New Statements for Property Disposals are finally here!

March 8, 2024

Yesterday, 7 March 2024, saw the implementation of a number of sections of the Charities Act 2022 including those dealing with the statements which go into documents on the disposal of land.  This is great news for charities as, under the new rules, all statements will be given by the party executing the document. So for sales of land on the administration of an estate, the statement will be given by the personal representatives. This resolves the previous anomaly with these aspects under the Charities Act 2011 (the ‘CA 2011’) as unamended, which required that where there was an appropriation to only one single charity, the trustees of that charity had to give the necessary ‘certificate’.

It is also notable that previously you needed to include in the documents for disposal (a contract and transfer or other disposal document (the ‘transfer’)):

  • a statement of applicability of s.117 CA211 to the particular disposal – which went in both the contract and the transfer; and;
  • a certificate confirming compliance which just went in the transfer.

By contrast, under the new rules, only a statement is required. This goes in both the contract and the transfer and deals with both applicability and compliance.  This simplifies matters and also ensures that buyers (who are entitled to rely on the certificate as conclusive evidence of the power to sell) are able to have that protection from the point of the contract i.e. when they commit to the transaction.

There are transitional provisions for where contracts have been exchanged ahead of 7 March 20024 and where completion takes place after this date. 

If you have any queries, please do contact Anna Phillips and her team at Foot Anstey.

Anna Phillips

Head of Charity Property