Land Reform (Scotland) Act 2025

Schedule 3 (1) In this schedule, unless the context otherwise requires— - “claim” means a claim for a type of compensation to which this procedure applies, - “claimant” means the person making a claim for compensation, - “Commissioner” means the Tenant Farming Commissioner, - “holding” means the land comprised in the lease (or such part of that land as is relevant for the purposes of the claim), - “relevant date” means— the date on which the event giving rise to the entitlement to compensation occurs (for example, the date on which the tenancy terminates), or such other date as may be specified in the regulations applying the standard claim procedure to the type of compensation, - “respondent” means the person who is (or may be) liable to pay compensation, - “valuer” means a person appointed under paragraph 3(2), 4(2) or 6(5)(b) or, as the case may be, by agreement between the claimant and the respondent. (2) (1) A claimant must give notification of a claim to the respondent not less than 9 months before the relevant date. (2) The notice of claim must— (a) specify what type (or types) of compensation is being claimed, (b) describe the holding including, in particular, its name, address and boundaries, (c) provide details of the tenancy including, in particular— (i) the landlord and tenant, (ii) the term date, (iii) the current rent, (iv) the date on which the rent could next be reviewed, (d) if relevant to the claim, include details of— (i) any improvements carried out by the tenant for which compensation is or may be payable by virtue of section 34 of the 1991 Act or, as the case may be, section 45 of this Act, and (ii) any non-agricultural use (see Part 3) permitted under sections 40 to 42 of this Act, (e) nominate a person who appears to the claimant to meet the requirements to be a valuer mentioned in paragraph 5, and (f) contain any other information specified by the regulations which apply the standard claim procedure to the type of compensation being claimed. (3) A failure by a claimant to give notice to the respondent in accordance with this paragraph does not extinguish the right of the claimant to a relevant type of compensation provided— (a) the claimant has a reasonable excuse for the failure, and (b) the claimant remedied the failure as soon as reasonably practicable. (3) (1) If the respondent objects to the person nominated as valuer in the notice of claim, the respondent must, within the period of 14 days beginning with the day on which the respondent is given the notice— (a) give the claimant notice of the objection, (b) provide a copy of the notice of claim and the notice of objection to the Commissioner, and (c) request that the Commissioner appoint a person as valuer under paragraph 4. (2) Where— (a) the claimant is not given a notice of objection under sub-paragraph (1), or (b) any other requirement of that sub-paragraph is not complied with, the claimant may appoint the nominated person as valuer. (3) Sub-paragraph (2) does not apply where the claimant and the respondent agree to appoint a different person as valuer. (4) (1) This paragraph applies where the Commissioner receives a request to appoint a valuer. (2) The Commissioner must, within the period of 28 days beginning with the date on which notice of the request is given, appoint a person, who appears to the Commissioner to meet the requirements mentioned in paragraph 5, to— (a) carry out the assessment mentioned in paragraph 8(1), and (b) calculate the amount to be payable by the respondent to the claimant as compensation. (3) The Commissioner must give notice to the claimant and the respondent of the name and address of the person appointed under sub-paragraph (2). (5) The requirements referred to in paragraph 2(2)(e) and 4(2) are that the person— (a) is independent of the claimant and the respondent, and (b) possesses qualifications, knowledge and experience suitable for assessing the— (i) value of agricultural land, both with vacant possession and where subject to agricultural holdings, and (ii) compensation that may be payable to tenants and landlords of such holdings. (6) (1) This paragraph applies where the claimant or the respondent objects to the person appointed as valuer by the Commissioner on one or more of the grounds mentioned in sub-paragraph (2). (2) The grounds are that the person— (a) is not independent of the respondent or, as the case may be, the claimant, or (b) does not possess the qualifications, knowledge and experience mentioned in paragraph 5(b). (3) The claimant or, as the case may be, the respondent may apply to the Land Court to appoint a person as the valuer in place of the person appointed by the Commissioner. (4) An application under sub-paragraph (3)— (a) must— (i) be made before the expiry of the period of 14 days beginning with the date of the notice under paragraph 4(3), and (ii) state the ground of objection to the person appointed by the Commissioner, and (b) may propose a person to be appointed as the valuer in place of that person. (5) The Land Court may, on an application under sub-paragraph (3)— (a) reject the objection, or (b) appoint a person as the valuer (whether a person proposed in the application or not). (6) The decision of the Land Court on an application under sub-paragraph (3) is final. (7) Unless otherwise ordered by the Land Court, the claimant and respondent are each liable for half of the valuer’s expenses. (8) (1) The valuer is to assess the value of the claim as at the relevant date. (2) In carrying out an assessment, the valuer is to take into account, have regard to or, as the case may be, disregard— (a) any matter which is relevant to the type of compensation being claimed that is set out in an enactment conferring the right to compensation, and (b) any matter specified in the regulations applying the standard claim procedure to the type of compensation being claimed. (3) The valuer is— (a) to invite the claimant and the respondent to make written representations about the value of the claim and any relevant matters, and (b) to have regard to any such representations. (9) (1) The valuer must, not less than 5 months before the relevant date— (a) prepare a report on the assessment of value of the claim (“the preliminary report”), and (b) send a copy of the preliminary report to the claimant and the respondent. (2) The preliminary report must include— (a) the valuer’s assessment of the value of the claim, (b) the matters that the valuer took into account, had regard to or, as the case may be, disregarded when assessing the value of the claim, (c) details of how the valuer has arrived at the value of the claim, and (d) details of any part of the assessment which the valuer considers may change between the date of the preliminary report and the payment date and an explanation as to why the valuer considers this may change. (3) The report may also contain or be accompanied by any other information that the valuer considers appropriate. (10) (1) The valuer must, not less than 3 months before the relevant date— (a) prepare an updated report on the assessment of value of the claim (“the final report”), and (b) send a copy of the final report to the claimant, the respondent and the Commissioner. (2) The final report must include— (a) the valuer’s assessment of the value of the claim, (b) the matters that the valuer took into account, had regard to or, as the case may be, disregarded when assessing the value of the claim, (c) details of how the valuer has arrived at the value of the claim, and (d) details of any part of the assessment which the valuer has adjusted since the preparation of the preliminary report and an explanation of why that adjustment as been made. (3) The report may also contain or be accompanied by any other information that the valuer considers appropriate. (11) (1) The valuer may, for the purposes of this schedule— (a) at reasonable times and having given reasonable notice, enter onto and inspect— (i) the holding, and (ii) any other land which is owned or occupied by the claimant or respondent and which is relevant to the assessment, and (b) make any reasonable request of the claimant and respondent (with which they must comply). (2) In the event that the claimant or, as the case may be, respondent does not provide entry to the valuer, respond to a request of the valuer or otherwise seeks to obstruct or delay the valuation, the valuer may— (a) apply to the Land Court for an order requiring the relevant party to comply, and (b) recover the cost of doing so from the party. (3) A valuer is not to be held to be in breach of a requirement of this schedule where such breach arises as a result of the actions of the claimant or the respondent. (12) (1) The amount payable by the respondent to the claimant is the assessed value of the claim and any amount payable in respect of interest under section 59C. (2) Payment is to be made not later than— (a) two months after the relevant date, or (b) in a case where there is an appeal to the Lands Tribunal under paragraph 13, such date as may be specified by the Lands Tribunal. (3) For the purposes of this paragraph, “the assessed value of the claim” is the value of the claim— (a) as assessed by the valuer under paragraph 10, or (b) in a case where a matter has been appealed to the Lands Tribunal, the value as determined by the Lands Tribunal (which includes a decision upholding the valuer’s assessment). (13) (1) The claimant or the respondent may appeal to the Lands Tribunal in respect of anything contained in the final report. (2) An appeal under this section must— (a) state the grounds on which it is being made, and (b) be lodged before the expiry of the period of 21 days beginning with the date the final report was sent. (3) The Lands Tribunal may— (a) reassess the value mentioned in paragraph 8(1) (and any matter affecting the value), and (b) determine the amount to be payable by the respondent to the claimant in respect of the claim. (4) The valuer whose assessment is appealed against may be a witness in the appeal proceedings. (5) In the appeal proceedings, in addition to the respondent and the claimant, the following persons are entitled to be heard— (a) where the landlord is a creditor in a standard security, the owner of the land, (b) where the landlord is the owner of the land, any creditor in a standard security over the land or any part of it. (6) The Lands Tribunal is to give written reasons for its decision on an appeal under this section. (7) The decision of the Lands Tribunal in an appeal under this section is final. (14) Where, in an appeal before the Lands Tribunal under paragraph 13, an issue of law arises which may competently be determined by the Land Court by virtue of the 1991 Act or this Act, the Tribunal is to refer the issue to the Land Court for determination unless the Tribunal considers that it is not appropriate to do so.

