Community Right to Buy
This is a short description of the process that a community has to undertake to acquire land under this scheme. Initial considerations The Legislation
The Land Reform (Scotland) Act 2003 allows a community to register and have recorded an interest in a piece of land, and have the first option of buying the land when it comes up for sale. It guarantees that the community pays a fair price for the land that will be no more than the market value. How long does the community have to raise the money to purchase the land?
A period of six months is allowed for the community to raise the funds and complete the land purchase.
Is this the only way to acquire the land?
No, even if a community registers a Right to Buy interest, they can still negotiate a sale with the land owner. How many pieces of land can a community register interest in?
The community can register interest in any number of properties, but a separate application is needed for land held by a different owner. Who can register interest in land?
The applicant has to be a community body set up for this purpose. It must be a company limited by guarantee with no fewer than 20 members, with the majority of members coming from the local community. Agencies supporting the community can be members. Working towards registering an interest
A good case for registration. The community must have a good case for registering interest in the land. The site must be identified as meeting community need/requirements. Need to demonstrate that the registration is in the public interest, that the purchase of the land will further the achievement of sustainable development i.e. will provide economic or social benefit for the community and be environmentally friendly i.e. deliver benefits to the community. This usually requires a long –term plan that demonstrate an integrated long- term approach to economic, social and environmental issues. It must be demonstrated that the proposed acquisition would bring real benefits to the whole of the local community and not just some or all of the individual members of the community body. The community body must define the community which it serves. This is done using post code units. Ownership of site
Must establish who owns the site. Should the Land Registry investigations prove unsuccessful, then an advertisement must be placed in the local newspaper for two consecutive weeks and a conspicuous notice should be placed on the site advising of intention to register an interest in acquiring the said site. Planning permission etc. If the development planned for the site requires planning approval or other formal consents it should, at this stage, be assessed if such permissions will be forthcoming. Local support
Need to demonstrate local support, 10% of population should be sufficient. Membership of the community body and signatures in support of the proposal are acceptable. The application Need to complete application form.
Provide map showing the location and boundaries of the land to be registered. A project description of how the land is to be developed is not a formal requirement at this stage, but it could help Ministers decide if the proposal is in the public interest and is sustainable. The land owner’s involvement.
All this information is sent to the land owner and other interested parties to enable them to comment on the application. From this time on the land owner is unable to sell or transfer the land. Time frame
A decision should be reached by the Ministers just over two months after submission of the application. Successful registration
If the community is successful in its application then it has the first right of refusal on the land, but it does not mean the community is obligated buy the land. The registration of interest lasts for five years. This can be renewed for a further five years within the six month period before its expiry. A successful application however, does not guarantee that planning permission will necessarily be granted. Purchasing the land Time Frame
When to owner decides to sell (they are under no obligation to do so) they must notify the community body and the Ministers of their intention to do so. The community body is then contacted by ministers asking for confirmation of whether they wish to pursue a purchase of the land. The community body has 30 days to respond. Failure to do so within this time will result in the community’s right to buy being deleted. The date on which the community body responds that it does wish to proceed with a purchase is the beginning of the 6 month period that the community body has to complete the purchase. This period can be extended by mutual agreement between the land owner and community body, or if any appeals procedure is initiated. Four Key Elements
Independent Valuation
Qualified valuer appointed by Scottish Executive will assess the market value; this is the figure the community body must pay. Community Ballot
A ballot must be undertaken to demonstrate community support of purchase. The ballot must allow for the opportunity of a secret ballot. Must insure that all those entitled to vote have the opportunity to do so. It is expected that at least 50% of the community should take part in the ballot and that the majority must be in favour of the purchase. These results must be published in a local newspaper and reported back to the Ministers. Case for Community Purchase
The community body must develop a business case for the community purchase that shows the contribution that will be made towards sustainable development and that public interests are satisfied. Raising Funds for the Purchase
All funds needed must be in place by the end of the 6 months. What happens if the community wish to sell off the land in the future?
The community body must get approval from the Ministers to sell the land. The land will be expected to pass to another community body or charity. Any funding bodies that have contributed to the purchase are likely to have provisions to cover this situation.
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