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Register of Community Interests in Land

Search the RCIL (external link)

Register of Community Interests in Land (RoS external website)

Register of Community Interests in Land (2012 Act Manual)

Agricultural Holdings (Scotland) Act 2003 (external link)

Introduction

What is the Register of Community Interests in Land (RCIL)?

The RCIL was established by the Land Reform (Scotland) Act 2003 and consists of two separate and distinct parts:

RCIL - Community Bodies

The Community Bodies' part of the RCIL is governed by the Land Reform (Scotland) Act 2003. Part 2 of said Act provides opportunities for rural community bodies to register a community interest in land and to buy that land for the benefit of the local community when it becomes available to purchase.

The community body must send its application to register its right to buy to the Scottish Ministers via the Scottish Government Community Land Team. While the Keeper maintains this part of the register, entries onto it are controlled by Scottish Ministers.

RCIL - Agricultural Tenants

Part 2 of the Agricultural Holdings (Scotland) Act 2003 governs the Agricultural Tenants’ part of the RCIL and permits agricultural tenants to register a Notice of Interest over the agricultural land they lease in anticipation of purchasing said land once it becomes available. Only those tenants holding an agricultural tenancy in terms of the Agricultural Holdings (Scotland) Act 1991 are eligible for noting their interest in the RCIL (those with short limited duration tenancies, limited duration tenancies and grazing or mowing leases do not qualify).

In contrast to the Community Bodies part of the RCIL, agricultural tenants may submit an application to register a Notice of Interest directly to the Keeper. The Keeper has a statutory duty to investigate any subsequent challenge (on grounds ranging from inaccuracy in the RCIL to there being no 1991 Act tenancy) made by a landowner, in so far as she is able. Where either party wishes to appeal a decision made by the Keeper or, indeed, where she is unable to make a decision based upon the evidence submitted in support of and in response to a challenge, the parties may look to the Land Court for a decision. The Keeper will reflect any subsequent decision in the RCIL.

Registration

What is a Notice of Interest?

A Notice of Interest is the mechanism by which a tenant notes his interest in acquiring a pre-emptive right to buy the land comprised in his lease.

How does a tenant register a Notice of Interest in the RCIL?

The Notice of Interest takes the form of an application form which the applicant (tenant) must submit to the Keeper for registration in the RCIL.

Please note that in order for an Notice of Interest to be valid, a tenant is under a statutory duty to send a copy of the Notice of Interest (along with copies of any accompanying plans) to the owner of the land and notify the Keeper (on the application form) that this duty has been complied with. _{(section 25(4) of the Agricultural Holdings (Scotland) Act 2003)}

Where can an application form to register a Notice of Interest be obtained?

An application form can be obtained from Registers of Scotland.

Can an application be submitted electronically?

No, the Keeper requires a paper application form to be submitted. It is also necessary to submit paper plans in support of the application for registration.

Is a registration fee charged?

Yes. See section 25(7) of the Agricultural Holdings (Scotland) Act 2003. The fees charged for services in respect of the RCIL are as follows:

Initial registration of an Notice of Interest - £40
Any subsequent re-registration of a Notice of Interest - £25
Plain copy extract - £16
Extract copy - £30
Search of the RCIL - £30 plus VAT (please note - the RCIL may be searched online for free)

Requests for copies and searches should be directed to RoS Customer Services.

Who can register a Notice of Interest in the RCIL?

Only a tenant who has a secure agricultural tenancy in terms of the Agricultural Holdings (Scotland) Act 1991 may apply to register a Notice of Interest in the RCIL.

An exception to this rule is the special case of limited partnerships. The Agricultural Holdings (Scotland) Act provides that, in the case of limited partnerships where the landowner is the limited partner and the farmer is the general partner, the general partner may register a Notice of Interest as if he was the tenant. In such an instance, the general partner should enter his details as the applicant. Where the lease has been granted to a limited company or firm (other than a limited partnership), the name of the company is the applicant and the application should be made by, or on behalf of, the company or partnership.

What is the effect of registration?

Registration in the RCIL confers a pre-emptive right to buy on the tenant. While an entry in the RCIL remains current, the landowner must give notice to the tenant when he decides to transfer the land. The tenant is then entitled to exercise his right to buy at a price agreed by both parties or as otherwise determined in terms of the Act.

