Sect. 24 (a). Sale by private contract. Sale by auction. Procedure in case of Sale. Trustees desiring to have a proposed sale carried through the office of the Charity Commissioners with the greatest expedition should transmit to them an application in Form No. 9 of the Charity Commission Forms, printed in App. II., post, together with a report of a surveyor of respectability unconnected with the proposed purchaser. This report should follow the lines indicated in Form No. 10 of the Charity Commission Forms in App. II., post. The main points upon which the commissioners desire information from the surveyor are (1) as to the intrinsic value of the property, apart from the proposal for its purchase; and (2) as to any addition to that intrinsic value which the vendors should require, having regard to the special relation of the intending purchaser to the property. The trustees would do well, especially if they receive a highly advantageous offer, to enter into a provisional contract for sale before applying to the commissioners. The contract entered into should be conditional on the sanction of the commissioners being obtained. Upon receiving the application and report, the commissioners, if the proposal seems sufficiently advantageous to the charity, usually direct notice of the proposed sale to be published in the locality. This is done with the view of testing the propriety of the sale and the sufficiency of the terms offered. Where the proposed sale does not appear to the commissioners to be such as to justify them in proceeding with it at once, they frequently require to be furnished with a report from a surveyor of their own nomination. The commissioners have no surveyor attached to their office; the further report is consequently made in the first instance at the cost of the charity. The commissioners, however, usually make it a condition of their assent to a sale that the purchaser shall accept the title of the trustees, and shall pay all costs incidental to the sale, including the charges of all surveyors employed. If a title is deduced and verified, the cost is similarly paid by the purchaser. If the proposed sale is one which, on the face of it, offers no advantage to the charity, the commissioners may decline to proceed with it. Where the publication of the notice above mentioned elicits no objections to the sale and no offers of a higher price, an order is made authorizing the trustees within six months to sell the property for not less than the price named, "and to do and execute all proper acts and assurances for carrying the said sale into effect, and to give a conclusive discharge to the purchaser for the said purchase-money." If, on the other hand, objections are made or higher offers obtained, they are considered by the commissioners, with the result sometimes, after communication with the parties making such higher offers, of securing to the charity a price largely in excess of that originally offered. Sometimes, in such cases, the commissioners require the property to be put up for sale by auction. Where the trustees desire to sell by auction in the first instance, they should submit to the commissioners an application and report, as in the case of a sale by private contract. The report should indicate whether it is proposed to offer the property for sale in one or more lots, and if in more than one, how it is proposed to divide the property; it should also state the surveyor's opinion as to the reserve price to be placed upon each lot. If the commissioners approve of the proposal they usually direct the trustees to cause particulars and conditions of sale to be prepared, at the same time transmitting either Form No. 11 or Form No. 12 of the Charity Commission Forms, printed in App. II., post, to be inserted in the conditions; and the particulars and conditions must be submitted to them for approval. When the conditions are returned approved by the commissioners, the reserve price which they require to be fixed for each lot is communicated to the trustees. The property is then offered for sale, and the commissioners, on being informed by the trustees that all or any of the lots have been sold for not less than the reserve price, make an order authorizing the trustees to complete the sale of each lot. If several lots are bought by one purchaser they are generally included in one order, unless the purchaser desires to have a separate order for each lot. Before making the orders, the commissioners require to see the original contracts, and to be supplied with copies for retention. If the reserve price is not reached, and an offer to purchase for not less than the reserve price is subsequently made, the sale proceeds as by private contract. Sect. 24 (a). The order usually directs that the purchase-money shall be paid by the Purchasetrustees to the banking account of the official trustees of charitable funds at money. the Bank of England. The balance of the purchase-money is directed to be invested by the official trustees in 22 per Cent. Consolidated Stock, to be held in trust for the charity, subject to the further order of the Board, and dividends are directed to be remitted by the official trustees to the trustees for the time being of the charity, or