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34

• (1) The Agricultural Holdings (Scotland) Act 2003 is modified as follows.

• (2) After section 59B (as inserted by section 33 of this Act) insert—

(59C) (1) This section applies in respect of any amount of a relevant type of compensation which has not been paid by or on the date on which the compensation is due to be paid (whether that date is specified or determined under the 1991 Act, this Act or otherwise). (2) Interest is payable, at the rate mentioned in subsection (3) on any amount of the compensation which remains unpaid after the due date (calculated on a daily basis over the period from the due date to the date of payment). (3) The rate is the rate equivalent to an annual rate of 1.5% above the Bank of England base rate. (4) In subsection (3), “Bank of England base rate” means— (a) the percentage rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or (b) where an order under section 19 of the Bank of England Act 1998 is in force, any equivalent percentage rate determined by the Treasury under that section. (5) For the purposes of this section, “relevant type of compensation” has the same meaning as that given in section 59B.

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Rent review

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• (1) The Agricultural Holdings (Scotland) Act 1991 Act is modified as follows.

• (2) In schedule 1A (rent review) (as inserted by section 101 of the Land Reform (Scotland) Act 2016)—

• (a) in paragraph 7, for sub-paragraph (4) substitute—

(4) In determining the fair rent for the holding, the Land Court must have regard to— (a) the productive capacity of the holding, (b) the open market rent of any fixed equipment provided by the landlord that is used for a purpose that is not an agricultural purpose, (c) the open market rent of any land forming part of the holding that is used for a purpose that is not an agricultural purpose, (d) the rent payable on comparable holdings, (e) the prevailing economic conditions in the sectors of agriculture relevant to the holding. (5) But in determining the fair rent for the holding, the Land Court is to take no account of— (a) the amount by which the rental value of the holding has been increased by improvements to the extent determined in accordance with sub-paragraph (8), (b) any reduction in the rental value of the holding caused by a matter of a kind mentioned in sub-paragraph (11), (c) any effect on the rent of the tenant being in occupation of the holding. (6) For the purposes of sub-paragraph (4)(b) and (c), the “open market rent” means the rent at which any fixed equipment or land used for a purpose that is not an agricultural purpose might reasonably be expected to be let on the open market by a willing landlord to a willing tenant. (7) For the purpose of sub-paragraph (4)(d), the Land Court is— (a) so far as possible, to have regard to information about— (i) the rent previously offered or agreed in respect of the holding or another holding, (ii) the rent fixed by the Land Court for the holding or another holding, (b) to take account of a distortion in the market caused by the lack of available lets only for the purposes of— (i) identifying if the amount of rent offered or agreed for a holding is in excess of what might otherwise be considered the fair rent for the holding, and (ii) discounting the amount paid that is in excess of what might otherwise be considered fair. (8) The amount of increase in the rental value of the holding caused by an improvement that is to be disregarded in accordance with sub-paragraph (5)(a) is the proportional amount of the increase corresponding to— (a) the proportion of the cost of carrying out the improvement that was met at the tenant’s expense (see sub-paragraph (9)), and (b) the proportion of the cost of carrying out the improvement— (i) that was met at the landlord’s expense, and (ii) in respect of which the landlord has received, or will receive, a grant. (9) For the purposes of sub-paragraph (8)(a)— (a) an improvement is to be regarded as having been carried out at the tenant’s expense (wholly or partly as the case may) regardless of whether the tenant has been, or will be, reimbursed for the expense incurred by a grant, (b) an improvement is not to be regarded as having been carried out at the tenant’s expense (wholly or partly)— (i) if the tenant has, in respect of the expense incurred in carrying out the improvement, been made or given an equivalent allowance or benefit by the landlord, (ii) if the improvement was carried out under an obligation imposed on the tenant by the terms of the lease. (10) For the purposes of sub-paragraph (8)(a), the continuous adoption by the tenant of a standard or system of farming more beneficial to the holding— (a) than the standard or system required by the lease, or (b) where no standard or system of farming is required by the lease, than the standard or system of farming normally practised on comparable holdings, is to be considered an improvement carried out wholly at the tenant’s expense. (11) The matters referred to in sub-paragraph (5)(b) are— (a) the dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant, (b) the use of the land or part of the land, or changes to the land, for a purpose that is not an agricultural purpose, or (c) the carrying out of conservation activities on the land.

,

• (b) for paragraph 9 substitute—

(9) (1) The Scottish Ministers may by regulations make further provision for the purposes of paragraph 7(4) and (5). (2) Before laying any draft Scottish statutory instrument containing regulations under this paragraph before the Scottish Parliament, the Scottish Ministers must consult such persons as they consider appropriate. (3) Regulations under this paragraph are subject to the affirmative procedure.

