A factor services firm says court action raised by Angus residents was ”totally unjustified and completely misguided”.
The statement released by Greenhome Property Management rubs further salt in the wounds of three Monifieth families, who lost a lengthy court battle for non-payment of charges.
The householders, led by Graham Thoms, wanted to prove the firm should not have the right to charge for the upkeep of common spaces on the West Grange Estate. However, Sheriff Derek Pyle judged in favour of the company at Arbroath Sheriff Court on Friday.
Greenhome managing director Julie Muir said the outcome was a ”significant victory”, but added that it was regrettable that action had been necessary.
She said: ”The judgement supports our right to charge and be paid for a fair and legal service.”
Greenhome maintains all public open space land on the estate in Monifieth, and has 2,700 customers on similar housing development across Scotland. The Glasgow firm charges for management and maintenance costs and takes a fee to cover public liability insurance.
This month the Property Factors (Scotland) Bill will be introduced, with the aim of settling disputes between householders and firms such as Greenhome.
The move follows a consultation carried out by the Scottish Government to investigate how it could be made easier for residents to get rid of unwanted land maintenance companies.
Property factors must now be registered and adhere to a code of conduct and a dispute resolution service.
The group of property owners at West Grange began to withhold payment for factoring because they were unhappy with both the quality of work and the amount being charged.
Many claimed they had never signed up for such a service, but the court ruled that a clause in the title deeds of their homes meant Taylor Wimpey, which built the estate, had the power to appoint a factor.
Some of the homeowners have tried to set up a committee to decide who is responsible for the upkeep of the estate, with campaigners claiming that more than 80% of householders want to opt out of the agreement with Greenhome.
Mr Thoms challenged the firm’s right to charge a fee to look after common ground, claiming the company’s contract was both unfair and illegal. If the court judgment had gone in favour of the residents it could have set a legal precedent for claims across the UK.
Despite finding in favour of Greenhome, Sheriff Pyle noted a number of flaws in how the firm had acted.
In recent years there has been a growing trend among housebuilders to pass the responsibility for common areas to an outside agency rather than pay for the council to adopt the land.
Photo by Flickr user SMercury98.