Charities Act Valuation Report
Introduction to Charities Act Report
The Charities Act 2011 requires that the trustees of registered charities obtain a written report if they are planning to dispose of the property. The report must be provided by a qualified surveyor and applies to land, property and leases over seven years.
What is a Charities Act Valuation Report?
Charities Act report slightly differs from a standard “Red Book” report and address a number of points including:
- Summary of material lease terms
- Comment on relevant easements and restrictive covenants
- Comment on property condition
- Advice if it in the best interest of the charity to undertake repairs prior to disposal
- Details of such repairs (if any) and costs
- Advice on the best disposal method and if the asset should be divided to achieve higher price
- The value of the property
Who can undertake a Charities Act Valuation?
Based on section 117(2)(b) of the Charities Act 2011, charity trustees must, before entering into an agreement for the sale, or other disposition, of the land obtain and consider a written report from a qualified surveyor instructed by the trustees and acting exclusively for the charity. A qualified surveyor is a person who -
- is a fellow or professional associate of the Royal Institution of Chartered Surveyors or satisfies such other requirement or requirements as may be prescribed by regulations made by the Minister, and
- is reasonably believed by the charity trustees to have ability in, and experience of, the valuation of land of the particular kind, and in the particular area, in question.
It is the responsibility of trustees to appoint a suitably qualified surveyor who will act independently and in their best interest.
When to obtain a Charities Act Report?
It is advised that report is obtained prior to the exchange of contracts but obtaining a report prior to marketing is highly recommended. This is because one of the pointes addressed in the report cover appropriate disposal method.
At Copping Joyce Surveyors we offer an independent, strategic and well experienced service to charity clients.