Can a tenant exercise their right to buy as soon as the Notice of Interest has been registered?

No. Registration of a Notice of Interest does not mean that a tenant may activate their right to buy immediately. The right to buy only takes effect when the landowner decides to sell.

How will a tenant know if the landowner has decided to sell the leased land?

Where a landowner, or creditor in a standard security with a right to sell, proposes to transfer the land or any part of it, he must give notice to the tenant. This notice, known as a Notice of Proposal to Transfer Land, should take the form prescribed by the Scottish Minsters.

The prescribed form can be found at Schedule 2 to SSI 2004 No. 497. A copy of this notice must be sent to the Keeper in order that she may publicise its existence by adding it to the RCIL. _{(section 26(1)(b) of the Agricultural Holdings (Scotland) Act 2003)}

How does a tenant exercise their pre-emptive right to buy?

Upon receipt of a Notice of Proposal to Transfer Land from the landowner, the tenant will have 28 days within which to seek legal advice about the notice and notify the landowner of their intentions in respect of the offer. As a courtesy, the tenant may wish to supply the Keeper with a copy of their decision in order that she may update the RCIL accordingly, although there is no statutory requirement to do so.

Are there exceptions to when the right to buy can be exercised?

A landowner is not obliged to give a tenant notice of a proposed transfer in the following circumstances: _{(section 27 of the Agricultural Holdings (Scotland) Act 2003)}

Where the transfer is not for value
Where the transfer is in implement of the pursuance of a court order (other than an order under section 24 of the Conveyancing and Feudal Reform (Scotland) Act 1970 or a decree in an action for the division and sale of land)
Where the transfer is between spouses in pursuance of an arrangement between them entered into at any time after they have ceased living together
Where the transfer is of croft land to the crofter tenanting said land
Where the transfer is between companies in the same group
Where the transfer is to a statutory undertaker for the purpose of carrying on the undertaking
Where the transfer is:

- implementing the compulsory acquisition of land under any enactment

- by agreement, of land which could have been acquired compulsorily under any enactment

- implementing any right to buy land conferred by Part 2 of the Land Reform (Scotland) Act 2003 (which provides for the community right to buy)

- implementing any right to buy eligible land conferred by Part 3 of Land Reform (Scotland) Act 2003 (which provides for the crofting community right to buy)

- implementing missives for the sale and purchase of land concluded or an option to acquire land which existed on a date on which no Notice of Interest was registered

- conveying a house to a person who has purchased it in pursuance of the tenant's right to buy it under Part III of the Housing (Scotland) Act 1987

- one which requires, or but for the provisions of section 14 of the Housing (Scotland) Act 1987 would require, the consent of the Scottish Ministers under subsection (5) or (7) of section 12 thereof

- by a registered social landlord in pursuance of power conferred by section 107 of that Act

- vesting the land in a person for the purposes of any enactment relating to sequestration, bankruptcy, winding up or incapacity or the purposes for which judicial factors may be appointed

A transfer of land in consequence of:

- the assumption or resignation or death of one or more of the partners in a partnership, or,

- the assumption or resignation or death of one or more of the trustees of a trust

In the case of a transfer otherwise than for value, between companies in the same group, upon the assumption or resignation or death of one or more partners in a partnership or trustees in a trust, if the transfer is:

- or forms part of a scheme or arrangement or is one of a series or transfers, and

- the main purpose or effect, or one of the main purposes or effects, of the scheme, arrangement or series is the avoidance of the requirements or consequences of this Part, the transfer is, deemed to be a transfer in respect of which notice is required to be given to the tenant

Does registration in the RCIL guarantee the tenant's right to buy?

No - the tenants' right to buy will be extinguished in the following circumstances:

Where it has been successfully challenged by the landowner and rescinded from the RCIL
Where the entry has not been renewed after expiry (but will re-activate upon re-registration)
Where the entry is superseded by the terms of section 27 of the Agricultural Holdings (Scotland) Act 2003
Where a tenancy has been otherwise terminated
Where a tenant chooses not to give notice of his intention buy the land or else he gives notice that he does not intend to buy the land _{(section 29(5) of the Agricultural Holdings (Scotland) Act 2003)}

What happens if the landowner disregards the Notice of Interest and sells the land without allowing the tenant to exercise the right to buy?