,

• (c) paragraphs 10 to 12 are repealed,

• (d) in paragraph 13, the definition of “surplus residential accommodation” is repealed.

36

• (1) The Agricultural Holdings (Scotland) Act 2003 is modified as follows.

• (2) For section 9B (determination of rent) (as inserted by section 102 of the Land Reform (Scotland) Act 2016) substitute—

(9B) (1) On review, the rent payable is the fair rent for the tenancy taking account of all the circumstances. (2) In determining the fair rent for the tenancy, regard is to be had to— (a) the productive capacity of the land comprised in the lease, (b) the open market rent of any fixed equipment provided by the landlord that is used for a purpose that is not an agricultural purpose, (c) the open market rent of any land comprised in the lease that is used for a purpose that is not an agricultural purpose, (d) the rent payable for comparable tenancies, (e) the prevailing economic conditions in the sectors of agriculture relevant to the land comprised in the lease. (3) But in determining the fair rent for the tenancy, no account is to be taken of— (a) the amount by which the rental value of the land has been increased by improvements to the extent determined in accordance with subsection (6), (b) any reduction in the rental value of the land caused by a matter of a kind mentioned in subsection (9), (c) any effect on the rent of the tenant being in occupation of the holding. (4) For the purposes of subsection (2)(b) and (c), the “open market rent” means the rent at which any fixed equipment or land used for a purpose that is not an agricultural purpose might reasonably be expected to be let on the open market by a willing landlord to a willing tenant. (5) For the purpose of subsection (2)(d)— (a) so far as possible, regard is to be had to information about— (i) the rent previously offered or agreed in respect of the tenancy or another tenancy, (ii) the rent fixed by the Land Court for the tenancy or another tenancy, (b) account is to be taken of a distortion in the market caused by the lack of available lets only for the purposes of— (i) identifying if the amount of rent offered or agreed for a tenancy is in excess of what might otherwise be considered a fair rent for the tenancy, and (ii) discounting the amount paid that is in excess of what might otherwise be considered fair. (6) The amount of increase in the rental value of the land caused by an improvement that is to be disregarded in accordance with subsection (3)(a) is the proportional amount of the increase corresponding to— (a) the proportion of the cost of carrying out the improvement that was met at the tenant’s expense (see subsection (7)), and (b) the proportion of the cost of carrying out the improvement— (i) that was met at the landlord’s expense, and (ii) in respect of which the landlord has received, or will receive, a grant. (7) For the purposes of subsection (6)— (a) an improvement is to be regarded as having been carried out at the tenant’s expense (wholly or partly as the case may) regardless of whether the tenant has been, or will be, reimbursed for the expense incurred by a grant, (b) an improvement is not to be regarded as having been carried out at the tenant’s expense (wholly or partly)— (i) if the tenant has, in respect of the expense incurred in carrying out the improvement, been made or given an equivalent allowance or benefit by the landlord, (ii) if the improvement was carried out under an obligation imposed on the tenant by the terms of the lease. (8) For the purposes of subsection (6)(a), the continuous adoption by the tenant of a standard or system of farming more beneficial to the land comprised in the lease— (a) than the standard or system required by the lease, or (b) where no standard or system of farming is required by the lease, than the standard or system of farming normally practised on comparable tenancies, is to be considered an improvement carried out wholly at the tenant’s expense. (9) The matters referred in subsection (3)(b) to are— (a) the dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant, (b) the use of the land or part of the land, or changes to the land, for a purpose that is not an agricultural purpose, or (c) the carrying out of conservation activities on the land. (10) The rent determined in accordance with this section is to take effect from the rent agreement date. (9BA) (1) The Scottish Ministers may by regulations make further provision for the purposes of section 9B(2) and (3). (2) Before laying any draft Scottish statutory instrument containing regulations under this section before the Scottish Parliament, the Scottish Ministers must consult such persons as they consider appropriate. (3) Regulations under this paragraph are subject to the affirmative procedure.

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• (3) Section 9C is repealed.

37

• (1) The Agricultural Holdings (Scotland) Act 2003 is modified as follows.

• (2) In section 9 (review of rent under limited duration tenancies, modern limited duration tenancies and repairing tenancies) (as amended by section 102 of the Land Reform (Scotland) Act 2016)—

• (a) in subsection (1A), at the beginning insert “Except where subsection (1B) applies,”,

• (b) after subsection (1A) insert—

(1B) This subsection applies where a lease constituting a repairing tenancy is within its repairing period.

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Rules of good estate management and husbandry

38

• (1) The Agriculture (Scotland) Act 1948 is modified as follows.

• (2) In schedule 5 (rules of good estate management)—

• (a) in paragraph 1, after “efficient” insert “, sustainable and regenerative”,

• (b) in paragraph 2—

• (i) the word “regular” is repealed,

• (ii) for “eradication” substitute “control”,

• (iii) the words “so far as is reasonably practicable” are repealed,

• (iv) after “efficient” insert “, sustainable and regenerative”.

39

• (1) The Agriculture (Scotland) Act 1948 is modified by subsection (2).

• (2) In schedule 6 (rules of good husbandry)—

• (a) in paragraph 1, after “efficient” insert “, sustainable and regenerative”,

• (b) in paragraph 2—

• (i) after paragraph (d) insert—

(da) the health and welfare of livestock,

,

• (ii) in paragraph (e)(ii), for “use of lug, horn or other stock marks” substitute “means of identifying animals”,

• (iii) in paragraph (e)(v), the word “regular” is repealed.

• (3) The Agricultural Holdings (Scotland) Act 1991 is modified by subsection (4).

• (4) In section 85 (interpretation), after subsection (2B) insert—

(2C) For the purpose of subsection (2A), but without prejudice to its generality, the Scottish Ministers may prescribe activities or descriptions of activities which are to be treated as a conservation activities.

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Succession in relation to 1991 Act tenancies

40

• (1) The Agricultural Holdings (Scotland) Act 1991 is modified as follows.

• (2) In section 11 (bequest of lease)—

• (a) in subsection (1A), for paragraphs (b) to (n) substitute—

(aa) a spouse or civil partner of— (i) a tenant’s descendant, (ii) a tenant’s sibling, (ab) in relation to a tenant’s spouse or civil partner— (i) that person’s sibling, (ii) a spouse or civil partner of such a sibling, (iii) a descendant of such a sibling.

,

• (b) after subsection (1A) insert—

(1B) For the purpose of subsection (1A)— (a) a reference to a spouse or civil partner of a person (“person A”) includes, where person A has died, a reference to a person who was the spouse or civil partner of person A immediately prior to person A’s death, (b) two people are siblings if they have at least one parent in common, (c) a step-child or, as the case may be, step-sibling of a person is to be treated as being the same as a child or, as the case may be, sibling of a person (and subsection (1A)(a) is to be read as if the rules of intestacy applied accordingly).

