The template “Designated Adviser’s Report” (Template DAR) and “Shortform Designated Adviser’s Report” (Template (Shortform) DAR) are new template documents. They have been produced following reforms made to the Charities Act 2011 which came into force on 14th June 2023. The Template DAR replaces the previous “Template QSR” and the Template (Shortform) DAR is a new shortform document. The new templates are available from the same web address (URL) as the previous Template QSR to safeguard existing links.
Managing Trustees are legally required to obtain a Designated Adviser’s Report (DAR) before disposing of land held by or in trust for a charity e.g. on sale, leasing or granting an easement. This requirement is contained under s.119 of the Charities Act 2011 (as amended) (2011 Act). To help Managing Trustees obtain the clarity of advice they need as Methodist Managing Trustees, TMCP have produced a template DAR (Template DAR).
A 2011 Act (as amended) compliant DAR must be prepared by a designated adviser, being a person who is a fellow or professional associate of the Royal Institution of Chartered Surveyors or who fulfils the requirements set out in Regulation 3 of The Charities (Dispositions of Land: Designated Advisers and Reports) Regulations 2023 (2023 Regulations). (Please refer to the DAR Focus Note) A compliant DAR must deal with such matters that are prescribed by Regulation 4 of the 2023 Regulations including any “other” matters as the designated adviser believes should be drawn to the attention of the charity trustees.
It would help Managing Trustees to obtain the clarity of advice they need before marketing a property if in addressing the five points set out in Regulation 4 of the 2023 Regulations, the designated adviser instructed by the Managing Trustees considers the specific questions set out in the Template DAR as part of the overall report that is prepared for the charity and provides responses where appropriate.
The Template DAR has been designed in such a way to ensure that by providing the information asked for in the table, the designated adviser will provide the necessary advice required to fulfil the requirements of the 2023 Regulations and clarify their advice on key aspects within the 2023 Regulations as they apply to disposals by Methodist Managing Trustees. Use of the Template DAR should help provide Managing Trustees with a disposal report that contains the advice they need to satisfy themselves that the ultimate terms proposed are the best they can reasonably get for the charity. Managing Trustees are obliged to satisfy themselves of this under s.119(1)(c) of the 2011 Act (as amended).
In some cases, designated advisers may prefer the flexibility of the Template (Shortform) DAR which sets out the five points contained in Regulation 4 of the 2023 Regulations and includes the statements required under Regulation 4(2). Please refer to the DAR Focus Note and Template Designated Adviser’s Instruction Letter for guidance on which template may be more appropriate and when.
Note to designated advisers: Before using the Template DAR (or Template (Shortform) DAR) please ask your instructing Managing Trustee body to provide you with their instruction letter based on the Template Instruction Letter, their completed Check-In One Checklist (if the disposal is following TMCP’s streamlining process and they have already had a Check-In One with TMCP) and refer to the guidance relating to the transaction in question on the TMCP website including the DAR Focus Note.
If you require the templates in pdf format, please contact us.
If you have any queries in relation to the guidance in this document please contact TMCP Legal for further assistance.