Does a charity have to have a professional valuation when they acquire a property as well as when they are selling?
SHARE
Does a charity have to have a professional valuation when they acquire a property as well as when they are selling?
Example question and answer provided by panel member, Roger Sherliker, Hughes Ellard – Nov 2012
When a charity proposes to acquire a property there is no requirement for them to obtain professional advice (unless such a requirement is in the Trust Deeds) but the Charity Commission strongly recommends that they obtain a report from a qualified surveyor when considering a purchase. The trustees must take all reasonable steps to ensure that the property is suitable for their use, that any necessary planning permission is obtained and that the price or rent is fair compared with similar properties in the market. If a lease is involved they should understand the obligations that they will be entering into. When a charity wishes to dispose of an interest under the Charities Act they must obtain a report from a qualified surveyor fully advising them on the matter including whether it is in their best interest to sell or let a property.