,

• (c) after subsection (2) insert—

(2A) A notice under subsection (2) must specify the legatee’s relationship to the deceased tenant.

,

• (d) in subsection (3), for “date of the death of the deceased tenant” substitute “date of the deceased tenant’s death”.

• (3) In section 12 (transfer of lease on intestacy), after subsection (1) insert—

(1A) A notice under subsection (1) must specify the acquirer’s relationship to the deceased tenant.

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41

• (1) The Agricultural Holdings (Scotland) Act 1991 is modified as follows.

• (2) In section 12A (landlord’s objection to legatee or acquirer on intestacy: near relative)—

• (a) in subsection (2), for “1 month after” substitute “the period of 28 days beginning with the date on which”,

• (b) in subsection (4)(a), for “of the notice” substitute “on which the notice is given”,

• (c) in subsection (5), for “1 month after” substitute “the period of 28 days beginning with the date on which”,

• (d) in subsection (7), for “, as from the date of the death of the deceased tenant.” substitute

— (a) in the case of the legatee, as from the date of the deceased tenant’s death, (b) in the case of the acquirer, as from the date on which the interest in the lease was transferred under section 16 of the Succession (Scotland) Act 1964.

,

• (e) for subsection (8), substitute—

(8) Where the landlord does not apply to the Land Court under subsection (5), the deceased tenant’s lease of the holding is to be binding on the landlord and the legatee or, as the case may be, acquirer, as landlord and tenant respectively (a) in the case of the legatee, as from the date of the deceased tenant’s death, (b) in the case of the acquirer, as from the date on which the interest in the lease was transferred under section 16 of the Succession (Scotland) Act 1964.

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• (3) In section 12B (landlord’s objection to legatee or acquirer on intestacy: other persons)—

• (a) for subsection (2) substitute—

(2) The landlord may, within the period of 28 days beginning with the date on which notice is given under section 11(2) or 12(1), give to the person a counter-notice— (a) intimating that the landlord objects to the person’s succession to the tenancy, (b) setting out the landlord’s grounds for objecting, and (c) either— (i) in the case of a legatee, declaring the bequest to be null and void, or (ii) in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the landlord specifies, being a term at least 1 year but no more than 2 years from the date on which the counter-notice is given.

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• (b) in subsection (3), for “the person may, within 1 month after” substitute “the person to whom it is given may, within the period of 28 days beginning with the date on which”,

• (c) after subsection (5) insert—

(6) Where the Land Court quashes a counter-notice under subsection (4), the deceased tenant’s lease of the holding is, accordingly, to be binding on the landlord and on the legatee or, as the case may be, acquirer, as landlord and tenant respectively— (a) in the case of the legatee, as from the date of the deceased tenant’s death, (b) in the case of the acquirer, as from the date on which it was transferred under section 16 of the Succession (Scotland) Act 1964.

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42

• (1) The Agricultural Holdings (Scotland) Act 1991 is modified as follows.

• (2) In section 12C (landlord’s objection to legatee or acquirer on intestacy: supplementary provision)—

• (a) for subsection (1) substitute—

(1) From the date of the deceased tenant’s death until the conclusion of any proceedings under section 12A or 12B, the legatee or, as the case may be, acquirer is entitled to possession of the holding in question.

,

• (b) for subsection (2) substitute—

(2) But subsection (1) does not apply— (a) where the executor in whom the deceased tenant’s interest in the lease is vested under section 14 of the Succession (Scotland) Act 1964 objects, or (b) where, on the application of the landlord, the Land Court directs otherwise on cause shown.

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Succession in relation to 2003 Act tenancies

43

• (1) The Agricultural Holdings (Scotland) Act 2003 is modified as follows.

• (2) In section 21 (bequest of lease)—

• (a) in subsection (1A), for paragraphs (b) to (n) substitute—

(aa) a spouse or civil partner of— (i) a tenant’s descendant, (ii) a tenant’s sibling, (ab) in relation to a tenant’s spouse or civil partner— (i) that person’s sibling, (ii) a spouse or civil partner of such a sibling, (iii) a descendant of such a sibling.

,

• (b) after that subsection insert—

(1B) For the purpose of subsection (1A)— (a) a reference to a spouse or civil partner of a person (“person A”) includes, where person A has died, a reference to a person who was the spouse or civil partner of person A immediately prior to person A’s death, (b) two people are siblings if they have at least one parent in common, (c) a step-child or, as the case may be, step-sibling of a person is to be treated as being the same as a child or, as the case may be, sibling of a person (and subsection (1A) is to be read as if the rules of intestacy applied accordingly).

,

• (c) in subsection (2), in the opening words, for “11(2)” substitute “11(2), (2A)”.

• (3) In section 22 (right of landlord to object to acquirer of tenancy)—

• (a) after subsection (1) insert—

(1A) A notice under subsection (1) must specify the relationship to the deceased tenant of the person to whom the lease is transferred.

,

• (b) in subsection (3)(a)(ii), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date on which the notice is given”.

Part 3 — Final provisions

44

• (1) The Scottish Ministers may by regulations make any incidental, supplementary, consequential, transitional, transitory or saving provision they consider appropriate for the purposes of, or in connection with, or for giving full effect to this Act or any provision made under it.

• (2) Regulations under this section may modify any enactment (including this Act).

45

• (1) A power to make regulations conferred by this Act includes the power to make different provision for different purposes and areas.

• (2) Regulations under the following provisions are subject to the affirmative procedure: sections 23(1) (see also sections 23(3) and 46) and 24 (see also sections 24(3) and 46) and, in schedule 2, paragraphs 4(3), 17(5), 19(8)(a), 53(4), 62(5), 63(7), 64(9), 69(8) and 72(1).

• (3) Regulations under the following provisions are subject to the negative procedure: section 11(3) and, in schedule 2, paragraphs 15(3)(a) and (c), 17(4)(b), 19(8)(b), 49(3), 50(6), 58(2) and (6) and 61(4)(b).

• (4) Regulations under section 44—

• (a) are subject to the affirmative procedure if they add to, replace or omit any part of the text of an Act, but

• (b) otherwise, are subject to the negative procedure.

46

• (1) The Scottish Ministers may not lay before the Scottish Parliament for approval by resolution a draft Scottish statutory instrument containing regulations in relation to which this section applies—

• (a) until they have consulted on proposals for the regulations in accordance with subsection (3) for the 60 day period described by subsection (4), and

• (b) without laying before the Parliament, at the same time as the draft instrument, an explanatory document fulfilling the requirements set out in subsection (6).

• (2) For the purposes of subsection (1)(a), proposals for regulations must take the form of—

• (a) a draft of the regulations, and

• (b) an explanatory document containing reasons for the draft regulations’ content.

