Explanatory note

This Order provides for the procedure by and manner in which compensation for loss or expense may be claimed by any person, including an owner of land or sporting interests, under section 89 of the Land Reform (Scotland) Act (“the Act”). Such compensation is payable where loss or expense has been incurred (a) in complying with the requirements of the Act following the making of an application to purchase by the community body; (b) as a result of the withdrawal by the crofting community body of its confirmation of intention to proceed with the purchase, or its failure otherwise to complete the purchase after confirming its intention to do so; or (c) as a result of the failure of the crofting community body which made the application to complete the purchase. In these cases the compensation is payable by the crofting community body (regulation 2).

Where loss or expense has been incurred as a result of an application under section 73 of the Act being refused compensation for such loss or expense is payable by the Scottish Ministers (article 4).

Articles 3 and 4 provide for the time limits within which a claim for compensation must be made, and article 5 requires a statement detailing the head of claim in section 89(1) under which the loss or expense falls, and that losses and expenses are fully vouched. Article 6 provides that if compensation is not agreed within 60 days from the date of submission of the claim either party may refer the claim to the Land Court for resolution.