed must closely resemble the statutory form provided and information must be supplied for each field of the notice. Only a limited group of people can effect a notice under these Acts and apply for registration. The applicant by signing the application form is certifying that they have the legal right to grant the deed. Registration may proceed provided that the application form does not indicate any information adverse to this general certification.

Useful links

Burdens Section Summary

Examples

Statutory form - Tenements (Scotland) Act 2004

NOTICE OF POTENTIAL LIABILITY FOR COSTS

This notice gives details of certain maintenance or work carried out or to be carried out in relation to the flat specified in the notice. The effect of the notice is that a person may, on becoming the owner of the flat, be liable by virtue of section 12(3) of the Tenements (Scotland) Act 2004 (asp 11) for any outstanding costs relating to the maintenance or work.

Flat to which notice relates (This must describe the flat in a way that it sufficient to identify it. Where the flat has a postal address, the description must include that address. Where the flat has been registered in the Land Register, the description must make reference to the title number of the flat or the larger subjects of which it forms part. Otherwise, the description should normally refer to and identify a deed recorded in the specified division of the Register of Sasines)

Description of the maintenance or work to which the notice relates (The maintenance of work is to be described in general terms)

Person giving notice (The name and address of the person applying for registration of the notice ("the applicant") or the applicant's name and the name and address of applicant's agent. )

Signature (The notice must be signed by or on behalf of the applicant)

Date of signing

Witness

x

Statutory form - Title Conditions (Scotland) Act 2003

NOTICE OF POTENTIAL LIABILITY FOR COSTS

This notice gives details of certain maintenance or work carried out in relation to the property specified in the notice. The effect of the notice is that a person may, on becoming the owner of the property, be liable by virtue of section 10(2A) of the Title Conditions (Scotland) Act 2003 (asp 9) for any outstanding costs relating to the maintenance or work.

Property to which the notice relates: [This must describe the property in a way that is sufficient to identify it. Where the property has a postal address, the description must include that address. Where title to the property has been registered in the Land Register, the description must refer to the title number of the property or of the larger subjects of which it forms part. Otherwise, the description should normally refer to and identify a deed recorded in a specified division of the Register of Sasines.]

Description of the maintenance or work to which notice relates: [the maintenance or work is to be described in general terms]

Person giving notice: [The name and address of the person applying for registration of the notice ("the applicant") or the applicant's name and the name and address of the applicant's agent.

Signature: [The notice must be signed by or on behalf of the applicant.]

Date of signing

Witness

Resulting burdens section entries

Tenements (Scotland) Act 2004

Notice of Potential Liability for Costs in terms of section 12 of the Tenements (Scotland) Act 2004 by James Iain Smith, of Ross & Liddell Ltd., Property Managers, Surveyors, Estate Agents, having their registered office at 60 St. Enoch Square, Glasgow, G1 4AW, as Property Managers/Factors of the tenement 120 Parklands Oval, Glasgow, in respect of costs relating to maintenance or work described therein as the outstanding charges relate to work instructed by Ross & Liddell, Property Managers and relate to general maintenance of building, repairs to doors, windows, chimneys, cleaning of windows, doors and common areas, gardening and landscaping, removal of debris and a range of miscellaneous issues, in respect of the subjects in this Title, dated 18 Feb. 2015, registered 26 Feb. 2015.

Title Conditions (Scotland) Act 2003

Notice of Potential Liability for Costs in terms of section 10 of the Title Conditions (Scotland) Act 2003 by James Iain Smith, of Ross & LIddell Limited, Property Managers, Surveyors, Estates Agents, having their registered office at 60 St Enoch Square, Glasgow, G1 4AW as Property Managers/ Factors of the tenement [ ] in respect of costs relating to maintenance or work described therein as [enter description of maintenance or work contained in the notice] in respect of [subjects*] dated [date of signing], registered [insert date of registration].