Auction Sale Checklist

This page was last updated on 19th June 2023 following reforms made to the Charities Act 2011 which came into force on 14th June 2023. These relate to the report that charity trustees are required to obtain before certain disposals of charity land and who can provide such a report, now known as a “Designated Adviser's Report” or DAR. TMCP is currently updating its guidance and resources.

Whilst full guidance is provided in the Sale Guidance for Managing Trustees and Auction Sale Focus Note, this checklist summarises the charity law and Methodist law, policy and best practice requirements that must be met before a property can be sold at auction. TMCP will confirm to your solicitors once these requirements have been satisfied.

In this Checklist:

“the Designated Adviser's Report” or “DAR” means a report prepared by a designated adviser in compliance with the 2023 Regulations.
“the 2023 Regulations” means the Charities (Dispositions of Land: Designated Advisers and Reports) Regulations 2023.
“the 2011 Act” means the Charities Act 2011 (as amended by the Charities Act 2022).

1. Final Consent (SO 930(4)(ii))

You will need to log a project on the Property Consents Website so that the three levels of consent can be entered (for example, Church Council, Circuit Meeting, and District consent). Final. Consent to the project must be entered before the date of the auction.

2. Designated Adviser's Report (DAR) approved by TMCP s.119 of the Charities Act 2011

You will need to obtain and consider a DAR prepared by a designated adviser and have the DAR approved by TMCP. To be approved the DAR must address the matters set out in the 2023 Regulations (See the DAR Focus Note (currently being updated)).

If the DAR will be more than six months old by the proposed auction date, TMCP will require sight of an updated DAR or written confirmation from your designated adviseron the firm’s headed paper that the advice and contents of the original DAR remain valid. This is TMCP policy and follows guidance issued by the Charity Commission.

3. Approval of contract, transfer and/or lease SO930(3) & 931(3)

TMCP’s approval to the sales contract, transfer and/or lease is required. To obtain approval the Managing Trustees' solicitors will need to include all the template Methodist and 2011 Act clauses. It is important that they Contact TMCP to ensure that they have up-to-date Sale Template Clauses and access to the guidance and auction specific template clauses in the Auction Sale Focus Note. (If you are using a panel solicitor and following TMCP’s streamlining process, there is a set of pre-approved documents that they will be using.)

4. Confirmation and Approval of Reserve Price Model Trust 16(1)(b) and s.119(1)(b) and (c) of the Charities Act 2011

The designated adviser must confirm their recommendation in writing regarding the Reserve Price to the charity. This recommendation, which could be included as part of the DAR, must be sent to TMCP for TMCP’s approval before the auction date.

Please remember that two Managing Trustees will need to arrange to sign the contract in advance of the auction.

v2.0 19th June 2023

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.