What is a Notice of Potential Liability?

It is important that all homeowners contribute their share of common works. Unfortunately, on occasion owners do not pay their share, which results in debt within the development, which may require to be spread to remaining homeowners.

R+L will keep homeowners informed of any debt within your development. You will note from our letters when communicating debt, that we usually obtain a Notice of Potential Liability. This is a Notice, recorded against the Property’s Title, which flags unpaid charges due by that property owner. In the event of a property sale, the purchaser will be made aware of this notice, via their solicitors, and the balance due, as they will become liable for these costs when the sale completes. This usually results in settlement of sums due, prior to the sale completing as purchasers will encourage settlement and discharge of the Notice, prior to concluding.

This Notice helps ensure that the balance is paid when the property sells. Any homeowners who were required to fund the missing shares will be reimbursed once these costs are recovered.

As Factor we will aim to register the Notice on homeowners’ behalf. The cost of registration via Registers of Scotland is £80 (plus solicitors fees) per property Title. The Notice is valid for 3 years (it can be renewed before expiry)