• (3) To consult on proposals for regulations, the Scottish Ministers must—

• (a) lay the proposals before the Scottish Parliament, and

• (b) send a copy of them to any other person they consider it appropriate to consult.

• (4) The 60 day period referred to in subsection (1)(a) begins with the day that the Scottish Ministers lay the proposals before the Parliament in accordance with subsection (3)(a).

• (5) In calculating the 60 day period, no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.

• (6) The requirements for the explanatory document referred to in subsection (1)(b) are that the document contain—

• (a) reasons for the provisions contained in the draft instrument alongside which the document is laid before the Parliament,

• (b) details of what was done to consult in relation to the proposals for the regulations,

• (c) details of the representations received in relation to the proposals for the regulations during the 60 day period described by subsection (4),

• (d) details of what changes (if any) were made as a result of those representations in turning the draft of the regulations that comprised the proposals into the regulations contained in the draft instrument.

• (7) In complying with subsection (6)(c), the Scottish Ministers must not disclose—

• (a) representations received from a person who has not consented to their being disclosed,

• (b) information about a person (“person A”) contained in representations received from another person if and to the extent that—

• (i) it appears to the Scottish Ministers that disclosure of the information could adversely affect the interests of person A, and

• (ii) the Scottish Ministers have been unable to obtain person A’s consent to the disclosure of the information.

47

• (1) This Part, and section 11, come into force on the day after Royal Assent.

• (2) The other provisions of this Act come into force on such day as the Scottish Ministers may by regulations appoint.

• (3) Regulations under subsection (2) may include transitional, transitory or saving provision.

48

The short title of this Act is the Land Reform (Scotland) Act 2025.

Schedule 1

The following is the text referred to in sections 1(6) and 6(5)—

Schedule 2

Part 1 — Small landholdings and small landholders

1

• (1) A small landholding—

• (a) is the land which is comprised in a lease to which this schedule applies, and

• (b) includes any right held or to be held by the tenant under the lease alone or in common with others in pasture land or common grazings.

• (2) This schedule applies to a lease if—

• (a) the lease—

• (i) is entered into after this paragraph comes into force,

• (ii) is not a sub-lease, and

• (iii) includes a term that the lease is one to which this schedule applies,

• (b) immediately before the coming into force of this paragraph, the tenant under the lease is a landholder for the purposes of the Small Landholders (Scotland) Acts 1886 to 1931, or

• (c) the lease is one to which this schedule applies by virtue of section 32(11) of the Small Landholders (Scotland) Act 1911 (provisions as to statutory small tenants) or section 14 of the Small Landholders and Agricultural Holdings (Scotland) Act 1931 (option to statutory small tenant to become landholder).

• (3) Where the small landholding is subject to a lease mentioned in sub-paragraph (2)(b), the land comprised in the lease on the day on which this paragraph comes into force includes any site which, immediately before that day, is deemed to be part of the holding to which the lease applies under section 26(1) of the Small Landholders (Scotland) Act 1911.

2

• (1) A small landholder is the tenant under a lease of a small landholding.

• (2) A small landholder must be an individual.

3

• (1) A small landholding may not comprise or include the following—

• (a) land which is situated in any of the crofting counties,

• (b) land which is not—

• (i) agricultural or pastoral land, or

• (ii) the site of a dwelling-house, or any building or other structure pertaining to the dwelling-house,

• (c) garden ground pertaining to a dwelling-house, the site of which is not comprised in the holding,

• (d) land which is the site of, forms access to or surrounds an ancient monument or other object of historical or archaeological interest,

• (e) land which is or forms part of an allotment under Part 9 of the Community Empowerment (Scotland) Act 2015.

• (2) A small landholding—

• (a) may not be comprised only of land mentioned in sub-paragraph (1)(b)(ii),

• (b) may include such land whether or not it is contiguous to the other land of which the holding is comprised.

• (3) Nothing in sub-paragraph (1)(b) prevents land comprising or included in a small landholding ceasing to be agricultural or pastoral land in accordance with a diversification agreement or an authorised diversification proposal.

• (4) In this paragraph—

• “authorised diversification proposal” is to be construed in accordance with paragraph 26(3),

• “crofting counties” is to be construed in accordance with section 61 of the Crofters (Scotland) Act 1993,

• “diversification agreement” means an agreement under paragraph 16(2).

4

• (1) A small landholding must not exceed 20 hectares, unless sub-paragraph (2) applies.

• (2) This sub-paragraph applies where—

• (a) the lease of the holding is one mentioned in paragraph 1(2)(b), and

• (b) the area of the holding immediately before this paragraph comes into force exceeds 20 hectares.

• (3) The Scottish Ministers may by regulations modify this paragraph so as to—

• (a) substitute a different area for the area for the time being mentioned in sub-paragraph (1),

• (b) provide for land which is to be left out of account in calculating the size of a holding for the purposes of this paragraph.

• (4) Where sub-paragraph (2) applies, the lease may not be varied so as to add to the subjects of the lease unless, following the variation, the area of the holding would not exceed the area for the time being mentioned in sub-paragraph (1).

5

• (1) A lease of a small landholding—

• (a) subsists until it is terminated in accordance with this schedule, and

• (b) may not be terminated other than in accordance with this schedule.

• (2) Any term (whether express or implied) of a lease of a small landholding which provides for—

• (a) an ish, or

• (b) the lease to end other than in accordance with this schedule,

is of no effect.

• (3) The absence of an ish does not affect the validity of a lease of small landholding.

Part 2 — Rent

6

The rent payable by a small landholder to a landlord in respect of a small landholding is—

• (a) the rent agreed between the parties (either on entering into the lease or on a subsequent variation of it), or

• (b) the rent fixed by the Land Court.

7

• (1) A small landholder and a landlord of a small landholding may, by written agreement, alter the rent payable in respect of the holding.

• (2) Any agreement under sub-paragraph (1) must specify the period during which the altered rent is payable.

• (3) On the expiry of the period specified in an agreement by virtue of sub-paragraph (2), the rent specified in the agreement as payable immediately before the expiry of the period remains the rent payable unless and until—

• (a) a new agreement entered into under sub-paragraph (1) takes effect, or

• (b) an order of the Land Court fixing the rent under paragraph 8 or 9 takes effect.

• (4) Nothing in this paragraph prevents a new agreement under sub-paragraph (1) from taking effect prior to the expiry of the period specified in an agreement by virtue of sub-paragraph (2).

8

• (1) On the application of a small landholder or a landlord of a small landholding, the Land Court may, where either condition A or condition B is met, make an order fixing the rent payable by the landholder in respect of the holding.

