Housing Citation, commencement and interpretation 1 1 These Regulations may be cited as the Registered Social Landlords (Repayment Charges) (Scotland) Regulations 2018 and come into force on 27th October 2018. 2 In these Regulations— “the 2004 Act” means the Tenements (Scotland) Act 2004 ; “the 2006 Act” means the Housing (Scotland) Act 2006; “flat” has the meaning given to it by section 29(1) (interpretation) of the 2004 Act; “notice” means a notice given in accordance with rule 9 (giving of notice) of schedule 1 of the 2004 Act; “repayable amount” means the sum the property concerned is charged with under a repayment charge made in accordance with regulation 2(1); “scheme costs” has the meaning given to it by rule 4.1 (meaning of “scheme costs”) of schedule 1 of the 2004 Act; “scheme decision” has the meaning given to it by rule 1.4 (meaning of “scheme decision”) of schedule 1 of the 2004 Act; and “tenement” has the meaning given to it by section 26 (meaning of tenement) of the 2004 Act. Repayment charges 2 1 Subject to paragraph (2), a registered social landlord may make in favour of itself a charge (“a repayment charge”) to recover a sum which— a the registered social landlord is entitled to recover from an owner of a flat in a tenement; and b represents the owner’s share of scheme costs as determined in accordance with section 4A(3) of the 2004 Act. 2 Paragraph (1) applies only where— a the registered social landlord— i is the owner of at least one flat in the tenement; and ii has paid an owner’s share of scheme costs by enforcing a scheme decision under rule 8.3 (enforceability of scheme decisions) of schedule 1 of the 2004 Act; and b the scheme costs are incurred as a result of a scheme decision in relation to any matter mentioned in rule 3.1 (basic scheme decisions) of schedule 1 of the 2004 Act, except costs for a common policy of insurance mentioned in rule 3.1(e). Notice of payment of share 3 Before paying an owner’s share of scheme costs by enforcing a scheme decision under rule 8.3 of schedule 1 of the 2004 Act, the registered social landlord must give notice to the owner who has failed to pay a share of any scheme costs of the registered social landlord’s intention to make the payment. Repayable amount 4 1 Subject to paragraph (2), the repayable amount is the lower of— a the amount recoverable under section 4A(5) of the 2004 Act; or b any lower amount determined by the registered social landlord. 2 The repayable amount mentioned in paragraph (1) may not exceed £10,000. Repayment period 5 1 The registered social landlord must— a determine— i the number of equal annual instalments, being no fewer than 5 and no more than 30, in which the repayable amount is to be paid; and ii the date in each year on which the instalment becomes due; and b notify the owner of its determination under paragraph (a). 2 The registered social landlord may— a determine that an equal annual instalment mentioned in paragraph (1) may be made by 12 equal monthly payments beginning on the date determined under paragraph (1)(a)(ii) and— i on the same day of each subsequent month; or ii if a subsequent month has no such day, on the final day of the month; and b notify the owner of its determination under paragraph (a). Early repayment 6 1 The owner of, or any other person interested in, any property subject to a repayment charge may at any time redeem the repayable amount early by paying to the registered social landlord— a such sum as the owner or other person may agree with the registered social landlord; or b failing such agreement, such a sum as an arbiter may determine. 2 The arbiter will be appointed by the Scottish Arbitration Centre . 3 The Arbitration (Scotland) Act 2010 will govern any such arbitration. Form of repayment charge and discharge 7 A repayment charge must be in the form set out in Part 1 of the schedule. 8 A discharge of a repayment charge must be in the form set out in Part 2 of the schedule. Registration of a repayment charge or discharge 9 1 The registered social landlord must register a repayment charge in the appropriate land register. 2 As soon as practicable after the repayable amount is paid, the registered social landlord must register a discharge of that repayment charge in the appropriate land register. Effect of registering a repayment charge or discharge of a repayment charge etc. 10 1 A registered repayment charge is conclusive evidence that the charge specified in it has been created in respect of the property specified in it. 2 A registered repayment charge constitutes a charge on the property specified in it and has priority over— a all future burdens and incumbrances on the same property; and b all existing burdens and incumbrances on the same property except any charges created or arising under— i any local Act authorising a charge for recovery of expenses incurred by a local authority; ii schedule 9 of the Housing (Scotland) Act 1987 ; iii section 172 of the 2006 Act ; or iv any Act authorising advances of public money. 3 A registered repayment charge is enforceable at the instance of the registered social landlord against any person deriving title to the charged property. 4 A registered repayment charge is not enforceable against— a a third party who acquires right to the charged property (whether title has been completed or not) in good faith and for value before the repayment charge is registered; or b any person deriving title from such third party. 5 A registered discharge of a repayment charge is conclusive evidence that the charge concerned has been discharged. Fees and expenses 11 The registered social landlord may recover from the owner of the property concerned— a the amount of any fee payable in respect of registering a repayment charge or a discharge of such a charge; and b any administrative expenses incurred by it in connection with such registration. Appeals 12 1 A person aggrieved by a determination under regulation 4(1)(b) or 5(1)(a) or (2)(a) may appeal to the sheriff. 2 On an appeal under this regulation, the sheriff may make such order relating to the repayable amount, number of instalments or frequency of instalments as the sheriff thinks fit. 3 The decision of the sheriff on appeal under this regulation is final. KEVIN STEWART Authorised to sign by the Scottish Ministers St Andrew’s House, Edinburgh 3rd October 2018