Articles

Failing to comply with these requirements can land the charity, and particularly its Trustees,  in deep trouble and render Trustees personally liable for breach of trust.

The 2022 Charities Act amended provisions already set out in the 2011 Charities Act for the procedures to be followed when charities wished to dispose of a property asset. Trustees must:

1. Act in the charity's best interests and ensure the disposal is reasonable.
2. Check that the charity has the power to dispose of the land (usually granted by the charity's governing document or a power in law).
3. Ensure the land is sold for the best available return. This may involve obtaining a formal report from a ‘Designated Advisor’, even if it's not strictly required.
4. Take expert advice and act in accordance with good governance procedures.
5. In some cases, trustees may need to obtain consent from the Charity Commission.

For most disposals (including the grant of a lease of over 7 years) Trustees must, prior to becoming contractually bound to enter into the disposal:

1. Obtain and consider a written report on the proposed disposal from a Designated Advisor instructed by the trustees and acting exclusively for the charity; and
2. Decide that they are satisfied, having considered that report, that the terms on which the disposal is proposed to be made are the best that can reasonably be obtained for the charity.

A Designated Advisor has to be qualified as follows:

1. A Fellow or professional associate of the Royal Institution of Chartered Surveyors (RICS); or
2.  A Fellow of the Central Association for Agricultural Valuers (CAAV); or
3.  A Fellow of the National Association of Estate Agents Propertymark (NAEA).

SHW has Chartered Surveyors (FRICS & MRICS) who are RICS Registered Valuers and well qualified to advise charities on disposing of property assets, as well as property matters generally.

For any queries please contact:

Mark McFadden – FRICS, Partner

☎️ 07740449378

 mmcfadden@shw.co.uk