In April 2009 district councils in Cornwall, Durham, Northumberland, Shropshire and Wiltshire (and county councils in Cheshire) will be wound up and dissolved, with their functions being transferred to new unitary councils. To ensure that public money is properly protected during the transitional period (ie until 1 April 2009) directions have been issued which prevent all those councils from entering into specified transactions without prior approval.

This will include all dispositions of land, and contracts for the disposal of land (including options to acquire land by the council). Accordingly, any practitioner involved in a transaction with one of these councils before April 2009 needs to check that the necessary consent is in place (consents can either be ‘general’ or ‘specific’). Note that there is a confusing exemption that applies if disposals do not exceed £100,000. Bizarrely that does not apply to each transaction of £100,000 or less, but to the total value of all disposals of land by the council since 1 January 2007 – and, needless to say, the true value of all such disposals will only be known to the council itself. In practical terms, therefore, always assume that a consent is required (and ensure that a copy of the consent is then kept with the title deeds). © Practical Lawyer