• (2) Condition A is that—

• (a) any previous order of the Land Court fixing the rent payable by the landholder in respect of the holding took effect at least 7 years prior to the date on which the new order will take effect,

• (b) on the date on which the order will take effect, any period specified in writing in the lease (including in any variation of it) as the period for which the rent is fixed will have elapsed, and

• (c) the period of 7 years beginning with the date on which rent first became payable under the lease of the holding will have elapsed on the date on which the order will take effect.

• (3) Condition B is that the landholder—

• (a) intends to use the land comprising the holding, or any part of it, in accordance with a diversification proposal, or diversification agreement, agreed with the landlord under Part 4, or

• (b) has used the land or any part of it for a purpose other than cultivation without the question of altering the rent to take account of that use being addressed.

• (4) For the purpose of sub-paragraph (3)(b), the question of altering the rent to take account of a use is addressed where—

• (a) there is an agreement under paragraph 7 altering the rent, or an order of the Land Court fixing the rent, which takes account of the use, or

• (b) the landlord has agreed that the rent should remain unchanged in respect of the use.

• (5) The rent that is to be fixed under sub-paragraph (1) in respect of the holding is the amount that the Land Court, taking account of all the circumstances, considers is the fair rent for the holding.

• (6) In determining the fair rent for the holding, the Land Court—

• (a) may not increase the rent in respect of any increase in the value of the holding resulting from—

• (i) any permanent improvements to the extent that the landholder would be entitled to compensation in respect of those improvements upon renouncing the tenancy of the holding,

• (ii) any unexhausted improvements to the extent that, if they were permanent improvements, the landholder would be entitled as mentioned to compensation in respect of them,

• (b) may not decrease the rent in respect of any reduction in the value of the holding resulting from the use of any of the land, or changes to the land, for a purpose other than cultivation of the land by the landholder or the landholder’s predecessor.

• (7) Before making an order fixing the rent under sub-paragraph (1), the Land Court—

• (a) must invite the landholder and the landlord to make representations,

• (b) may—

• (i) visit the holding to which the application relates,

• (ii) take advice from assessors or valuers.

• (8) An order fixing the rent under sub-paragraph (1) takes effect as from the first term date (being the date of Whitsunday or Martinmas) falling after the date on which the order is made.

9

• (1) This paragraph applies where—

• (a) the Land Court either—

• (i) approves a diversification proposal in respect of a small landholding under paragraph 23(6)(a)(i), or

• (ii) removes, under paragraph 25(6)(a), a condition imposed by a landlord in respect of a diversification proposal, and

• (b) an application is made, in those proceedings, for the Land Court to fix the rent payable by the landholder in respect of the holding.

• (2) The Land Court may make an order fixing the rent payable by the small landholder in respect of the holding.

• (3) Sub-paragraphs (5) to (8) of paragraph 8 apply to an order under sub-paragraph (2) as they apply to an order under paragraph 8(1).

10

• (1) The Land Court may, on the application of a small landholder to whom an application under paragraph 8(1) or 9(1)(b) (a “rent review application”) relates, make an order sisting any proceedings for the removal of the landholder for non-payment of rent until the rent review application is determined.

• (2) An order under sub-paragraph (1) may specify conditions (about the payment of rent or otherwise) to which the order is subject.

• (3) Where an application is made under sub-paragraph (1), the Land Court must, in determining the rent review application, also consider whether to make an order (either or both)—

• (a) imposing a payment plan in respect of the relevant rent arrears,

• (b) reducing the relevant rent arrears.

• (4) In considering whether to make an order by virtue of sub-paragraph (3), the Land Court must have regard to—

• (a) the anticipated level of the relevant rent arrears,

• (b) the circumstances which have led to rent arrears accruing.

• (5) Where the landholder has paid some or all of the rent arrears accruing in respect of the small landholding, the Land Court may—

• (a) make an order by virtue of sub-paragraph (3)(b) as if part or all of that payment had not been made,

• (b) order the landlord to reimburse the landholder to the extent that the relevant rent arrears are reduced below the amount paid by the landholder.

• (6) In this paragraph, “relevant rent arrears” means rent arrears due by the landholder to the landlord in respect of the holding as of the date on which the rent review application is determined.

Part 3 — Use of small landholding

11

• (1) A small landholder must comply with the conditions of let in sub-paragraph (2).

• (2) The conditions are that the small landholder—

• (a) must pay the rent due in respect of the landholder’s small landholding when it falls due,

• (b) must not use the holding other than for—

• (i) cultivation,

• (ii) a subsidiary or auxiliary purpose that is reasonable and not inconsistent with the cultivation of the holding,

• (iii) a permitted diverse purpose,

• (c) must, subject to any permitted diverse purpose, competently cultivate the holding, having regard to the rules of good husbandry,

• (d) must, in respect of any permitted diverse purpose, comply with any conditions imposed by the landlord or the Land Court under Part 4 in respect of that purpose,

• (e) must permit the landlord and persons authorised by the landlord to exercise the rights of access over the holding conferred by paragraph 13,

• (f) must not erect or permit the erection of a dwelling-house on the holding otherwise than in accordance with paragraph 12,

• (g) must not breach a term of an agreement entered into in respect of the holding, being a term which is for the benefit of the landlord or neighbouring small landholders which the Land Court considers reasonable in its terms,

• (h) must not sub-let the holding without the consent of the landlord,

• (i) must not assign the landholder’s interest in the holding otherwise than in accordance with paragraphs 29 and 30, and

• (j) must not become apparently insolvent within the meaning of section 16 of the Bankruptcy (Scotland) Act 2016.

• (3) For the purpose of sub-paragraph (2), a “permitted diverse purpose” means a diverse purpose, within the meaning of Part 4, which is the subject of—

• (a) a diversification agreement under paragraph 16(2), or

• (b) an authorised diversification proposal within the meaning of paragraph 26(3).

• (4) The Land Court may on the application of the landlord or the landholder determine whether a subsidiary or auxiliary purpose is reasonable and not inconsistent with the cultivation of the holding.

12

• (1) A small landholder may not erect a dwelling-house on the landholder’s small landholding (whether or not as a replacement for another dwelling-house on the holding) without the prior written consent of the landlord unless sub-paragraph (2) or (3) applies.

• (2) This sub-paragraph applies if—

• (a) the landholder is a landholder mentioned in sub-paragraph (4), and

• (b) no dwelling-house has ever been erected on the holding.

• (3) This sub-paragraph applies if —

• (a) the landholder is not a landholder mentioned in sub-paragraph (4), and

• (b) the dwelling-house is erected to replace a dwelling-house which was on the holding when the Landholders Acts first applied to the holding.

• (4) A landholder referred to in sub-paragraph (2)(a) and (3)(a) is a landholder who, immediately before paragraph 1 comes into force, is a new landholder for the purposes of section 2(1) of the Small Landholders (Scotland) Act 1911, or the successor of such a new landholder.

