Principal and Agent in church real estate

BlogrollAgent, Church Real Estate, Fiduciary, General Agent, Principal, Scope Of Authority, Special Agent, Third Party Liability, Utmost Care

More often than not, a member of your congregation will volunteer to act on behalf of the church to complete a task. In doing so, a fine line is drawn with regard to that person’s responsibilities and liabilities. In the contractual sense, that volunteer may have curtain expressed or implied authority to act on behalf of the church (the principal), as its agent. In General: According to the California Civil Code, “An agent is one who represents another, called the principal, in dealings with third persons. Such representation is called […]

Community Property

BlogrollChurch Real Estate, Commingling, Community Property, Dissolution Of Marriage, Prenuptial Agreement, Separate Property, Transmutation, Wills And Trust

After attending church Council meetings or services, I am often approached and asked questions by individual members. Other than general real estate concerns, the majority of the questions are in the area of estate planning, (Wills and Trust) and how they relate to community property. Although some get the concept of what community property is, when it gets down to it, they really don’t understand how it works and its effects on their estate. What follows is a brief overview of community property, which is the rule of the land […]

Commercial Tenant Abandoned Property California: What Churches and Landlords Must Know

BlogrollAbandoned, Church Real Estate, Disposal Of Abandoned Personal Property, Fixture, Personal Property, Trade Fixture

Commercial tenant abandoned property California issues arise frequently when a church tenant vacates the premises—whether at the end of the rental term or unexpectedly—and leaves items behind. In many cases, these belongings are simply forgotten and later retrieved once the tenant is notified. However, it is also common for a commercial tenant to intentionally leave property behind because they no longer want it or do not wish to move it. This raises an important legal question for churches and landlords: what obligations apply when a commercial tenant abandoned property California […]

Evicting Church Tenants

BlogrollChurch Real Estate, Commercial Tenant, Eviction, Landlord, Notice To Quit, Rental Agreement, Self-Help, Tenant, Unlawful Detainer

Unfortunately, it sometimes becomes necessary to evict a church tenant. This may result from failing to pay rent, or otherwise not abiding by the terms and conditions of the agreement. Regardless of the reason, the steps for a contested or necessary eviction are the same and must be followed precisely. An eviction or Unlawful Detainer of a church tenant follows the statutes set forth for a commercial tenancy which varies greatly from that of a residential tenancy. Please note that in California, it is the Sheriff’s department that does the […]

Restricted Donations

BlogrollAttorney General, Church Real Estate, Deduction, Donation, Fiduciary Duty, Internal Revenue Service, Restricted Donation, Tax Exempt

Churches, like all nonprofit organizations, rely upon monetary donations in order to carry out their basic functions. In particular, it is these donations that enable the church to literally keep its lights on. Similar to the article about members taking deductions for the donations they contribute; this article focuses on what the church may do with the funds it receives. Please note that this article does not address fundraising through Bingo or Raffles. Unrestricted Funds: In most instances, a member simply donates funds to be used towards the general operations […]

Removing Fixtures – from a church or otherwise

BlogrollAffixed To Land, Church Real Estate, Fixtures, Personal Property Tenant Improvements, Security Deposit, Tenant, Trade Fixture

Commercial tenant abandoned property California issues often arise when tenants make improvements to the facilities they rent—such as painting walls, installing new carpet, or mounting a video projector and screen for Sunday services. In most cases, the landlord church has no objection to these upgrades. The real conflict emerges at the end of the rental term, when the tenant wants to remove an expensive projector or other installed equipment, but the landlord believes it should remain as a fixture attached to the property. If the rental agreement is silent on […]

Real Property Fraud

BlogrollChurch Financing, Church Real Estate, Escrow, Foreclosure, Loan Modification, Misrepresentation, Mortgage Fraud, Title Transfer, Wire Fraud, Wire Instructions

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 […]

Church Financing

BlogrollChurch Bond, Church Financing, Church Real Estate, Endowment, Seller Financing, Unsecured Loans

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 […]