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Land Reform (Scotland) Act 2003

Section 63:  Compensation

234.This section deals with the payment of compensation to persons, except community bodies, who have suffered loss or expense arising from the operation of Part 2.

235.Subsection (1) sets out the circumstances in which compensation is payable by Ministers.

236.Subsection (2) states that compensation will only cover the loss or expense incurred as a result of determining the date of entry in terms of section 56(3)(a) and (b) where it is of a type which would not normally be incurred had the sale of the land been to persons other than a community body.

237.Subsection (3) limits the payment of compensation to the period of operation of the community right to buy, which period expires 6 months from the date the community body confirmed exercise of its right to buy. In the event that the valuation is appealed, the period is extended to 2 months after the determination or settlement of the appeal. Compensation will not be paid to cover any longer period agreed between the seller and the community body.

238.Under subsection (4), any person who has incurred loss or expense due to their right of pre‑emption, redemption or reversion having been suspended is entitled to compensation from Ministers.

239.Subsection (5) provides for the procedure for assessing loss and for calculating and recovering compensation to be prescribed by order made by Ministers.

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Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.


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