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Compulsory Owners’ Associations for Tenements: what it could mean in practice

The Scottish Law Commission has proposed making Owners’ Associations compulsory for all tenement/shared buildings in Scotland. Under these recommendations, every multi-owner building would automatically form a legal association responsible for maintenance, budgeting, and decision-making, with duties like appointing a manager and holding an AGM.

For residents, this could mean clearer responsibility, faster repairs, and less conflict over shared works. It could also strengthen the role of professional factors, who can be appointed to manage the association and ensure consistent upkeep.

In practical terms, compulsory associations could encourage proactive maintenance planning, reduce delays caused by non-engaged owners, and make it easier to agree and fund shared improvements.

Case study: communal buildings in Spain

Owner's Associations have been mandatory in many European countries for a long time, providing a route for residents to maintain their building value and coordinate with councils and contractors

A key argument in favour of compulsory Owners’ Associations is that similar models already operate successfully across much of Europe. In many countries, shared ownership is underpinned by automatic legal communities that manage common parts, collect contributions, and make binding decisions. These systems tend to normalise collective responsibility from the outset, reducing ambiguity and limiting the scope for long-running disputes over maintenance and costs.

Spain is often cited as a clear example, where the Ley de Propiedad Horizontal (Horizontal Property Law) has governed apartment buildings for decades. Under this framework, owners automatically become members of a community with defined voting rights, mandatory contributions, and enforceable decisions.

While disagreements still occur, the existence of a clear legal structure means they are resolved within an established system rather than through ad-hoc negotiation or stalemate.

The Spanish experience suggests that compulsory participation does not undermine individual ownership, but instead provides a stable platform for managing shared assets — a lesson that could be particularly relevant for Scotland’s ageing tenement stock.

A consistent baseline for shared buildings

Beyond the immediate day-to-day benefits, the proposals aim to create a more consistent legal baseline across Scotland’s diverse housing stock. At present, responsibility for shared repairs can vary depending on title deeds, building age, and past practice.

A compulsory Owners’ Association would replace this patchwork with a uniform structure, reducing uncertainty for owners and making it easier to understand who is responsible for what — particularly for buyers moving between different types of shared buildings.

In principle, a compulsory association could bring:

Clear accountability: a defined body responsible for organising shared maintenance
Planned budgeting: predictable contributions rather than sudden emergency bills
Faster decisions: fewer delays caused by hard-to-reach or disengaged owners
Support for professional management: clearer routes to appoint a factor/manager where needed
Better building condition: less drift into disrepair through inactivity

What owners may worry about

Compulsory participation will inevitably raise concerns about cost, control, and enforcement. Owners may worry about increased factoring fees, mandatory contributions, or being outvoted on spending decisions.

If implemented well, safeguards would likely need to include:

Transparent accounting and accessible reporting
Clear voting rules and decision thresholds
Fair dispute resolution for contested works or costs

The concept is strong — the success will be in the detail of how it’s applied day to day.

Why the structure matters in real life

Shared buildings don’t typically fail because owners disagree about the importance of maintenance — they fail because the process is unclear, inconsistent, or too easy to stall.

Urgent repairs delayed because nobody is empowered to instruct works
Costs disputed due to unclear splits or missing paperwork
Buildings slipping into disrepair as issues accumulate gradually
Strain between neighbours when one or two owners carry the organisation burden
Higher overall spend when planned works become emergency works

In that context, a mandatory Owners’ Association is less about "more rules" and more about making sure decisions can actually be made and acted upon.

7days takeaway

Compulsory Owners’ Associations address real weaknesses in how shared buildings are currently managed.

European experience suggests the model can work — but only if costs, powers, and accountability are clearly defined.

The role of professional management

One practical outcome of compulsory Owners’ Associations is that it could strengthen the route to appointing a manager or professional factor, particularly where buildings are struggling to coordinate works.

Done well, professional management can:

Schedule inspections and plan cyclical maintenance
Build transparent budgets and sinking funds
Run decision-making fairly, with records owners can rely on

Not every building will want or need the same level of management, but a standard association model makes it easier to choose what fits — and to change course when it doesn’t.

Ultimately the proposals are aimed at making shared ownership function more like a system and less like a negotiation. If they're implemented with clear rules, transparent costs and accessible dispute resolution, compulsory associations could help tenements stay in better condition, reduce conflict and prevent maintenance from becoming a recurring crisis.

Key details will include how decisions are made, how contributions are enforced, what protections exist for owners on tight budgets, and how professional management is regulated. Those practical choices will determine whether the model feels supportive, or simply additional red tape. At 7days we're watching with interest to see how this develops so we can get ahead of any concrete proposals.

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