The existence of a tenant's right to buy in such an instance will not invalidate the sale to the new proprietor, however, the legislation allows for the tenant to buy the land from the new proprietor. _{(section 28(2) of the Agricultural Holdings (Scotland) Act 2003)}

Does registration in the RCIL guarantee the accuracy of the information supplied to the Keeper?

No. Registration does not validate or guarantee that the details provided in the Notice of Interest are correct. Accordingly the Keeper is not liable for any erroneous information reflected in the RCIL. Section 25(11) of the Agricultural Holdings (Scotland) Act 2003 permits the landowner to challenge the registration where he disputes any matter contained within the Extract.

How will the tenant know that the Notice of Interest has been registered successfully?

Upon registration, the Keeper will issue all parties with an Extract of Registration which reflects the details of the Notice of Interest in the RCIL. This information will also appear on the RCIL and may be viewed freely and publically.

What information will appear in the RCIL?

An entry in the RCIL will include the:

information provided by a tenant in a Notice of Interest _{(section 25(5)(a)(ii) of the Agricultural Holdings (Scotland) Act 2003)}
registration number
date of registration _{(section 25(5)(a)(iii) of the Agricultural Holdings (Scotland) Act 2003)}
date of expiry
status of the entry
lands, farms or estate name
names of applicant(s), tenant(s) and landowner(s)
description of the subjects
Notice of Interest
plans accompanying the Notice of Interest
reference to any interests or rights comprised in the land (including any sporting or mineral rights) _{(section 25(3)(d) of the Agricultural Holdings (Scotland) Act 2003)}

In addition, the Keeper is under a statutory duty to include any notice or notification sent to her under the provision of Part 2 of the Agricultural Holdings (Scotland) Act 2003 - this includes correspondence sent in respect of a challenge. _{(section 24(3)(a) of the Agricultural Holdings (Scotland) Act 2003)}

Can a Notice of Interest be registered against all types of lease?

No. The following types of lease are not eligible for registration in the RCIL:

Grazing let
Short duration tenancy - unless said lease was entered into in writing prior to the commencement of the 2003 Act and expressly states that the 1991 Act is to apply in relation thereto
Limited duration tenancy - unless said lease was entered into in writing prior to the commencement of the 2003 Act and expressly states that the 1991 Act is to apply in relation thereto
Sub-tenancy _{(section 25(2)(b) of the Agricultural Holdings (Scotland) Act 2003)} - this includes where a lease has been converted to a sub-lease by the granting of an interposed lease in terms of section 17 of the Land Tenure Reform (Scotland) Act 1974

What is the registration number?

Upon registration, the tenant acquires a registration number beginning with the letters 'AT' followed by a unique number, e.g. 'AT98765'. This number should be quoted in any correspondence with the Keeper.

How long does the registration process take?

Providing that all is in order with the application, the Keeper aims to register an application within seven working days of receipt.

Challenges

What is a "challenge"?

Upon registration of a Notice of Interest, a landowner may challenge the accuracy of any matter contained in the Extract of Registration on the grounds that it is inaccurate. _{(section 25(8) of the Agricultural Holdings (Scotland) Act 2003)}

Who can challenge a Notice of Interest?

Only the landowner can challenge a Notice of Interest. _{(section 25(8) of the Agricultural Holdings (Scotland) Act 2003)}

How does a landowner challenge an entry in the RCIL?

A challenge must take the form of a formal, written challenge to the Keeper once a Notice of Interest has been registered in the RCIL. _{(section 25(8) of the Agricultural Holdings (Scotland) Act 2003)}

What are the grounds for challenge?

A landowner may challenge a Notice of Interest on the basis that it contains an inaccuracy. Examples of such an inaccuracy are various and may stem from an error in the extent of the land described to a claim that the tenant does not possess a secure agricultural tenancy in terms of the Agricultural Holdings (Scotland) Act 1991.

How long does the challenge process take?

There is not statutory period within which the Keeper must make a determination as to whether or not a material inaccuracy exists within the RCIL. She aims to issue notice of her determination as soon as the circumstances of each individual case permits.

Upon receipt of a challenge, the Keeper will contact the tenant and request that a response be supplied, along with any and all relevant information, within a four week period after which she hopes to be in a position to arrive at a timeous decision in respect of the challenge.

