Purchase Checklist

Whilst full guidance is provided in the Purchase Guidance for Managing Trustees, this checklist summarises the charity law and Methodist law, policy and best practice requirements that must be met before TMCP can confirm its approval to exchange of contracts taking place.

In this Checklist, “the 2011 Act” means the Charities Act 2011.

1. Final Consent (Standing Order 930(4)(i))

You will need to log a project on the Property Consents Website so that the three levels of consent can be entered. Please see Section C1 of the Managing Trustees Purchase Guidance Notes for details of how to log a project. Final Consent to the project must be entered before contracts can be exchanged.

2. Purchase survey (This requirement follows from the Managing Trustees general duties to act prudently and in the best interests of the charity as charity trustees under Common Law and the 2011 Act)

A purchase survey (including a valuation) must be obtained and reviewed by TMCP Legal before TMCP can approve exchange. By providing the purchase survey the Managing Trustees will be confirming that they have negotiated the best deal that they can for the charity.

Structural survey

It is good practice for the Managing Trustees, in accordance with their duty to act prudently under the 2011 Act, to obtain a full structural survey before buying property to be placed on the Model Trusts, and this can be a mandatory requirement of some Districts. Please consider the guidance in Section B2 of the Purchase Guidance for Managing Trustees and either provide a copy of your full structural survey to TMCP or explain why you have decided not to obtain one.

3. Connected Persons (This requirement follows from the Managing Trustees general duties to act prudently and in the best interests of the charity as charity trustees under Common Law and the 2011 Act

Confirmation is required as to whether the seller is connected to the charity within the meaning of s.118 of the 2011 Act before TMCP can approve exchange.

If the seller is NOT a connected person your solicitors must (1) ask the seller to sign a properly completed Connected Person Certificate available from TMCP confirming this to be the case and (2) return the Connected Person Certificate to TMCP with confirmation that as far as they and the Managing Trustees are aware the seller is not connected.

If the seller IS a connected person the Managing Trustees will need to apply to the Charity Commission for an Order authorising the purchase and produce this to TMCP before TMCP can approve exchange of contracts.

4. Approval of contract, transfer and/or lease (Standing Order 930(3) & 931(3))

TMCP’s approval of the purchase contract, transfer and/or lease is required before exchange of contracts. To obtain approval the Managing Trustees' solicitors will need to include all the template Methodist and Charities Act 2011 clauses. It is important that they contact TMCP to ensure that they have up-to-date Purchase Template Clauses and the Purchase Guidance for Solicitors.

The Stamp Duty Land Tax form (SDLT form) must also be approved by TMCP Legal. Guidance is provided in the Purchase Guidance for Solicitors.

5. Title issues (Standing Order 930(3) and 931(3))

Confirmation is required from your solicitors that the Methodist Church is acquiring good title and if appropriate that any warranties usually available on purchases of new builds will be provided on completion.

TMCP is merely asking for confirmation that everything is in order. Your solicitors should be checking this in any event as part of the duty of care that they owe to you as their client. This is not/ or should not create any additional work for your solicitors.

6. CPD Requirements – Manses only (Obligation on Managing Trustees to check suitability under Standing Order 803)

Confirmation is required from the Managing Trustees that any new Manse satisfies the requirements set out in Standing Order 803 and associated guidance.

7. Finance

Before agreeing a purchase the Managing Trustees will need to decide how the purchase will be funded. TMCP will not approve exchange until confirmation has been provided via the funding information tab on the Consents Website that sufficient funds are available/ confirmed. (Please see guidance in Section B3 of the Purchase Guidance for Managing Trustees and Section B7 of the Purchase Guidance for Solicitors.)

Please remember that two authorised Managing Trustees will need to arrange to sign the contract in advance of exchange. Authority cannot be delegated to Managing Trustees' solicitors.

Please refer to Sections B3, C and D of the Purchase Guidance for Managing Trustees for guidance on the procedures and steps to be taken at exchange and completion including making payment requests in time for release of funds on exchange and completion.

Disclaimer

Please note that this document is to provide guidance and assistance to Managing Trustees and their professional advisers. This guidance note is general in nature, may not reflect all recent legal developments and may not apply to the specific facts and circumstances of any particular matter.

Also note that nothing within the documents and guidance notes provided by TMCP nor any receipt or use of such information, should be construed or relied on as advertising or soliciting to provide any legal services. Nor does it create any solicitor-client relationship or provide any legal representation, advice or opinion whatsoever on behalf of TMCP or its employees.

Accordingly, neither TMCP nor its employees accept any responsibility for use of this document or action taken as a result of information provided in it.

Please remember that Managing Trustees need to take advice that is specific to the situation at hand. This document is not legal advice and is no substitute for such advice from Managing Trustees' own legal advisers.

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