Resumption of Croft Land

Relevant Section of the 1993 Act- Section 20 Resumption of croft or part of croft by landlord & Section 21 Crofters right to share in value of land resumed by landlord

If a landlord would like to remove an area of their tenanted land from crofting tenure an application must be made to the Scottish Land Court.  A Landlord making an application to resume tenant croft or common grazing land must give notice of it to the Commission who may, if they think, fit, oppose or support the application.  Please note that it is typically expected that in the case of resumption the Landlords would pay the crofter or shareholders 50% of the development value of the land by means of compensation. Resumption of croft land is also a trigger event for croft registration which should be carried out by the Landlord.

Crofters Right to Buy

Relevant Section of the 1993 Act 12 General provision & 13 Authorisation by Land Court of acquisition of croft land

A tenant crofter is entitled to purchase their croft house and garden ground. They can also purchase part or all of their croft.

A crofter may, failing agreement with the landlord to the purchase of part or all of the croft apply to the Land Court for an order authorising them to make such acquisition.

Consideration payable in respect of acquisition of croft land 

Relevant Section of the 1993 Act 14 Consideration payable in respect of acquisition of croft land

Where the Land Court makes an order in accordance with section 13(1)(a) of the 1993 Act and the crofter and the landlord have failed to reach agreement about the consideration payable in respect of the acquisition. The crofting value of the croft land, as determined by the Land Court shall be the current rent payable for the croft multiplied by 15. The Landlord may apply to the Land court before the final order is issued to determine a fair rent for the croft which shall be deemed to be the current rent for the purposes of Consideration payable.

The Landlord can grant a security on land acquired by section 13(1) of the 1993 act so if it is sold within 10 years the Landlord is entitled to receive a clawback of 50% of the market value of the land.

Determination by Land Court of terms and conditions for conveyance of the site of the dwelling-house

Relevant Section of the 1993 Act Section 15

The Land Court, on an application made to it under section 12(2) of the 1993 Act, may make an order requiring the landlord to convey the site of the dwelling house.Where the parties have failed to reach agreement about the consideration payable in respect of the conveyance the consideration shall be—

(a) the amount as determined by the Land Court which the site, if sold in the open market by a willing seller, might be expected to realise assuming that—

1.  (i) there were or would be no buildings on the site;
2. (ii) the site were available with vacant possession;
3. (iii) the site were not land to which this Act applies; and
4. (iv) no development of the site were or would be permitted in pursuance of the 1997 Act;

Compensation to crofter for improvements

Compensation to crofter for improvements –Section 30  & Assessment of compensation for improvements Section 32

Where a crofter renounces his tenancy or is removed from his croft, they may be entitled to compensation for any permanent improvement made on the croft.

The amount of any compensation payable in respect of a permanent improvement on the croft shall be a sum equal to— the value of that improvement as at the date when—

1. (i) the crofter renounced his tenancy, or
2. (ii) the crofter was removed from the croft, or
3. (iii) the tenancy of the croft was terminated

If agreement cannot be reached, then an application can be made to the Land Court for Determination.

Schemes for Development – Section 19a

Schemes for Development – Section 19a

The Landlord, or any person acting with the consent of the landlord, may either: apply to the Scottish Land Court for consent to croft or common grazing land being developed in accordance with a scheme; or intimate to the Court that every person who has rights in or over croft land or a common grazing consents to its being developed in accordance with the scheme.

A copy of the application to the Land Court should also be sent to the Crofting Commission.

The Land Court will not give its consent unless it is satisfied:

(a) that the development is for a reasonable purpose;

(b) that to carry it out would not be unfair;

(c) that the scheme provides for there to be fair recompense to each member of the crofting community in the area affected by the development for the effects of the development, at least equivalent to the recompense which the member might be expected to obtain had the land been resumed

(d) that, were the development carried out –

            (i) that community would be likely to benefit financially;

(ii) such benefit would be at least commensurate with any financial benefit which the members of that community might obtain on the development proceeding other than by virtue of this section.

The applicant needs to give public notification of the application after which there are 28 days for the Commission or any other interested party to submit any objection.

Should the application be approved the terms of the scheme will be binding upon the:

a) the landlord

(b) any member of the crofting community in the area affected by the development;

(c) any person who, though not described in paragraph (b) above, is --

        (i) a tenant of a croft; or

        (ii) a holder of grazing rights, in that area; and

(d) the successors to the persons mentioned in paragraphs (a) to (c) above.

For further information please visit Scottish Land Court Application Forms