Changes In The Pipeline To Charity Law Regulating Land Transactions

Published date25 March 2021
Subject Matterorporate/Commercial Law, Charities & Non-Profits
Law FirmWrigleys Solicitors
AuthorMr Tim Wrigley

Review of the Government's response to Law Commission recommendations for reform.

The Law Commission reviewed a number of technical issues in charity law in 2017 and set out recommendations for reform. The Government has now issued its response (March 2021).

This article summarises the key changes we can expect. There is no set timetable for when a new charity bill will start the parliamentary process. The Government says it will be introduced when parliamentary time allows. Any such changes could therefore be a way off yet.

Recommendations that the Government has agreed with:

  1. For dispositions of land using the self-authorisation procedure of obtaining and following the advice of a qualified surveyor replace the current "Qualified Surveyors' Reports Regulations" with a more proportionate and less proscriptive advice regime. Also to expand the persons who can advise to include
    1. fellows of the National Association of Estate Agents, and
    2. fellows of the Central Association of Agricultural Valuers, and clarify that any charity trustees, officers and employees with the right qualification can provide such advice.
  2. In line with item 1 remove the requirement that charity trustees advertise the proposed disposition in the manner advised in the surveyor's report.
  3. The restrictions on charities disposing of land in Part 7 of the Charities Act 2011 will only apply where land is held by or for a single charity. Where 2 or more charities hold land jointly general trustee duties will continue to apply, but the specific requirements of Part 7 will not apply.
  4. It will no longer be necessary to get a Charity Commission or court consent for a short residential tenancy for a charity employee. This will be an exception to the "connected persons" rule. The general restrictions in Part 7 will still apply to such transactions.
  5. A contract for a disposition of charity land will be enforceable by a purchaser if
    1. The charity has given a certificate in the contract that Part 7 has been complied with; or
    2. such a certificate has not been given but the purchaser has acted in good faith.
  6. Disposals of land by liquidators, administrators, receivers and mortgagees will be excluded from the restrictions in Part 7.
  7. The exception...

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