Disposing Of Charity Land – Obtaining Consent To Dispose

When a charity wishes to dispose of land/property, there are a number of additional considerations to be satisfied.

A charity which is regulated by the Charity Commission must comply with the Charities Act 2011 before it agrees to sell land/property held for a charitable purpose. Obligations imposed upon the trustees include obtaining certain consents from either the Charity Commission, or a qualified surveyor, to ensure that such a disposal is negotiated and based on the best possible terms for the benefit of the charity. The overriding principle expected of charity trustees is to act in the best interests of the charity.

Before consent is provided, advice should be sought from relevant professionals on the terms of any disposition and the process of disposal, including any requirement to advertise.

When is consent required to dispose of charity land?

Consent is required before charity trustees agree terms for or enter into any obligations regarding any qualifying disposition as defined by Section 117-123 of the Charities Act 2011. ‘Disposals’ include any conveyance or transfer and the grant of a lease for a term longer than seven years.

Who needs to provide consent?

Depending on the disposition and other circumstances, consent will be required of either:

1. The Charity Commission; or
2. A surveyor (RICS qualified) with appropriate geographical and topical experience.

If a charity is considering entering into a disposal, its trustees should contact us to discuss their duties to ensure that the legislation is complied with.