Insights
Selling church property is a significant decision, and it can feel like an overwhelming process. Whether selling part or all of a property, churches must approach the process thoughtfully and legally to protect their mission and assets. Here is a basic step-by-step guide:
Determine Property Value
Begin by evaluating the zoning and development potential of your property. An experienced appraiser can provide accurate market value, ensuring the church receives fair compensation.
Check Title and Legal Status
A clear title is essential. Confirm there are no liens, unpaid taxes, or deed restrictions. Ordering a title report early can help identify and resolve potential issues before listing.
Assemble a Team
Form an internal church committee to oversee the process. Engage a real estate broker and attorney who specialize in church or nonprofit property sales to guide negotiations and legal compliance. Foundry Commercial’s Mission Property Group is a team of real estate experts, focused on religious, education, and non-profit properties. They’ve assisted churches across the U.S. with the selling process.
Review Governance and Legal Requirements
Review the church’s bylaws to determine who must approve the sale. Some states require court or attorney general approval, especially for religious or charitable organizations. Ensuring full compliance helps prevent legal delays.
Plan for Costs
Selling property involves expenses. Budget for brokerage commissions, legal and title fees, taxes, and other transaction-related costs to avoid surprises.
Prepare for the Future
Before finalizing the sale, develop a clear plan for how the proceeds will support the church’s long-term mission. Transparency with members and stakeholders fosters trust and alignment.
Selling church property is complex but manageable with the right planning and professionals in place. By following these steps and seeking expert guidance, churches can navigate the process confidently while safeguarding their legacy and mission.