Tag Archives: Church Real Estate

Real Property Fraud

The information below pertains only to real property as opposed to personal property. As a property owner, you should be diligent in regard to your property and finances. What follows is important information provided by the FB Wire Fraud: All parties to a real estate transaction are potential targets of wire fraud and may lose hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, it is strongly […]

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Church Financing

Some churches belong to large denominations and have access to funds that are lent through Foundations, Endowments, or other types of funding sources. Regardless of its membership, most churches find it extremely difficult to obtain financing from standard banking institutions. This is generally because most standard banks considering church loans to be too risky based solely on the fact that the loan is based on either the stated income or the equity in their real property, if available. Private Mortgage Companies: Private mortgage type companies, or private lenders, (sometimes referred […]

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Clouds on Title (Ownership) to Real Property

Real Property values will always fluctuate over time, but the one that is often overlooked is the marketability of the Property.  Every contract for the conveyance of Real Property contains an implied warranty that the Title will be delivered reasonably free from doubt of hazards to litigation either in fact or law. Although Title need not be perfect, it must not expose the reasonable buyer to the hazards of litigation. One sure way to inhibit your ability to sell your Property is to allow a cloud on the Title to […]

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Security Deposits

Unlike residential security deposits, commercial deposits held to secure a rental agreement can be negotiated between the parties. The laws governing residential property and the handling of security deposits are long and tedious. Commercial tenancies however are much more negotiable in that the parties may mutually agree on any amount to be designated as security. Security Deposit: California Civil Code Section 1950.7 establishes that a commercial landlord may use a security deposit to remedy monetary defaults, to repair damages to the premises caused by a tenant, and to clean the […]

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Solar Panels

Solar Panels and the Church Solar panels on church roofs are becoming more and more popular. For starters, the electricity bill at any given church can be astronomical, especially in the summer. Churches are often looking to cut cost in order to be good stewards of their property and finances. Saving money, and possibly profiting from solar panels may be a good alternative, but there are always risk involved. Cost: Always of primary concern, one must consider the cost of taking advantage of a large roof area in order to […]

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Conditional Use Permits

Conditional Use Permits As with most things in real estate, especially when dealing with Special Use Property, it all comes down to highest and best use. Both of which have their roots in the zoning ordinances. In other words, what uses are permitted on the property. Sometimes a Special Use property is permitted by right, or “Grandfathered”. Other times, a Conditional Use Permit is required. Although a permit sounds simple enough, don’t let the name fool you. A Conditional Use Permit can be a long and expensive process with no […]

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Church’s and the Attorney General

California Attorney General California has given great over-sight to the Attorney General’s office to regulate and protect the assets of charities, including churches and religious organizations. Since nonprofit organizations are established to perform a particular purpose, the Attorney General makes sure that the organizations assets are used for that intended purpose. Religious Organizations: Religious corporations classified as religious by the Secretary of State are automatically exempted from registration and not required to register or file annual reports with the Attorney General’s Registry of Charitable Trusts. However, the Attorney General does […]

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Premises/Trespasser Liability

Premises/Trespasser Liability Considering the current trend, trespass on church property has been steadily increasing. Whether your church is accepting of those individuals or not, there are a few things you need to know regarding your liability. First and foremost, your church has the legal duty to implement and maintain measures which reduce the foreseeable risk of harm that may come to others; trespassers or otherwise. Liability: When someone suffers and injury, regardless of whether they are a tenant, contractor, church member, visitor, or trespasser, your church may be liable. Although […]

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How Zoning Code Effects Church Property Use

Municipalities establish a General Plan which contains the overall land use scheme by restricting some areas to particular usages. These governmental actions must not be arbitrary, capacious (unreasonable) or vague. Zoning regulations, or codes, must be reasonable and bear a rational relationship to the objectives of the city, while taking affirmative measures to provide housing for all. Municipalities have been given reasonable control over the private use of land from the state through enabling statutes for the protection of the health, safety, morals, and general welfare of its citizens. Legal […]

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Must a Church Apply for Tax-exempt Status

Does a Church need to be a registered 501 (c)(3) Tax-exempt Organization? Although not all non-profit organizations fall within section 501(c)(3) of the Internal Revenue Code, religious organization do. As such, this article focuses only on those 501(c)(3) organizations and whether or not a church must apply for tax-exempt status.   Defined: According to the IRS, to be tax-exempt religious organization, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. […]

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