any one or more of them, or any person or persons authorized by the trustees to receive the same. trustee. Unnecessary. If the legal estate is vested in the official trustee of charity lands, the Concurrence order directs that he shall, if the purchaser requires, join in the conveyance. of official The concurrence of the official trustee is unnecessary, because, under sect. 12 of the Charitable Trusts Act, 1869, post, a majority of the trustees are empowered to convey on behalf of all the trustees and of the official trustee of charity lands. The official trustee does not enter into any covenants. Where the title is derived under the Charit. Trusts Acts, an abstract, if delivered, must show that the requirements of the Acts have been complied with. Official trustee does not covenant. Abstract of title. Conveyance missioners. The conveyance need not be submitted for the approval of the commissioners except when the concurrence of the official trustee of charity lands when subis required. A form of conveyance when the official trustee joins will be mitted to comfound in Form No. 13, Charity Commission Forms, printed in App. II., post. The Charity Commissioners not infrequently authorize a sale for the Removal of purpose of removing the site of a charitable institution in cases in which it site. is beneficial to the charity. scheme. Where the effect of a sale will be to effect a material change in the sub- Where sale sisting trusts of the charity, it is not made under the powers of the present made by section, but under the general power of establishing schemes conferred by sect. 2 of the Charit. Trusts Act, 1860, post, p. 558. Procedure in case of Exchange. It has been stated (ante, p. 268) that orders for exchange are rarely made Order by the Charity Commissioners. When such an order is made, the commissioners require to be satisfied that the proposed exchange will be beneficial to the charity. A report of a authorizing exchange. Sect. 24 (a), (b). Forms. Investment. Board may authorize the salve or redemption of rentcharges (a). Power to surveyor, with regard to the exchange, must be obtained and submitted to them, and also a certificate in writing under the hand of the solicitor of the charity trustees deposing to the sufficiency of the title of the land to be received in exchange. Upon being satisfied on these points, the commissioners make an order authorizing the charity trustees within six months to carry the exchange into effect, and to do and execute all necessary acts and assurances. A form of application for an order authorizing an exchange will be found in App. II., Charity Commission Forms, No. 14, post. And as to the mode of application, see sect. 5 of the Charit. Trusts Act, 1869, post. (b) Power to re-invest in land is given by sect. 35 of Charit. Trusts Amend. Act, 1855, post. And the carrying into effect of all orders for investment is provided for by sect. 36 of the same Act, post. See also form of order stated in n. (a), supra. 25. The said Board shall have authority, upon such application as aforesaid, to authorize the sale to the owners of the land charged therewith of any rent-charge, annuity, or other periodical payment charged upon land and payable to or for the benefit of any charity, or applicable to charitable purposes, upon such terms and conditions as they may deem beneficial to the charity, and to give such directions for securing the due investment of the money arising from such sale for the benefit of the charity, or for securing the due application thereof to such charitable purposes as they may think fit (b); and in like manner the trustees of any charity, with the consent of the Board, may purchase any rent-charge or other yearly payment to which the charity estate is or shall be liable. (a) Where a rent-charge in favour of charity does not exceed 107., the determine out Board may determine out of what specific part of the land it is payable. of what land Such specific part then remains solely charged, and the rest is exonerated: Charit. Trusts Amend. Act, 1855, s. 33, post. rent-charge payable. Order for payable to charity. Orders for the redemption of rent-charges are made on the joint proposal redemption of of the charity trustees and the person out of whose land the rent-charge rent-charge issues. The price for redemption is a sum of 23 per Cent. Consolidated Stock sufficient in amount to produce an income equal to the rent-charge, which is transferred to the official trustees of charitable funds in trust for the charity. All arrears of the rent-charge are also required to be paid up to the date of the transfer. The order is almost invariably carried out under the powers conferred by sect. 23, ante, and not under this section: see note (a) to that section. It recites the proposal and transfer, and states that the Board are satisfied that the redemption is fit and proper. It then proceeds to order that the transfer shall operate as a final and absolute redemption of the rent-charge, and as a complete and effectual compromise and adjustment of all claims on behalf of the charity in respect thereof, and that the rent-charge shall cease and be extinguished, and that the order shall be a final bar to all actions and claims on