13

• (1) The landlord of a small landholding or a person authorised by the landlord may, subject to the conditions in sub-paragraph (2), enter the holding for the purpose of—

• (a) cutting or taking—

• (i) timber, other than timber and other trees planted by the small landholder or any predecessor in the tenancy, or which may be necessary for ornament or shelter,

• (ii) peats, other than peats which may be required for the use of the holding,

• (b) accessing the shore of the sea or any loch with or without vehicles for the purpose of exercising any right of property or other right belonging to the landlord,

• (c) viewing or examining at reasonable times the condition of the small landholding including all buildings or improvements which it comprises,

• (d) using a spring of water rising on the holding in accordance with paragraph 14,

• (e) hunting, shooting, fishing or taking game, wild birds or vermin,

• (f) opening or making any other road, fences, drains and water courses,

• (g) mining, quarrying, taking, digging or searching for stone, marble, gravel, sand, clay, slate or any other mineral.

• (2) The conditions referred to are—

• (a) the landlord must give the landholder reasonable notice in writing before exercising the right of access in sub-paragraph (1),

• (b) the right of access in sub-paragraph (1) must be exercised in such a way as to minimise damage to the holding insofar as is reasonably practicable.

• (3) Notice given under sub-paragraph (2)(a) must specify the purpose for which access is to be taken.

• (4) The landlord must pay reasonable compensation to the landholder for any damage caused to the holding, including in particular loss of or damage to crops or livestock, as a result of taking access for any of the purposes referred to sub-paragraph (1).

• (5) The Land Court may, on the application of the landholder or the landlord, determine any dispute arising under this paragraph.

• (6) For the purpose of sub-paragraph (1)(e), “game” means deer, hares, rabbits, pheasants, partridges, quails, grouse, woodcocks, snipes, widgeons and teals.

14

• (1) The landlord of a small landholding may, for any estate purpose, use any spring of water rising on the holding which is not required by the small landholder in connection with the use of the holding.

• (2) The landlord must pay reasonable compensation to the landholder for any surface damage caused to the holding as a result of using a spring of water.

• (3) The Land Court may, on the application of the landholder or the landlord, determine—

• (a) whether a water spring is required by the landholder in terms of sub-paragraph (1),

• (b) whether and, if so how much, compensation is payable under sub-paragraph (2) for damage caused to the holding.

• (4) Nothing in this paragraph is to be construed as affecting the rights of any person other than the landlord and the landholder in relation to any spring of water on the holding.

15

• (1) This paragraph applies where neither the small landholder of a small landholding nor any other person with a right in the holding deriving from the landholder has—

• (a) the right to kill and take game, or

• (b) written permission from the landlord to do so.

• (2) The landholder is entitled to be compensated by the landlord where game or game management have caused the landholder to sustain (whether directly or indirectly)—

• (a) damage to crops grown, or seeds sown, for the purposes of cultivation, a subsidiary or auxiliary purpose or a permitted diverse purpose (within the meaning of paragraph 11(3)),

• (b) damage to trees grown for the purposes of cultivation, a subsidiary or auxiliary purpose or a permitted diverse purpose (within the meaning of paragraph 11(3)),

• (c) damage to fixed equipment,

• (d) damage to livestock,

• (e) damage to habitats.

• (3) Compensation is not recoverable under sub-paragraph (2) unless—

• (a) notice in writing is given to the landlord in such form and manner as the Scottish Ministers may prescribe by regulations as soon as reasonably practicable after the damage or injury was first observed by the landholder,

• (b) a reasonable opportunity is given to the landlord to inspect the damage—

• (i) in the case of damage to a growing crop, before work to reap, raise or consume the crop has begun,

• (ii) in the case of damage to a crop reaped or raised, before work to remove the crop from the land has begun,

• (iii) in the case of damage to a growing tree, before the tree is cropped or cut for timber,

• (iv) in the case of damage to a tree cropped or cut, before work to remove the timber or tree from the land has begun,

• (v) in the case of damage to fixed equipment, before any repairs to the equipment are carried out (unless the landholder has reasonable cause to believe that delaying repairs is likely to cause further damage or injury),

• (vi) in the case of damage to livestock, before any action in relation to the livestock is carried out (unless sub-paragraph (4) applies),

• (vii) in the case of damage to habitats, before any action is taken to repair the damage to the habitat, and

• (c) notice in writing of the claim is given to the landlord in such form and manner as the Scottish Ministers may prescribe by regulations within 6 months of the giving of notice under paragraph (a).

• (4) This sub-paragraph applies if, in relation to the livestock—

• (a) the landholder has reasonable cause to believe that delaying action (including, for example, the destruction of the livestock in an appropriate and humane manner) is likely to cause—

• (i) the affected livestock further suffering or injury,

• (ii) the further spread of disease, or

• (b) any action is required by virtue of any statutory obligation (including, for example, the seizure or destruction of the livestock).

• (5) Where the right to kill and take the game is vested in some person other than the landlord, the landlord is entitled to be indemnified by that other person against all claims for compensation under this paragraph.

• (6) It is for the Land Court to determine any question which arises as to—

• (a) a small landholder’s entitlement to compensation under sub-paragraph (2),

• (b) the amount of compensation payable under that provision, or

• (c) the landlord’s entitlement to be indemnified under sub-paragraph (5).

• (7) In this paragraph—

• “damage” in relation to livestock, includes suffering, injury or disease,

• “game” means deer, pheasants, partridge and grouse,

• “game management” includes the killing and taking of game and any steps taken or not taken by a person in connection with the exercise of a right to kill and take game,

• “tree” includes— fruit trees, trees forming part of a shelterbelt, trees grown for silvopasture or silvoarable systems.

Part 4 — Diversification

16

• (1) The small landholder and the landlord of a small landholding may enter into a diversification agreement.

• (2) A diversification agreement is an agreement that the land comprising the holding, or any part of it, may be used for a purpose other than cultivation (in this Part, a “diverse purpose”).

• (3) A diversification agreement must—

• (a) be in writing, and

• (b) specify—

• (i) the diverse purpose for which the land may be used,

• (ii) the land that may be used for that purpose, by reference to a map,

• (iii) any changes that may be made to the land for that purpose,

• (iv) any conditions relating to the use of the land or any changes to be made to the land for that purpose, and

• (v) the date on which the landholder may commence using the land for that purpose.

17

• (1) A small landholder may give a notice (in this Part, a “notice of diversification”) to the landlord of the landholder’s small landholding where—

• (a) the landholder intends to use the land comprising the holding, or any part of it, for a diverse purpose, and

• (b) the use of that land for that purpose is not the subject of a diversification agreement.

• (2) The notice must specify—

• (a) what the diverse purpose is,

• (b) the land that would be used for that purpose, by reference to a map,

• (c) any changes to the land which the landholder proposes to effect for that purpose, and

• (d) the date on which the landholder proposes to commence using the land for that purpose.

