Disposal - Best consideration

Section 123 of the Local Government Act 1972 (A005/1)

Section 123 of the Local Government Act 1972 (.pdf format, 12 Kb)
A summary of Section 123 of the Local Government Act 1972.

Disposal of land for less than best consideration (A005/2/ A and B)

'A' - Local Government Act 1972 General Disposal Consent (England) 2003.

There are certain exceptions to the requirements of Section 123. These are contained in Department for Communities and Local Government Circular 06/03 and the Local Government Act 1972: General Disposal Consent (England) 2003.

'B' - Disposal of surplus land for less than market value (.pdf format, 27 Kb)
A report called 'Disposal of surplus land for less than market value' was approved at the Executive meeting on 28 October 2003. The report sets out the procedures for dealing with disposals of land for less than best consideration.

Competitive bids

The Local Government Ombudsman has issued guidance on seeking competitive bids and a copy of this can be found at Authority to dispose of property (A003/2).

Dealing with late, conditional or otherwise non compliant bids

Dealing with late, conditional or otherwise non compliant bids (A005/4)

The procedure for dealing with late, conditional or otherwise non compliant bids was adopted by Operations Sub Committee on 05 June 1997.

In summary, if a late, conditional or otherwise non compliant bid is higher than the highest compliant bid then the council could not be satisfied that it would achieve the best price if the late/ non compliant bid were rejected. To comply with the Ombudsmans advice and statutory requirements, it is recommended that in such cases, unless there is only a marginal difference between the highest compliant and the non compliant bids, all of the parties who have submitted bids, whether compliant or not, should be invited to submit further final bids by a specified date. It might be appropriate for those bids to be binding and not 'subject to contract'. If a long period has elapsed since the property was marketed it may be appropriate to re-advertise, though this would not be usual.

If a bid is accepted and then reduced or withdrawn before exchange of contracts then a decision has to be taken as to whether the second highest bid should be accepted or all bidders invited to submit further bids, or (exceptionally) the property re-advertised. The decision will depend upon the relative amounts of the bids and the time that has elapsed between submission of the bids, acceptance and then withdrawal or reduction. It is sensible to have flexibility so that appropriate action can be taken in each case. However, it is recommended that in such cases, the Leader / Deputy Leader be consulted before a final decision is taken.

View a copy of the Operations Sub Committee report and resolution (.pdf format, 24 Kb).

Further details

For further details can be obtained from:

Strategy Team
Property and Facilities
Environment & Economy

Tel: 01865 815665
Email: sam.team@oxfordshire.gov.uk

Or

Law and Governance
Chief Executive Office

Tel: 01865 323916
Email: fionnula.chamberlain@oxfordshire.gov.uk