Charity Property: Ensuring Legal Ownership and Control

It is vital for charities to closely monitor property portfolios. Charities should ensure that their real estate assets are owned by the appropriate legal entities and that they retain clear and enforceable control over their assets. Charity trustees also have a duty to manage the charitable assets, including by ensuring that they are owned by the appropriate legal entities and that they retain clear and enforceable control over those assets.

• Charities should ensure proper oversight over their real estate assets.
• The charity sector is particularly vulnerable to issues such as lack of proper documentation or land not being held under the correct legal name.
• Charities should consider undertaking a full audit of their properties to avoid these issues in the future.

A failure to properly manage and control real estate assets can lead to significant governance, financial and reputational issues or to potential investigations by the Charities Regulator. These issues can also frustrate or prevent sale or development projects. We discuss practical steps charities can take to safeguard property ownership and control.

Common property issues facing charities

Through our experience advising a broad range of charitable organisations, we regularly encounter a number of recurring issues regarding property portfolios. These include:

• Unregistered title: Properties acquired many years ago may not have been properly registered with the Property Registration Authority, now known as Tailte Éireann, making it difficult to prove legal ownership.
• Outdated or inaccurate ownership records: Charities may discover that properties are still registered in the name of former trustees, legacy entities, or related religious or voluntary bodies.
• Lack of written documentation: In some cases, arrangements regarding occupation or use of property are informal or undocumented. This scenario can lead to uncertainty around legal rights and obligations or in some cases, ambiguity on which party is the beneficial or legal owner.
• Insufficient planning and building regulations compliance documents: Construction projects over the years may be completed without the production of appropriate planning or building regulations compliance documents, which should be produced and placed with the title deeds.
• Missing or incomplete trust deeds: For charitable trusts, the absence of up-to-date or complete trust documentation can make it unclear who has authority to manage or dispose of assets.
• Restricted use or complex title conditions: Historic donations or bequests may come with use restrictions or covenants that are not fully understood or documented.
• Failure to reflect organisational changes: Where a charity has incorporated or merged with another organisation, property title and beneficial ownership may not have been updated to reflect the new legal structure.
• Beneficial Ownership Register Non-Compliance: Charities holding property in trust must comply with beneficial ownership rules. Many organisations are unaware of their obligations in this area. For further information on these obligations, read our previous article on the topic.
• Unauthorised Use of Properties: Charities may find that certain properties are being used for purposes contrary to those originally intended or contrary to the owner’s charitable purposes.
• Missing title deeds: Some or all of the title deeds may be missing. Locating missing title deeds may take time or, if they are irretrievably lost, need to be reconstituted.

These issues can result in delays, disputes, or difficulties in refinancing, leasing, or disposing of property. In addition, they may also have regulatory and governance implications.

The case for a property audit

Given the evolving regulatory environment and the risk exposure posed by unclear property arrangements, charities may benefit from legal review of their property portfolios. A property audit can help to:

• Confirm ownership and title documentation
• Identify any gaps or risks in title, control and governance
• Ensure compliance with the Charities Regulator’s guidance and legal requirements, and
• Support future planning, asset optimisation, development and strategic decision-making.

How we can help

We have recent, significant experience advising charities on property ownership, title rectification, trust structures and related governance issues.

We offer a tailored, quick property audit service for charities seeking reassurance and clarity over their real estate holdings. If your organisation is unsure whether its property portfolio is fully aligned with legal and regulatory requirements or that the title is in order, our Charity Law & Not-for-Profit team and Real Estate team would be happy to assist.

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The content of this article is provided for information purposes only and does not constitute legal or other advice.