However, in order to do so she must rely upon the co-operation of the parties involved to provide her with timely responses to her correspondence and any requests for further information. In addition, the complexity of the issues raised during the course of a challenge may also impact upon the length of time it takes for a decision to be made.

Accordingly, it is not possible to provide a definitive timeframe in respect of the challenge process as each challenge will be judged on its own merits.

What happens if the challenge is successful?

There are two possible conclusions to a successful challenge. _{(section 25(9) of the Agricultural Holdings (Scotland) Act 2003)} If the Keeper determines, after careful consideration of the evidence supplied by all relevant parties, that the information contained in the Notice of Interest is:

not material - she may amend that entry, or
material - she may rescind the entry from the RCIL

The Keeper will notify all parties of her decision to rescind. Alternatively, an updated Extract of Registration will be sent to all parties to reflect any amendment to the entry in the RCIL._{(section 25(10) of the Agricultural Holdings (Scotland) Act 2003)}

Can the Keeper's decision be subsequently challenged?

Yes. Once the Keeper has advised all parties of her decision any party may raise an action against said decision. The appropriate forum in which to challenge the Keeper's decision is the Land Court. _{(section 25(11) of the Agricultural Holdings (Scotland) Act 2003)} In the event that the Land Court overturns the Keeper's decision, the successful party must provide the Keeper with a copy of the Court's Order before she will update the RCIL to reflect the decision.

General

What happens if the tenant does not give notice of the Notice of Interest to the landowner?

A tenant must give prior notice of registration of a Notice of Interest to a landowner. _{(section 25(4) of the Agricultural Holdings (Scotland) Act 2003)} Failure to comply with the statutory duty to supply a copy of the Notice of Interest to the landowner will result in the Keeper rescinding the entry from the RCIL.

How long does an entry in the RCIL remain effective?

An entry in the RCIL remains effective for five years from the date of registration.

Can a tenant register a single Notice of Interest against more than one lease?

No. A Notice of Interest may only contain the land in a single lease. Should a Notice of Interest be found to include land in multiple leases the Keeper will consider that a material inaccuracy exists and, upon receipt of a challenge, may rescind the entry in the RCIL.

How the Keeper be notified of a change which affects the Notice of Interest?

Ordinarily the onus is on the landowner to advise the Keeper, in writing, of any change to the entry. Depending on the circumstances it may be the case that before she updates the RCIL to reflect any change, the Keeper will require written confirmation of the change from both the landlord and the tenant.

Re-registration

Does the tenant have to re-register immediately upon expiry of the five year period?

No. The tenant may re-register their Notice of Interest at any point during or after the expiry of the five year period, with or without modifications to the information included in the original Notice of Interest. _{(section 25(14) of the Agricultural Holdings (Scotland) Act 2003)} Re-registration of the original Notice of Interest is only permissible where the same lease continues - should a new lease be in force the tenant will have to submit a fresh application for registration along with a fee of £40.

It should be noted that, if the Notice of Interest is not renewed at the expiry of its five year term, then the pre-emptive right to buy will not strike at any sale in the intervening period. The subsequent five year period will begin from the date of re-registration.

If the tenant does not re-register the Notice of Interest immediately does the right to buy fall?

Yes. In the event that the tenant does not re-register the Notice of Interest, their pre-emptive right to buy will not strike at any sale in the intervening period between expiry and re-registration. The new five year period of validity will commence from the date of re-registration. _{(section 25(14) of the Agricultural Holdings (Scotland) Act 2003)}

What happens if there is a material change to the tenant, landlord or the lease itself?

Re-registration is only possible where the same lease remains in force. Where a new lease has been entered into since the previous application was registered, a new application should be made in respect of the land comprised in the new lease. A £40 fee will be payable.

Rights and Duties

What are a tenant's statutory rights?

A tenant has the right to:

register a Notice of Interest in the RCIL where he holds a secure agricultural tenancy in terms of the Agricultural Holdings (Scotland) Act 1991 _{(section 25(1) of the Agricultural Holdings (Scotland) Act 2003)}
make an appeal to the Land Court against any decision made by the Keeper in respect of a challenge made by a landowner _{(section 25(11) of the Agricultural Holdings (Scotland) Act 2003)}
re-register a Notice of Interest at any time (with or without modification to the matters specified in the Notice of Interest) _{(section 25(14) of the Agricultural Holdings (Scotland) Act 2003)}

What is a tenant bound to do?

