Charity Property Transactions
Charity trustees must be very careful to make sure that they are acting in the best interests of their charity. It is no different when it comes to charity property transactions, and the Charities Act 2011 sets clear guidelines for charities wishing to deal with property.
The Charities Act 2011 imposes obligations on trustees looking to:
- sell freehold or leasehold property;
- grant leases;
- sell their lease back to their landlord; and
- mortgage property.
The requirements will vary depending on the circumstances of the transaction, but it is essential that charity trustees take advice right at the outset of the transaction in order to avoid delays. In some circumstances, the trustees may have to obtain consent to their transaction from the Charity Commission, which can take some time to obtain.
Whether the property is small or large the provisions of the Charities Act 2011 will apply, and a failure to adhere to the obligations may have serious repercussions for the charity trustees. It is therefore important that you get it right, so do not hesitate to contact us.
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