behalf of the charity in respect of the rent-charge. The order then directs, in common form, that dividends shall be transmitted by the official trustees to the trustees of the charity for the time being, or one or more of them, or the person or persons for the time being authorized by the trustees to receive the same. Sect. 25 (a), (b). In the case of a purchase by the trustees of a rent-charge, as, for instance, Order for tithe rent-charge, to which the charity property is liable, the Board require purchase of rent-charge. to be satisfied by the statement of the trustees that the proposed purchase is proper, and they require, also, a certificate by the trustees' solicitor of the sufficiency of the title of the persons claiming the rent-charge. The order then authorizes the trustees to carry out the purchase within six months, at the price named, and directions are, when necessary, given for providing the purchase-money. (b) The mode in which investment is provided for will be apparent from Investment. the statement in the last note of an order for redemption of a rent-charge. See further, as to investment, sect. 36 of the Charit. Trusts Amend. Act, 1855 post. &c. autho 26. The leases (a), sales, exchanges (b), and other Leases, sales, transactions authorized by such Board under the powers rized by the of this Act shall have the like effect and validity as if Board to be they had been authorized or directed by the express terms of the trust affecting the charity (c). (a) See sect. 21, ante. (b) See sect. 24, ante. (c) And they are valid notwithstanding disabling Acts: Charit. Trusts Amend. Act, 1855, s. 38, post. valid. charities chase sites owners ability, &c., according to the provisions of 8 & 9 Vict. c. 18 (a). 27. Where any land shall be required for the erection Trustees of or construction of any house or building with or without may purgarden, play-ground, or other appurtenances, for the for building purposes of any charity, and the trustees of the charity from one shall be legally authorized to purchase and hold such land (b), but by reason of the disability of any person having an estate or interest in such land, or of any defect in title thereto, a valid and perfect assurance of the same land cannot be made to the trustees of the charity in the ordinary manner, it shall be lawful for the trustees of the charity, with the sanction of the said Board (such sanction to be certified under the hand of their secretary) (c), to take and purchase such land according to the provisions of "The Lands Clauses Consolidation Act, Sect. 27. 1845;" and for that purpose all the clauses and provisions of the last-mentioned Act with respect to the purchase of lands by agreement, and with respect to the purchase-money or compensation coming to parties having limited interests, or prevented from treating, or not making a title, and also with respect to conveyances of lands, so far as the same clauses and provisions respectively are applicable to the cases contemplated by this provision, shall be incorporated in this Act (d); and in all cases contemplated by this provision, the expression "the special Act" used in the said clauses and provisions of the said "Lands Clauses Consolidation Act" shall be construed to mean this Act; and the expression "the promoters of the undertaking," used in the same clauses and provisions, shall be construed to mean the trustees of the charity in question. Purchase of land. Power of board to authorize purchase. Scheme. Order merely authorizing purchase. Repeal. In cases of charities the incomes whereof ex (a) With regard to the application of charity funds in the purchase of land, see ante, pp. 278, 279. The Charit. Trusts Acts do not expressly empower the Charity Commissioners to make orders authorizing the purchase of land. Provisions with regard to the purchase of land are, however, frequently inserted in schemes established under sect. 2 of the Charit. Trusts Act, 1860, post, p. 558. In addition to this, sect. 15 of the Charit. Trusts Act, 1860, is wide enough to authorize a simple order for the application of the charity funds to the purchase of land, where such purchase is beneficial to the charity. Such orders are indeed frequently made. A valuation and report as to the land proposed to be purchased is required to be made by a surveyor on behalf of the charity, and to be submitted to the commissioners, together with a certificate by the solicitors of the charity as to the sufficiency of the title. (b) The words in italics are repealed by the Stat. Law Rev. Act, 1875; and by sect. 41 of the Charit. Trusts Amend. Act, 1855, incorporated trustees of any charity are empowered to purchase and hold lands for the purposes mentioned in this section without licence in mortmain. (c) Or other officer of the board authorized to act on behalf of the secretary: Charit. Trusts Act, 1887, s. 3, post. (d) These sections will be found in App. I., post. 28. Where the appointment or removal of any trustee, or any other relief, order, or direction relating to ceed 301. per any charity of which the gross annual income for the time being exceeds thirty pounds, shall be considered desirable, and such appointment, removal, or other relief, annum, the Master of the |