The statutory duties imposed upon a tenant require that he must:

send a copy of the Notice of Interest to the landowner _{(section 25(4) of the Agricultural Holdings (Scotland) Act 2003)}
advise the Keeper that a copy of the Notice of Interest has been sent to the landowner _{(section 25(4) of the Agricultural Holdings (Scotland) Act 2003)}

What are a landowner's statutory rights?

A landowner may:

where he disputes any matter contained in an Extract of Registration, formally challenge a tenant's Notice of Interest on the grounds that the Extract is inaccurate _{(section 25(8) of the Agricultural Holdings (Scotland) Act 2003)}
appeal to the Land Court against any decision made by the Keeper in respect of a challenge _{(section 25(11) of the Agricultural Holdings (Scotland) Act 2003)}

What is a landowner bound to do?

The statutory duties imposed upon a landowner require that:

where there is a standard security over the land in question, the landowner must, upon receipt of an Extract of Registration, alert the tenant to its existence _{(section 25(6)(a) of the Agricultural Holdings (Scotland) Act 2003)}
the landowner must send a copy of the Extract of Registration to the creditor in a standard security _{(section 25(6)(b) of the Agricultural Holdings (Scotland) Act 2003)}
the landowner must give written notice to the Keeper where a tenancy is terminated during the five year registration period of any Notice of Interest _{(section 25(13)(a) of the Agricultural Holdings (Scotland) Act 2003)}
the landowner must give written notice to the Keeper where there is a reduction in the extent of the land comprised in a tenancy _{(section 25(13)(b) of the Agricultural Holdings (Scotland) Act 2003)}

What are the Keeper's statutory rights?

The Keeper is entitled to:

charge a reasonable fee for registering a tenant's interest in the RCIL and also for supplying any extracts, and copy Extracts of Registration _{(section 25(7) of the Agricultural Holdings (Scotland) Act 2003)}

What is the Keeper bound to do?

The Keeper has a statutory duty to:

maintain the RCIL for the purpose of registering tenants' interests in acquiring land _{(section 24(2) of the Agricultural Holdings (Scotland) Act 2003)}
register a tenant's Notice of Interest in the RCIL including the details specified therein along with a date of registration _{(section 25(5)(a) of the Agricultural Holdings (Scotland) Act 2003)}
send an Extract of Registration to the tenant _{(section 25(5)(b) of the Agricultural Holdings (Scotland) Act 2003)}
send an Extract of Registration to the landowner _{(section 25(5)(b) of the Agricultural Holdings (Scotland) Act 2003)}
include any correspondence sent to her in respect of an entry in the RCIL _{(section 24(3)(a) of the Agricultural Holdings (Scotland) Act 2003)}
investigate any challenge made by a landowner in respect of a tenant's Notice of Interest _{(section 25(9) of the Agricultural Holdings (Scotland) Act 2003)}
rescind the tenant's entry from the RCIL where she determines that it contains a material inaccuracy _{(section 25(9)(a) of the Agricultural Holdings (Scotland) Act 2003)}
advise a tenant when an entry is being rescinded from the RCIL _{(section 25(10)(a) of the Agricultural Holdings (Scotland) Act 2003)}
advise a landowner when an entry is being rescinded from the RCIL _{(section 25(10)(a) of the Agricultural Holdings (Scotland) Act 2003)}
send a fresh Extract of Registration to a tenant where an entry is amended _{(section 25(10)(b) of the Agricultural Holdings (Scotland) Act 2003)}
send a fresh Extract of Registration to a landowner where an entry is amended _{(section 25(10)(b) of the Agricultural Holdings (Scotland) Act 2003)}
amend a tenant's entry where she determines that any inaccuracy is not material _{(section 25(9)(b) of the Agricultural Holdings (Scotland) Act 2003)}
remove from the RCIL any entry which no longer has effect _{(section 25(15) of the Agricultural Holdings (Scotland) Act 2003)}
update the status of an entry, specifying the date upon which it has been removed _{(section 24(3)(b) of the Agricultural Holdings (Scotland) Act 2003)}

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