The Crofting Reform (Scotland) Act 2010 – Changes Coming into Force in 2011

The Crofting Reform (Scotland) Bill was passed by the Scottish Parliament in 2010. The main features of the Act are:-

• Reorganisation of the Crofters Commission;
• Establishment of a new Crofting Register;
• Changes relating to the duties of Crofters and Owner Occupiers; and
• Amendments to the Crofters (Scotland) Act 1993.

The Act is not yet fully in force; however Landlords and Tenants should be aware of the following major changes, which will come into force in July 2011:-

Nominee Procedure

It will no longer be possible for crofters to take title to their crofts, or parts thereof (e.g. house sites) in the names of unrelated third parties. A purchasing crofter will only be able to nominate a member of his family to take title. This provision will not affect applications made to the Scottish Land Court prior to 1 July 2011. If you are a crofter currently negotiating with your landlord in relation to a purchase, then you may wish to consider making an application to the Scottish Land Court prior to 1 July 2011.

Landlord’s Clawback

The clawback period during which landlords who have sold croft land may share in any increase in value will be extended from 5 years to 10 years with effect from 1 July 2011. This will not affect orders of the Scottish Land Court made before 1 July 2011. Where an application has been made prior to 1 July, but no decision has been made by the Court by that date, then the extended 10 year period will apply.

Between now and 1 July the strict legal position is that the 5 year clawback will still apply, but in reality, crofters seeking to purchase at this time will have to negotiate the clawback period with their landlord. A number of landlords are insisting on the 10 year clawback now, on the basis that there may not be enough time to obtain a final order from the Land Court between now and 1 July.

For further information relating to the Nominee procedure or Landlord’s Clawback please contact Gail Jamieson or David Findlay.

For a more detailed analysis of the provisions of the new Act and how these may affect you, please see our Client Briefing “The Crofting Reform (Scotland) Act 2010 – A Guide for Landlords and Tenants.”

Disclaimer: The information in this publication is based on our current understanding of the law. It has been produced for information purposes only. Professional advice should always be sought before taking any action.

Macleod & MacCallum cannot take any responsibility for loss incurred through acting or failing to act on the basis of anything contained in this publication.