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STEPS REQUIRED:
1. The Session decides it would be a good idea to buy, sell, or mortgage,
and it calls a meeting of the congregation for its approval.
2. If the congregation approves, the trustees (which may be the Session
in many cases) is charged with carrying out the wishes of the congregation.
[G-7.0402]
3. Presbytery must approve in writing the sale, mortgage, or other encumbrance
of its real property or acquisition of real property subject to an encumbrance
or condition. The presbytery must approve the lease of property used for
worship, or the lease of any other property leased for a period of more
than five years. [G-8.0501- 8.0502].
According to Standing Rule 15.70, “A request for such permission
to encumber, sell, or lease real property must be filed by the church
on approved forms in duplicate with the Stated Clerk at least 30 days
before the meeting of the Presbytery at which action is to be taken. The
Stated Clerk shall refer the request to the Committee on Ministry which
shall refer the request, along with a recommendation as to propriety,
to the Financial Management Committee, which in turn will recommend action
by the Presbytery.
The Stated Clerk
will make certain a copy of the application is on file at the presbytery
office. Blank copies of the form will be on file in the presbytery office.
A complete description
of the property to be bought or sold needs to be included in the formal
request. This can be a certified photocopy of the description in the deed,
or other legal documentation which can be made a part of the presbytery’s
permanent record.
Unless there is good
reason not to pay to have an appraisal completed (e.g. the value of the
property is judged to be low due to size, location, etc. such that paying
for a professional appraisal would cut substantially into the proceeds),
a property appraisal should be performed in order to ascertain a value
at which to list the property. Likewise, an appraisal should be completed
before property is purchased by a congregation, if one has not been secured
by the seller. The result of the appraisal shall be communicated in writing
to the Stated Clerk, and to the Financial Management Committee of the
Presbytery as soon as possible.
In the case of a purchase of property involving an encumbrance, the Committee
on Ministry and the Financial Management Committee will desire to see
the following before any recommendation can be made to the presbytery
(these items are included on the form to be submitted):
- Name of appriser(s)
- Amount of appraisal(s)
- Legal description of the property (copy of deed or survey)
- Attorney handling the matter
- Timeframe or other restrictions - Church’s indebtedness
- Financial statement for last two years
- Repayment plan
4. The Supreme Court of New York State must approve the sale. The Session
(or alternatively, by mutual agreement, the Buyer or Seller) will need
a lawyer to obtain this permission.
CONSIDERATIONS
Congregation (Session and/or Trustees): It is the congregations
job to list the property for sale, obtain the best possible fair price,
and carry forth the business of the sale in a manner advantageous to the
church and also respectful of our heritage and our Lord.
Presbytery (Committee on Ministry and Financial Management Committee [trustees]):
The Presbytery is responsible for the mission of the church throughout
its geographical area. The Presbytery's concerns are primarily to
protect the congregation and to preserve the overall mission strategy
of the presbytery. How would the sale of the property affect the future
ministry of the congregation? Of other partnering congregations? Of the
ministry potential of that area? Supreme Court.
The Court is concerned to prove that the parties selling a church property
have the legitimate authority to do so, and that the proceeds will flow
properly to the church organization and not to the benefit of any private
individuals.
revised 3/08
document references updated 03/08
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