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Home Owner & Debtor Protection (Scotland) Act 2010 – key issues for the advice sector, lay representatives & solicitors El...
Home Owner & Debtor Protection (Scotland) Act 2010  <ul><li>Amends Conveyancing & Feudal Reform (Scotland) Act 1970 & Heri...
Court action must be raised <ul><li>Sections 1 & 2 – lender must raise court action to enforce standard security </li></ul...
Pre-Action Requirements  <ul><li>Lender must certify having complied with PARs and detail compliance </li></ul><ul><li>Cle...
Initial Court Procedure <ul><li>All cases must call in court </li></ul><ul><li>Hearing assigned when application made by l...
Court hearing <ul><li>If borrower doesn’t attend hearing decree not necessarily granted against him </li></ul><ul><li>Sher...
Court hearing – borrower present <ul><li>If borrower attends or is represented at hearing he can oppose application.  </li...
Matters for court to consider <ul><li>Nature of and reasons for default </li></ul><ul><li>Ability of borrower to fulfil ob...
Further Court procedure <ul><li>Sheriff may order Answers </li></ul><ul><li>Sheriff decides how best to proceed in circums...
Entitled residents <ul><li>Entitled residents to be disclosed in Initial Writ or Answers </li></ul><ul><li>Sheriff will or...
Minute for Recall <ul><li>Done by lodging form 11F </li></ul><ul><li>Hearing will be fixed on application </li></ul><ul><l...
Lay representatives <ul><li>Must be an approved lay representative </li></ul><ul><li>Must be able to satisfy Sheriff throu...
Legal Aid & Expenses <ul><li>Consider whether client eligible for legal aid </li></ul><ul><li>May have a contribution to p...
Transitional Provisions <ul><li>Actions raised pre 30 September 2010  </li></ul><ul><li>Calling up notice/notice of defaul...
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Shelter Scotland Housing Law Service – Key Issues for the Advice Sector, Lay Representatives & Solicitors

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Shelter Scotland Housing Law Service – Key Issues for the Advice Sector, Lay Representatives & Solicitors

  1. 1. Home Owner & Debtor Protection (Scotland) Act 2010 – key issues for the advice sector, lay representatives & solicitors Eleanor Hamilton, Principal Solicitor Shelter Housing Law Service
  2. 2. Home Owner & Debtor Protection (Scotland) Act 2010 <ul><li>Amends Conveyancing & Feudal Reform (Scotland) Act 1970 & Heritable Securities (Scotland) Act 1894 </li></ul><ul><li>New provisions relating to enforcement of standard securities </li></ul><ul><li>Applies to standard securities over residential property </li></ul>
  3. 3. Court action must be raised <ul><li>Sections 1 & 2 – lender must raise court action to enforce standard security </li></ul><ul><li>One exception – voluntary surrender </li></ul><ul><li>Action raised as summary application by lender lodging Initial Writ at Sheriff Court </li></ul>
  4. 4. Pre-Action Requirements <ul><li>Lender must certify having complied with PARs and detail compliance </li></ul><ul><li>Clear information on terms of security, amount due, charges and any other default </li></ul><ul><li>Made reasonable efforts to agree proposals </li></ul><ul><li>Has given notice to borrower if default on previous agreement </li></ul><ul><li>Borrower hasn’t taken steps likely to result in payment of arrears </li></ul><ul><li>Has provided borrower with information on advice </li></ul><ul><li>Has encouraged borrower to contact local authority </li></ul><ul><li>Has had regard to guidance issued by Scottish Ministers </li></ul>
  5. 5. Initial Court Procedure <ul><li>All cases must call in court </li></ul><ul><li>Hearing assigned when application made by lender </li></ul><ul><li>Borrower will receive copy of Initial Writ and intimation of hearing </li></ul><ul><li>No need for borrower to lodge Notice of Intention to Defend or Section 2 Minute </li></ul>
  6. 6. Court hearing <ul><li>If borrower doesn’t attend hearing decree not necessarily granted against him </li></ul><ul><li>Sheriff can only grant application if satisfied that lender has complied with PARs and that it is reasonable to grant decree </li></ul>
  7. 7. Court hearing – borrower present <ul><li>If borrower attends or is represented at hearing he can oppose application. </li></ul><ul><li>Borrower can inform court that PARs not complied with </li></ul><ul><li>Borrower can suggest that even if PARs complied with is not reasonable to grant decree </li></ul>
  8. 8. Matters for court to consider <ul><li>Nature of and reasons for default </li></ul><ul><li>Ability of borrower to fulfil obligations within a reasonable period of time </li></ul><ul><li>Any action taken by creditor to assist borrower </li></ul><ul><li>Participation by borrower in a debt payment programme </li></ul><ul><li>Ability of debtor and other residents to secure reasonable alternative accommodation </li></ul><ul><li>Not an exhaustive list </li></ul>
  9. 9. Further Court procedure <ul><li>Sheriff may order Answers </li></ul><ul><li>Sheriff decides how best to proceed in circumstances of case </li></ul><ul><li>May fix further hearing after Answers lodged </li></ul><ul><li>May allow time for adjustment </li></ul><ul><li>May continue or sist action </li></ul><ul><li>May fix an evidential hearing </li></ul><ul><li>May grant decree or refuse application </li></ul>
  10. 10. Entitled residents <ul><li>Entitled residents to be disclosed in Initial Writ or Answers </li></ul><ul><li>Sheriff will order Initial Writ to be served on them </li></ul><ul><li>Can apply to court for an order using form 11E </li></ul><ul><li>Hearing assigned when application made </li></ul><ul><li>Sheriff can also order Answers </li></ul><ul><li>Application and hearing to be intimated to other parties </li></ul><ul><li>At hearing Sheriff to have regard to same matters as for borrower’s first hearing </li></ul>
  11. 11. Minute for Recall <ul><li>Done by lodging form 11F </li></ul><ul><li>Hearing will be fixed on application </li></ul><ul><li>Application and hearing to be intimated to other parties </li></ul><ul><li>Decree must be recalled at hearing </li></ul><ul><li>If applicant doesn’t attend Sheriff will fix peremptory diet </li></ul><ul><li>Only one application may be submitted by each party </li></ul><ul><li>Application can only be made if client has not appeared, been represented or submitted application in proceedings </li></ul>
  12. 12. Lay representatives <ul><li>Must be an approved lay representative </li></ul><ul><li>Must be able to satisfy Sheriff throughout proceedings that suitable person to represent borrower or entitled resident and is authorised to represent that person </li></ul>
  13. 13. Legal Aid & Expenses <ul><li>Consider whether client eligible for legal aid </li></ul><ul><li>May have a contribution to pay towards costs </li></ul><ul><li>May be a recovery of money/preservation of property </li></ul><ul><li>Effect of award of legal aid on expenses </li></ul><ul><li>Advise client about cost implication of opposing application </li></ul>
  14. 14. Transitional Provisions <ul><li>Actions raised pre 30 September 2010 </li></ul><ul><li>Calling up notice/notice of default served pre 30 September 2010 </li></ul><ul><li>In future cases recall of decree will depend on whether decree granted in action raised pre 30 September 2010 or after </li></ul>

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