How to Get Rid of Your Property Factor
If your current factor is causing more stress than support, you may be wondering how to get rid of your property factor. Here at Factors Direct, we often speak with homeowners who feel trapped or unhappy with their existing arrangement. In this blog, I’ll guide you through the key steps, from terminating factor services and evaluating notice periods, to switching property factors or exploring self-factoring as an alternative.
When Should You Consider Changing Factors?
Not all relationships with a factor end in conflict. However, you may notice ongoing issues such as:
- Chronic poor communication
- Unjustified or hidden charges
- Slow or incomplete maintenance work
- A general lack of transparency in contract terms
If these problems persist despite attempts to resolve them, it could be time for a change.
Step-by-Step Guide to Ending a Factor Contract
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Review Your Existing Agreement
Start by checking the terms and conditions set out in your factoring contract. Pay close attention to any notice period requirements. Some contracts specify a formal process for withdrawal, often involving written notice and agreement among co-owners. -
Consult Co-Owners
In most Scottish tenement or communal buildings, decisions about factoring must be made collectively. Arrange a meeting or circulate a memo explaining your concerns, and gauge whether others share your views. -
Provide Formal Notice
Send a written letter or email to your factor indicating your intention to terminate their services. Cite the relevant clauses from your contract, and ensure you keep a dated copy of your communication. If you have a Homeowners’ Association or Residents’ Association, it’s wise to involve them too. -
Settle Outstanding Balances
Before switching to another factor or self-managing, you’ll need to clear any unpaid fees. This is essential to avoid disputes or potential legal issues during the termination process. -
Choose a New Factor or Self-Factoring Option
- Switching Property Factors – Research reputable companies, check reviews, and compare costs. Request itemised proposals so you can see which services are included.
- Self-Factoring – Some owner-occupiers prefer a DIY approach, pooling resources to handle communal maintenance. While it can save on costs, it also requires more effort and coordination among owners.
Frequently Asked Questions
Q: Do I need unanimous agreement from all co-owners to change factors?
A: In many cases, the title deeds or the Tenement Management Scheme require a majority vote. It doesn’t always have to be unanimous, but check your specific legal documents to confirm.
Q: What if the factor refuses to accept the notice?
A: If you’ve followed the correct procedure as per your contract, the factor must respect your decision. Should any disputes arise, you can seek advice from legal professionals or the First-tier Tribunal for Scotland.
Q: Is self-factoring worth it?
A: It depends on the skills and time homeowners can commit. While it can be cost-effective, you’ll be responsible for everything from organising repairs to collecting fees. If you’re willing to invest the effort, it can offer greater control.
Ending a relationship with a property factor isn’t always straightforward, but it can be a crucial step if you’re facing ongoing dissatisfaction. By understanding your contract obligations, working collaboratively with other homeowners, and carefully selecting your new provider (or embracing self-factoring), you can ensure a smoother transition. At Factors Direct, we’re here to support you if you’re seeking a more transparent, proactive factoring service. Feel free to reach out with any questions or concerns.
