Charity property disposals made (relatively) simple: Understanding the Charities Act 2022
As a charity trustee, you're likely familiar with the administrative burden of property disposals – coordinating with external surveyors, managing professional fees and navigating complex compliance requirements.
We understand these pressures because our charity law team hears about them regularly from trustees across the country. The Charities Act 2022 has introduced important reforms that can streamline your property transactions, though they come with responsibilities that many trustees find confusing.
This guide explains one of the key changes, what it means for your charity and how to navigate the rules safely while maximising the benefits.
How the Charities Act 2022 changed property disposal requirements
Previously, charity trustees were required to obtain written reports from an independent designated adviser, typically a RICS-qualified surveyor. The designated adviser needed to provide advice on the most appropriate method of disposal, how to advertise the property and its current value.
The Act has widened the category of designated advisers and now allows trustees, officers or employees of a charity to provide advice if they meet the relevant competency requirements. Specifically, they must have the requisite ability in, and experience of, the valuation of that kind of property and in that area.
This change gives charities more flexibility in who they can seek advice from in relation to land disposals, which should save administrative costs while still ensuring that the value of charity land is maximised and trustees do not make uninformed decisions.
However, it's important to note that it won't be appropriate for a charity trustee to be the designated adviser in all disposals – the competency requirements must be genuinely met for your specific property type and location.
How we help charities navigate property disposals
The Charities Act 2022 has simplified certain aspects of charity property disposals, but the legal and regulatory landscape remains complex. Many trustees find themselves uncertain about their specific obligations and whether they can benefit from the Act's flexibility.
Our charity law specialists work with charity clients on an ongoing basis, combining deep technical expertise with practical understanding of charity operations. We can give you guidance to assist you in making an informed decision as to whether your trustees or staff meet the competency requirements for your specific transaction.
If you're considering a property disposal, our charity law team can review your situation and explain exactly what options the rules give you. We'll help you understand whether you can benefit from the Act's flexibility while ensuring you meet all your obligations as trustees.
To discuss your property transaction, contact Real Estate Associate Ryan Cotton on 01274 848 837 or email ku.oc1780328246.fcl@1780328246notto1780328246cr1780328246.
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