The Law Commission recommended the expansion of the category of advisors to include the National Association of Estate Agents (NAEA Propertymark). However, the Act requires agents must have appropriate experience in the valuation of land owned by charities.
Previously only fellow or associate members of the Royal Chartered Institute of Surveyors (RCIS) were able to conduct advice for charities wishing to sell land, with charities needing a report from the RICS, before agreeing on a sale.
Propertymark lobbying
Representing members' interests, we worked with the Department for Culture, Media and Sport on the terminology and accuracy of the Charities (Dispositions of Land: Designated Advisers and Reports) Regulations 2023, which came into force on 14 June 2023 and removes restrictions on who can sell land for charitable organisations. The change required secondary legislation to expand who qualified as a designated adviser, and as a consequence, The Charities (Qualified Surveyors’ Reports) Regulations 1992 have been revoked.
Designated advisers’ report
A new and more open report can be used and will enable agents to tailor their advice to the specific situation of the charity. The following information needs to be included:
- The value of the relevant land
- Any steps that can be taken to enhance that value
- Whether the land should be marketed and, if so, how it should be
- Anything which could be done to ensure that the terms of the purchase or sale are the best that can reasonably be obtained for the charity
- Any other matters that the adviser believes should be drawn to the attention of the charity trustees
Propertymark has produced FAQs to help members understand the changes and how they can potentially add a revenue stream to their business.
FAQs: Charities Act 2022
The Charities (Dispositions of Land: Designated Advisers and Reports) Regulations 2023 remove restrictions on who can sell land for charitable organisations. The change required secondary legislation to expand who qualified as a designated adviser.
Becoming a Propertymark Fellow Member
Fellow Grade (FNAEA) is the pinnacle of membership and agents must have at least five years of experience in the industry and completed a relevant Level 4 qualification.
Find out more about how you can become a Propertymark Fellow →
This landmark change means that NAEA Propertymark members who hold fellow grade status can now undertake this valuable work, expand their services and support charities with a faster, more seamless selling process, while further cementing our industry's indispensable role in the charitable sector.
