Statements to be provided in documentation
Documents which give rise to dispositions (including contracts, transfers and leases) must include certain prescribed statements. Under the current legislation, the statements are to be provided by the trustees of the charity. The new legislation is to place this obligation upon the charity itself. The wording of the statements is also to be amended to make this clearer, although the wording has little effect on how the provisions operate.
Added protection for purchasers
The current legislation potentially enables a charity to invalidate a disposition as a result of its own failure to comply with the Charities Act. As this is unfair to a purchaser who is acting in good faith, a purchaser for value acting in good faith will be protected by the new provisions.
Universities and Colleges
Dispositions and mortgages under the Universities and College Estates Act 1925 must now comply with the provisions of the Charities Act.