Written Statement of Services V2 : simplebooklet.com

IntroductionThis "Written Statement of Services" describes the service levels andarrangements that exist between Residential Management GroupScotland (SC591810), property factors and property owners within yourdevelopment. The statement has been produced in accordance withthe requirements of the Property Factors (Scotland) Act 2011 and theProperty Factors Code of Conduct. Residential Management Group Scotland will be referred to as RMGScotland hereafter.Authority to Act A Property Factor can be appointed as the result of either:appointment by a developer, by a decision of the majority of propertyowners, by custom and practice or by formal business acquisition. Themanagement appointment date is detailed in your developmentschedule. Our authority to act includes the management of the common parts inso far as: Routine maintenance Planned and reactive repairs and renewals Emergency repairs Utilities and utility bills (where applicable) Major works Statutory Health & Safety compliance Insurance On-site staff For non-emergency repairs, the ultimate decision to authorise anywork will be made by RMG Scotland up to an amount of £1,000Non-emergency works which are likely to exceed this cost willrequire consultation with the homeowners. Emergency repairs that constitute a threat to persons or propertymay be actioned immediately by RMG Scotland. RMG Scotland willwrite to all affected homeowners thereafter, detailing remedialactions and costs if exceeding the authorised repair limit. The decision to escalate a repair as an emergency will be made byRMG Scotland based on the conditions and hazards present. RMG Scotland will only use approved and authorised contractorsfor any repair work and will always endeavour to obtain the bestpossible value for its customers. Comparative quotations will be arranged, where appropriate, byRMG Scotland. RMG Scotland operates an approved contractorprocess to ensure contractors are adequately insured to work onyour behalf. 01Property Factor Registration Number: PF000763

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02Property Factor Registration Number: PF000763 Core Services Provided RMG Scotland provides an extensive range of services for parts or areas of abuilding or development, which the homeowners have a liability in commonto maintain. The core services provided cover the maintenance, managementand repair of the common parts in line with the previous page. Private areas are those that belong to the homeowner's individual propertiesand are not included in our services. These may include, but are not limited to: All areas inside the home (excluding load-bearing wallsand beams) Controlled entry handsets and systems inside the home Private balconies Entrance doors into individual properties Private windows and surrounds, mastic etc. Overflows serving private appliances Vents and flues serving private appliances Private water/gas pipes etc. from the point of exit fromcommunal supplies It is the homeowners' responsibility to ensure these areas are maintained ingood order. RMG Scotland will only carry out the services as detailed in this WrittenStatement of Services. RMG Scotland reserve the right to become involved inprivate matters, where appropriate.

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03Property Factor Registration Number: PF000763 Maintenance andRepairs Arrangements Routine MaintenanceGardening and cleaning services will be provided where we areappointed to maintain those areas. Roof inspections, gutter cleaning etc. will be provided, where applicable,specific to your property and development.Statutory inspections of lifts, emergency lighting, fire-fightingequipment, Health & Safety inspections will be arranged, whereapplicable, by RMG Scotland property factors in accordance with theindividual requirements. Routine Repairs Requests for routine repairs can be made using the followingcommunication methods: Through the customer portal, RMG LivingLive chat through the website or RMG LivingMessage us for free via WhatsApp on 07966 167590 (please includeyour name, first line of address and postcode)By email to customerservice@rmgscotland.comBy telephone to the Customer Service Centre on 0345 002 4499 By advising your property manager during a routine inspection of yourbuilding.Emergency Repairs Requests for emergency repairs should be made by calling ourCustomer Service Centre which is open 24 hours a day, 365 days ayear. Our Customer Service Centre can appoint an emergencycontractor or escalate the call to the property manager, ifnecessary, and if during working hours. Emergency out of hours contractors available are typically: Plumber Electrician Locksmith Joiner Glazier Drainage Roofer Please note, that emergency repairs instructed by RMG Scotland willbe in respect of common parts only. Costs for emergency repairs willbe apportioned among those homeowners with liability to pay andwill be charged at the out of hours contractor rate. Private emergency repairs are the homeowner's responsibility toarrange and pay. Major WorksMajor works may also be referred to as proposed repairs or works and aredefined as significant planned works where costs exceed our normalauthority to act. RMG Scotland may impose a facilitation fee up to 10% foroverseeing major works. Such projects may include:Communal painting schemeStructural repairMechanical and electrical replacementExtensive roof repair or replacementExtensive building façade repairsMajor flooring renewalMajor garden re-designExtensive road and car park resurfacing

