The first thing to note is that the power lies with you as Homeowners. The property belongs to you and it is your decision who manages your development.
The Deed of Condition which governs your development will stipulate how you appoint a new property manager and make decisions. The process is standard for many properties.
Calling a Meeting
Decision making takes place at quorate meetings. A quorum is defined as the required representation of owners at a meeting to make decisions. Communicating and organising meetings are an essential part of the changing factor process. In most circumstances the Deed will state the number of owners required to agree to calling a meeting.
There is no obligation to inform your current factor or invite them along unless otherwise stated (in the Deed).
The venue, date and time of the meeting should be communicated in writing to all owners. Donald Ross Residential are happy to assist in carrying out Land Register searches and checks of the Electoral Role. Where possible we can help with the manual distribution. This should be communicated with the relevant notice (often 7-14 days).
Ensuring a Quorum
To ensure a decision to dismiss your current factor can proceed, it is important that a quorum of owners is represented at a meeting. This can be in the form of physical attendance or representation via a signed proxy mandate in advance.
Hosting the Meeting
Meeting venues vary depending on location, size of the development and ease of access. Donald Ross Residential are happy to provide our local Ayrshire offices (Ayr and Kilmarnock) to owners at no expense. It is also possible to host a meeting in one of the properties, a local hall or in a common stairwell. Most meetings take place in the evening to suit owners that perhaps work during the day, but this is not always a requirement. Before the meeting begins, all those present should sign the Register and Proxy Votes presented.
Once the Meeting Convenes...
- Is there a quorum in place to make decisions? (either present or by proxy mandate)
- A Chairperson for meeting should be appointed along with a Minute Taker
- Proposal is raised, and a vote takes place. If the required quorum (often a simple majority) is attained, the decision is carried.
- The meeting is concluded if no other business is to be discussed.
Communicating the Outcome and Relevant Administrative Duties
After the meeting, minutes should be distributed to all owners.
A copy of the Register should be passed to the outgoing factor along with:
- Copy of the Minutes
- Letter of Termination
- Copy of Proxy Mandates
- Copy of Letter Inviting owners to attend
Most factors request three months termination and a date should be proposed in the letter to coincide with this period. If owners are unsure of the format or content required for a termination letter, Donald Ross Residential can supply a copy of standard templates. Owners can then decide how they wish to use this information.
The process is then complete, owners can look forward and plan for a new chapter in their development.
Where can Donald Ross Residential help?
Despite the misconception of many traditional factors, it is perfectly acceptable (unless otherwise highlighted in the Deed) for us to assist in the following ways:
- Produce a comprehensive Proposal Pack listing our bespoke service and costings.
- Property Management is an open marketplace, there are no rules with offering owners generic templates of letters and registers, many of whom will never have drafted termination paperwork before. It is at their discretion how they use this publicly available information.
- Owners are always expected to call meetings directly but there is no legal obstruction preventing a third party from assisting in this process. The decision on venues, dates and times of meetings are at the discretion of owners.
- Attend owner’s meetings to answer any questions, present and assist with general interpretations.
- We will obtain a copy of your Development Deed of Condition and inform of the required numbers and protocols to be taken to ensure compliance.
- Visit with owners for informal consultations prior to any owner’s meetings.
- Assist owners to form Owner Committees to aid communication.