A new level of transparency is coming to land ownership

Katie Melville is a property solicitor at law firm Wright, Johnston & Mackenzie LLP

The Register of Controlled Interests (RCI) has been developed to promote transparency of individuals who have decision-making powers over land ownership in a bid to empower community groups, tenants, and members of the public to better understand who is in charge of specific areas of Scottish land.

Many will already be familiar with the concept of a Legal Guardian or a Power of Attorney, and in Scotland, those appointed to these roles are listed on a national register, overseen by an Ombudsman. A similar system listing individuals with significant control in land would apply more equal transparency to them, which is why the new RCI is being created.

Registers of Scotland will be managing the Register, available to access digitally and free of charge.

Those subject to this Register include individuals who have certain contractual arrangements with an owner or tenant of land, people involved in partnerships who own or tenant land on their behalf, and those appointed as Trustees of areas of land.

Unincorporated bodies and overseas entities will also be included, making it easier for people to find out who exactly has a controlling interest over a piece of land without this information being obscured by a company name, as can sometimes be the case without such a Register.

Tenants of rental properties are likely to find this new legislation particularly useful. A tenant living in a rented property managed by a letting agent may never deal directly with their landlord, or have any information on who actually owns the property. This new Register will provide access to more information on Landlords, and afford more transparency and accountability in the event of disputes.

The public will also have the opportunity to find out who controls land in their communities, which may empower people to engage with decision-makers impacting local sustainable development.

There are some exceptions. Individuals who are already included in the Register of Persons with Significant Control will not be added to the new Register of Controlled Interests. Also excepted are many UK companies, Scottish companies where all partners are Limited Companies, and those subject to the Financial Conduct Authority, because they are already regulated by an existing Register.

In certain cases, those who require anonymity due to security concerns will also be exempt, and will have the opportunity to opt-out of this Register.

Those who fail to register, or provide incorrect or misleading information to the RCI, could face a fine of up to £5,000. There will, however, be a one-year grace period from 1st April to offer those affected time to ensure they have followed the necessary guidance and provided all relevant information.

Once the initial onboarding to the RCI is complete, we anticipate that a recent search of the RCI and, if necessary, production of a form to update the register will become standard diligence items in transactions involving land in Scotland.

We advise anyone who thinks they may be affected by this new law to seek legal advice as the legislation comes into force.

Katie Melville is a property solicitor at law firm Wright, Johnston & Mackenzie LLP

A new level of transparency is coming to land ownership - Katie Melville