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04Property Factor Registration Number: PF000763 Major project discussions can result from: Common fabric failuresTitle deed requirement (e.g. deeds stipulate communal painting every3 or 5 years) The recommendations of a professional inspection (e.g. a roofcondition report) A recommendation by your property managerA request from homeownersRMG Scotland will contact homeowners to establish the level of interestin a particular project. A written ballot may be used to obtain thehomeowner's decisions. It is standard practice to obtain a projectspecification and seek comparative quotes or undertake a tenderexercise. Without majority approval or the percentage set out in thedeeds to make binding decisions, major projects can't proceed unlesssignificant and immediate Health & Safety issues prevail. Professional consultants may be required to provide professional servicesthat are out of RMG Scotland's remit. In these cases, comparative feequotes will be obtained from suitably experienced firms for consideration.Once a project has been agreed upon by owners and acontractor/quotation selected, sufficient funding must be in place prior tothe commencement of the project. This ensures the ability to settle thecontractor's invoice. (The costs involved in major projects are such thatthe financial resources within the development fund would normally beinsufficient to cover the costs under our invoicing terms). There are two ways in which funds can be raised. In gathering funds RMGScotland will calculate the individual project cost and issue a proposedworks invoice to each homeowner. Only when sufficient funds have beeningathered, can formal instruction be issued to the contractor. RMG Scotland will determine what percentage of funds will be requiredto start the process. This will depend on the financial health of thedevelopment, problems with income recovery etc. It should be noted thatit is possible for the agreed works not to go ahead if insufficient funds areingathered within a twelve-month period. In such cases, funds receivedwill be returned to the homeowners. Use of Sinking Fund Ingathering of funds may not be required if:There is a sinking fund in place for the developmentThere are sufficient funds available to cover the cost of the project. (Acombination of sinking and ingathered funds may be preferred orrequired)A competent decision is reached by the homeowners to utilise thesinking fundThe sinking fund is used, individual invoices will not normally be raisedRMG ScotlandMajor Works ContinuedIt is important that the common parts are kept to a good standard ofrepair. Not only does this improve the daily visual benefits of a well-maintained, clean environment, but it also helps maintain/improve thevalue and saleability/rentability of your property. For these reasons, ongoing maintenance/improvements are essential. In some geographic areas, grants and subsidies may be available fromlocal authorities and trusts. In such cases, RMG Scotland, or theappointed professional consultant, will liaise with the relevantorganisations to obtain current requirements for possible grant-assisted funding.

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05Property Factor Registration Number: PF000763 Response TimesRoutine Repairs - Where development liquidity allows, we aim to instructroutine repairs on the first working day following receipt of notification. Ifthe cost of the repair exceeds our delegated authority spend limit,comparative quotations will be sought, and the homeowners will beconsulted. Anticipated timescales for obtaining estimates are 15 days butmay be subject to external influences. Emergency Repairs – In order to prioritise emergencies immediately,emergency repairs should be reported by telephone to our CustomerService Centre. In some cases, it may only be possible to "make safe" ahazardous situation within the aimed time scale, depending on the natureof the emergency. Alterations/enhancements – RMG Scotland will consult the owners toseek a unanimous decision for works of this nature. Once approved andrequested, response times for routine repairs will apply.Property Inspections Routine property inspections will be made by the property manager at afrequency agreed by the terms of our appointment. Visits can be morefrequent in the event of ongoing problems, repairs, major projects etc. In the event that matters are out with the professional expertise of aproperty manager, other professional services, such as building surveyorsand structural engineers, may be required. Homeowners will be informedin these circumstances and provided with comparative fee quotes forconsideration. Health & Safety Fire RiskAssessments RMG Scotland will arrange for a Health & Safety and fire risk assessment tobe completed on your building as follows, this will be completed by aqualified Health & Safety manager. Buildings 18 meters and above, inspections will be completed annuallyBuildings of 11 to 18 meters, inspections will be completed every 2 yearsBelow 11 meters inspections, will be completed every 5 yearsYour property manager will write to homeowners to confirm when theseare being completed. If a hazard is identified and is a high priority, we willlook to instruct this work and notify homeowners of this.

