Recovery of Arrears in Scotland - DAC Beachcroft

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Recovery of Arrears in Scotland

Published On: 22 December 2014

All leases in Scotland can be registered in the Books of Council & Session if permitted by the terms of the lease. If a lease is registered for both preservation and execution the landlord will have access to a quick process for recovery of sums due under the lease without the necessity for a Court Order.

If arrears are outstanding summary diligence (enforcement) can be carried out against the tenant by an official copy of the lease from the Books of Council & Session being passed to Sheriff Officers to enforce by:

  1. Service of a charge which requires the tenant to pay the sum due within fourteen days, failing which, (unless a Time to Pay Order has been granted, and this is available only to non-corporate tenants) the landlord can present a bankruptcy or liquidation petition to the Court; or
  2. Arresting the amount owed to the landlord either in the tenant's bank account or in respect of funds owed to the tenant by third parties. Any sums caught by the arrestment must be released to the landlord fourteen weeks after the date of service of the arrestment.

Additionally, if the lease has been registered for execution or a Court Decree has been obtained against the tenant and the amount owed is more than £3,000.00, then (provided this is not residential property where a special application is required) the tenant's assets may be made the subject of an Attachment Order preventing the tenant disposing of such property.

If you have property in Scotland and would like more information on your recovery options, please contact us.