Selling Land as Sole Charity Trustees

Councils that act as the sole trustee of a charity should take particular care if they are considering selling land or other charitable property.

Section 27(2) of the Law of Property Act 1925 provides that proceeds from the sale of land or other capital money should not normally be paid to, or applied at the direction of, fewer than two trustees.

This can create additional considerations where the council itself is acting as the sole corporate trustee.

Why This Matters

Where a council holds land in its capacity as charity trustee, the sale is not simply a routine disposal of council property. The council must consider its responsibilities as trustee and ensure that the transaction is handled in accordance with the relevant legal requirements.

This can affect how the sale is structured, how the proceeds are dealt with and whether any additional steps are needed before the transaction can complete.

Seek Advice Early

If your council is considering selling land or other property that it holds as sole charity trustee, it is important to seek appropriate legal advice before the process begins.

Taking advice at an early stage can help clarify the council’s position, ensure the correct procedures are followed and reduce the risk of delays or complications later in the transaction.

Councils should also make sure they are clear about whether the land is held by the council in its own right or specifically in its capacity as charity trustee, as this can affect the process that needs to be followed.