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06Property Factor Registration Number: PF000763 Financial and ChargingArrangementsManagement FeesAn annual factoring management fee, detailed in your developmentschedule, will apply to each property/homeowner in the development. Thisfee is correct at the date of publication of the development schedule andwill be reviewed on an annual basis. The fee is determined, generally, by the scope of works provided and thesize of the development and may change if the scope is altered (e.g.grounds only to full block management). The management fee will bereviewed annually, and a maximum of 5% uplift will be applied unless youare advised otherwise. See below for further invoicing details. The fee review process will take intoaccount many factors such as inflation, ongoing operational costs, cost ofcompliance etc., as well as any changes in scope. Apportionment of costs All costs incurred in the ongoing common works and services provided byRMG Scotland in the maintenance of the development will be shared, asappropriate, between homeowners. These include, where applicable: Routine maintenance costs Planned, reactive repairs and renewals Emergency repairs Utilities and utility bills (where applicable) Major worksStatutory Health &Safety Compliance insurance On-site staffThe split (or apportionment) of costs is normally determined by the propertytitle deeds or deed of conditions and is detailed within your developmentschedule. If there is no provision in the deed of conditions for some costs, theapportionments will be agreed between RMG Scotland property factors andthe homeowners. Where no definition exists, the Tenements (Scotland) Act2004 will apply. Float Funds On the appointment of RMG Scotland property factors to manage yourdevelopment, a float payment will be collected. The float is used by RMGScotland to fund the payment of goods and services on your behalf untilcommon charges invoices are issued and paid. Floats are credited to eachhomeowner after departure from their property and will appear as such onthe final invoice. The date of the final invoice is determined by the transfer of ownership or saledate. The full amount of the float will be repaid to the homeowner minus anyoutstanding costs on the account. The float amount quoted in your development schedule is correct at the dateof publication of this Written Statement of Service and may be subject tochange if costs increase. RMG Scotland will write to you if a float increase isrequired. Sinking/Reserve/Contingency Funds In order to financially plan for major projects, a sinking or reserve fund can bearranged for the development by RMG Scotland. Such funds are held by RMGScotland in separate bank accounts in the name of the development. Sinking funds are agreed with the homeowners (or a majority ofhomeowners) or may be a requirement of your deed of condition.

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07Property Factor Registration Number: PF000763 Financial and ChargingArrangements ContinuedSinking fund bank accounts are separate from the company's operatingaccount and are securely protected against the financial failure of thebusiness. Interest accrued in sinking fund accounts is retained directly in the account. Astatement of the funds held in the development sinking fund account can beexhibited at an annual general meeting (as appropriate) or on request. If a homeowner sells a property, the amount paid into the sinking fund is notreturned. It should, however, be detailed as an asset in the sale of theproperty. The use/spending of sinking funds is controlled by the homeowners.RMG Scotland may recommend the use of sinking funds for a particularproject but cannot enforce such action. InvoicingAll costs, including management fees, are charged in accordance with yourdevelopment schedule. Insurance premiums may vary (see Section 8).Invoices will be sent to the homeowner of the property by secure email or bypostal service. For environmental and cost purposes, the default method ofdelivery is secure email. For those that wish to receive invoices by postalservice, a cost of £3 per quarter (inc VAT) will be applied.When a homeowner sells a property in a factored development, the seller'ssolicitor must confirm the sale date to RMG Scotland, who then must ensurethat all costs are apportioned to the correct homeowner at the correct date. Forexample, for a sale date of 1st July, the departing homeowner is liable for allcosts up to that date, including cleaning, gardening, utility bills etc. As some invoices may not be generated until well after the sale date (forexample, quarterly utility bills), the final invoice, including repayment of float(where applicable), is produced sometime after the date of sale to ensure alloutstanding costs are correctly split. RMG Scotland requires a minimum of 14days' notice of sale from the seller's solicitor. Please note it is the seller'sresponsibility to ensure their solicitor is advised of these requirements and thatRMG Scotland is provided with a forwarding address or email address to allowyour final invoice to be issued correctly.Failure to provide a forwarding address or email address resulting in non-payment of invoices, may result in legal proceedings which may incuradditional charges. An administrative charge is made to the departing homeowner to cover thesignificant internal administration requirements involved in the sales process.This charge will appear on the final invoice following the sale. The charge will be£55.00 +VAT per property. We reserve the right to charge a higher amount if:The sales process is protracted or involves significant additional work. (costdependent on the volume of additional resources required).Charges on a sliding scale will be charged if we are not notified of a salewithin 14 days; the charges to be applied are as follows: Assignment fee – 14-28 days overdue £100.00 +VATAssignment fee – > 28 days overdue £150.00 +VATSales/Apportionment Process and FeesWhen a homeowner sells a property in a factored development, RMGScotland's property sales team liaises with the seller's solicitor to answer anyrelevant questions such as any outstanding debt, presence of sinking funds,pending projects etc.