• (3) The notice must also—

• (a) specify any environmental benefit that is intended to be provided in using the land for the purpose specified in the notice in accordance with sub-paragraph (2)(a),

• (b) specify—

• (i) how any such environmental benefit is to be provided,

• (ii) how any proposed changes to the land are to be financed and managed,

• (iii) how any business that is intended to be furthered by the use of the land for that purpose is (so far as relating to the land) to be financed and managed, and

• (c) address such matters as may constitute any ground of objection mentioned in paragraph 19(3)(a)(i) to (iii).

• (4) The notice must—

• (a) be given in writing at least 70 days prior to the date specified in the notice under sub-paragraph (2)(d),

• (b) be in such form as the Scottish Ministers may by regulations prescribe.

• (5) The Scottish Ministers may by regulations modify this paragraph so as to add or remove information to be included in a notice of diversification.

• (6) In this Part, “diversification proposal” means—

• (a) the proposed use of land specified in a notice of diversification in accordance with sub-paragraph (2)(b) for the purpose specified in the notice in accordance with sub-paragraph (2)(a), and

• (b) any proposed changes to the land specified in the notice in accordance with sub-paragraph (2)(c).

18

• (1) A landlord may, on one occasion within the period of 30 days beginning with the day on which a notice of diversification is given to the landlord by a small landholder, request the landholder to provide the landlord with relevant information.

• (2) Information is relevant if it—

• (a) relates to—

• (i) the diversification proposal set out in the notice,

• (ii) where the intended use of the land in accordance with the proposal is in furtherance of a business, the finance or management of the business, and

• (b) is necessary for the landlord’s consideration of whether or not there are grounds under paragraph 19(3)(a)(i) to (iii) or (b) for objection to the proposal.

• (3) The landholder is to provide any information reasonably requested under sub-paragraph (1) within the period of 30 days beginning with the day on which it is requested.

19

• (1) A landlord who is given a notice of diversification by a small landholder must notify the landholder in writing within the period mentioned in sub-paragraph (2) of whether the landlord—

• (a) agrees to the diversification proposal set out in the notice, or

• (b) objects to the proposal.

• (2) The period is—

• (a) where the landlord has made a request for information under paragraph 18(1), the period of 60 days beginning with the day on which the request is made,

• (b) where the landlord has made no such request, the period of 60 days beginning with the day on which the notice of diversification is given.

• (3) The landlord may object to the proposal only if—

• (a) the landlord reasonably considers that implementation of the proposal would—

• (i) lessen significantly the amenity of the land or the surrounding area,

• (ii) substantially prejudice the use of the whole of the land comprising the small landholding for cultivation in the future,

• (iii) be substantially detrimental to the sound management of the estate of which the land consists or forms part, or

• (iv) cause the landlord to suffer undue hardship,

• (b) where the notice specifies a matter mentioned in paragraph 17(3)(b)(ii) or (iii), the landlord reasonably considers that it fails to demonstrate that the proposed changes are, or, as the case may be, the business (so far as relating to the land) is, viable, or

• (c) the landholder has failed to comply with paragraph 18(3).

• (4) Where the landlord agrees to the proposal, the landlord may impose on the landholder any reasonable conditions in relation to the implementation of the proposal.

• (5) Notification under sub-paragraph (1) must—

• (a) where the landlord objects to the proposal, set out the grounds for the objection,

• (b) where the landlord imposes conditions under sub-paragraph (4), set out the conditions and the reasons for imposing them, and

• (c) explain why the landlord considers the grounds or (as the case may be) conditions are reasonable.

• (6) The landlord is to be treated as having agreed to the proposal (without imposing any conditions on the landholder) if the landlord does not notify the landholder in accordance with sub-paragraph (1).

• (7) Where the landlord agrees to the proposal, the proposal may be implemented, subject to any conditions imposed under sub-paragraph (4), from either—

• (a) the later of—

• (i) the date specified in the notice under paragraph 17(2)(d), and

• (ii) where the landlord has made a request for information under paragraph 18(1), the date falling 70 days from the making of the request, or

• (b) such earlier date as the landlord and the landholder may agree to.

• (8) The Scottish Ministers may by regulations—

• (a) modify sub-paragraph (3) so as to add or remove a ground for objection to a proposal,

• (b) make provision about—

• (i) information to be included in a notice given under sub-paragraph (1)(b) in relation to each ground of objection,

• (ii) the manner in which that information is to be provided.

20

• (1) This paragraph applies where a landlord notifies a small landholder under paragraph 19(1)(b) that the landlord objects to a diversification proposal in a notice of diversification.

• (2) The landholder may, within the period of 30 days beginning with the day on which notification of the objection is given, notify the landlord in writing that the landholder wishes to negotiate a diversification agreement with the landlord.

• (3) Where, following notification being given under sub-paragraph (2), the landholder and the landlord enter into a diversification agreement, the notice of diversification is to be treated as if it had not been given if—

• (a) the agreement is entered into within the period of 90 days beginning with the day on which notification of the objection was given under paragraph 19(1), and

• (b) when the agreement is entered into, the landlord has not made an application to the Land Court under paragraph 23(2) in relation to the objection (but see paragraph 24).

• (4) Sub-paragraph (5) applies where the landholder notifies the landlord under sub-paragraph (2) that the landholder wishes to negotiate with the landlord.

• (5) The period within which the landlord may—

• (a) withdraw the objection to the diversification proposal in the notice of diversification under paragraph 21(1), or

• (b) make an application to the Land Court under paragraph 23(2) in relation to the objection,

is, instead of the period mentioned in paragraph 21(1) or (as the case may be) 23(3), the period of 90 days beginning with the day on which the objection is notified under paragraph 19(1)(b).

21

• (1) A landlord may withdraw an objection to a diversification proposal notified to a small landholder under paragraph 19(1)(b) within the period of 60 days beginning with the day on which it is notified.

• (2) Where the landlord withdraws the objection, the landlord—

• (a) must notify the landholder in writing of the withdrawal, and that the landlord now agrees to the proposal, and

• (b) may impose on the landholder any reasonable conditions in relation to the implementation of the proposal.

• (3) Where the landlord imposes conditions under sub-paragraph (2)(b), the landlord must, at the same time as notifying the landholder of the withdrawal of the objection, notify the landholder in writing of—

• (a) the conditions and the reasons for imposing them, and

• (b) why the landlord considers the conditions are reasonable.

• (4) Where the objection is withdrawn under sub-paragraph (1)—

• (a) the proposal may be implemented, subject to any conditions imposed under sub-paragraph (2)(b), from the later of—

• (i) the date specified in the notice of diversification under paragraph 17(2)(d), and