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08Property Factor Registration Number: PF000763 Financial and ChargingArrangements ContinuedPayment of InvoicesPayments are due within 28 days of the invoice date.Invoices can be paid by any of the following methods:Direct DebitOnline using our customer portal RMG Living at www.rmgliving.co.ukDownloading our app, RMG Living on the Google Play Store & Apple StoreOur Scotland website at www.rmgscotland.comElectronic bank transfer – See the back of the invoice for detailsStanding orderChequeBy telephone to 0345 002 4499If paying by Direct Debit, RMG Scotland will advise the payment amountrequired based on recent average costs. As ongoing costs do fluctuate,homeowners must check their invoice and pay any outstanding balance ontheir account as it falls due. This could be done by making a one-off paymentor amending your Direct Debit. It is the homeowner's responsibility to adjustDirect Debit amounts if charges vary significantly over time. Please beadvised that if your Direct Debit payment is unsuccessful, an administrationfee of £12 + VAT will be applied to your account. Any disputed items on an invoice should be raised with RMG Scotlandproperty factors accounts department within seven days of receipt of theinvoice. Undisputed items on the invoice must still be paid within the 28 daysof receipt of the invoice.RMG Scotland have a specific "client bank account" into which all floats andhomeowner’s payments are made and from which all contractors' invoicesetc., are paid. This account is separate from the company's operating account and issecurely protected against the financial failure of the business. RMG Scotland retain any interest accrued on the client bank account. It alsopays all charges incurred on the account, such as card machine charges,BACS transfers to contractor's accounts etc. For the avoidance of doubt,client account bank charges far exceed the value of interest gained.

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09Property Factor Registration Number: PF000763 ComplaintsIn the first instance, RMG Scotland will aim to resolve all enquiries raised to our Customer Service Centre or front-line members informally. However, should ahomeowner remain dissatisfied and wish to make a formal complaint, our "Complaints Procedure" is available on our website at www.rmgscotland.com orby request to the Customer Service Centre.Our complaints process has two stages, as identified below:Stage Complaint HandlerResponse TimesStage 1 – ResolveAppropriate ManagementTeam Up to 10 working daysStage 2 – ReviewHead of PropertyNorth/Director Up to 10 working daysIf the homeowner remains dissatisfied after the stage 2 response, the Property Factors (Scotland) Act 2011 allows homeowners to make an application to theScottish Government's First-tier Tribunal for Scotland (Housing and Property Chamber) for a determination of whether their factor has failed to carry out theirfactoring duties, or failed to comply with the Code of Conduct.To take a complaint to the First-tier Tribunal for Scotland (Housing and Property Chamber), homeowners must first notify their property factor in writing to outlinethe reasons why they consider the factor has failed to carry out their duties or failed to comply with the Code of Conduct. The property factor must also have refusedto resolve the homeowner's concerns or have unreasonably delayed attempting to resolve them.At the request of the homeowner, and if all attempts to resolve the complaint have failed, RMG Scotland will provide contact details for the First-tier Tribunal forScotland (Housing and Property Chamber) to whom the complaint can be passed to.In dealing with complaints, RMG Scotland staff will, at all times, display a polite and professional approach to the homeowner. Similarly, homeowners who have acomplaint must also display professional conduct at all times. Verbal (or other forms of) abuse to staff will not be tolerated.

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10Property Factor Registration Number: PF000763 InsuranceRMG Scotland will place fully comprehensive buildings insurance cover onthe homeowner's behalf, by means of a common policy via our broker, wheretitle deeds stipulate there is a requirement, or by agreement with thehomeowners. A fully comprehensive buildings insurance policy includesproperty owners' liability cover. Where fully comprehensive buildings insurance cover is not placed by RMGScotland, property owners liability cover will be placed on the homeowner'sbehalf via our broker, as a minimum requirement, to ensure homeowners areprotected in the event of liability claims.Appropriate insurance cover for assets such as lifts and playparks will beplaced on the homeowners behalf via RMG Scotland’s insurance broker. Insurance policy documentation is available for inspection via our customerportal www.rmgliving.co.uk or on request. Please call 0345 002 4499 or emailcustomerservice@rmgscotland.com.Insurance certificates will detail the declared value, the sum insured and anyexcesses that apply. Full policy wording is available on request. Insurance premiums will be apportioned in accordance with title deedstipulations or, where appropriate, utilising the provisions of the Tenement(Scotland) Act 2004. Insurance Claims - In the event of an insurance claim where RMG Scotlandplaces cover on behalf of homeowners, please contact our Customer ServiceTeam on 0345 002 4499 or customerservice@rmgscotland.com Defects Reporting - All considerable defects should be reported to RMGScotland and your developer/builder urgently. Please call 0345 002 4499or email customerservice@rmgscotland.com. Failure to report defectsquickly can result in the insurance provider disputing claims.Insurance Valuations – In the absence of alternative instructions, RMGScotland will arrange reinstatement valuations for insurance purposes, inline with RICS recommendations. Sums insured and associated premiumswill be adjusted accordingly, and homeowners advised.Reinstatement valuations will be undertaken by RICS accreditedsurveying firms. Associated professional fees will be subject to acompetitive tendering exercise. Index-linked increases will apply to declared values reflecting standardinsurers' practice. In order to maintain insurance premiums at the lowest possible level,RMG Scotland do not receive any commissions. It is able to do this bytaking some of the administrative work in-house.RMG Scotland are happy to demonstrate its annual insurance renewalprocess on request.

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11Property Factor Registration Number: PF000763 Declaration of InterestIn the unlikely event that RMG Scotland are involved in a relationship or agreement that is material or conflicts with any work undertaken for thehomeowner. Fair treatment will be ensured at all times.RMG Scotland are part of the Places for People group of companies. There may be properties on your development owned by Places for People or CastleRock Edinvar, who also form part of the Places for People group of companies. If there are properties on your development owned by Places for People or Castle Rock Edinvar, then insurance may be placed through the Places for Peoplegroup. If there are properties on your development owned by Places for People or Castle Rock Edinvar, contractors that are used may be part of the Placesfor People group.We may appoint or instruct contractors to carry out works on your development that are part of the Places for People group of companies. We can confirmthat Places for People Homes and Osterna Ltd are part of the Places for People group. Regulatory Status and AssociationThe business operates as a formally registered Property Factor in Scotland, registration number PF000763.

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12Property Factor Registration Number: PF000763 Termination of AppointmentShould homeowners wish to terminate RMG Scotland's appointment, reference shouldbe made to the property title deeds or deed of conditions. Written evidence to illustratethat competent consultation of all homeowners has occurred must be produced to RMGScotland, along with a signed document verifying the decision of each homeowner.The standard notice period for termination of appointment from either party is threemonths. If termination occurs out with the requirements of the deed of conditions, financialpenalties may apply. Once all bills pertaining to the development have been received and processed (normallywithin three months), a final invoice will be produced for each homeowner. Any floatrepayment due will be included as a credit on the final invoice, assuming that allindividual debts have been cleared.Any outstanding "development" debt will be distributed, if the property title deeds allow,as a common charge. Cancellation of longer-term contracts/premiums may incur provider penalty charges.Where practicable, contracts will be transferred into the name of the incoming propertyfactor.RMG Scotland reserve the right to withdraw services, with immediate effect, in the eventthat homeowners prevent the progress of work required to ensure the common areas ofthe property are compliant in respect of Health & Safety.

Written Statement of Services V2

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