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THE PROPERTY HANDBOOK
T H E P R O P E RT Y
H A N D B O O K

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THE PROPERTY HANDBOOK
THE PRESBYTERIAN CHURCH
PROPERTY TRUSTEES
THE PROPERTY
HANDBOOK
A GUIDE
for Parishes, Presbyteries & UDCs
when dealing with property
2nd edition 2010

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THE PROPERTY HANDBOOK
TABLE OF CONTENTS
››
Introduction Legal background, status, explanation of terms, 5
important first principles
Section 1 Purchase of property 11
›› GST, trustees’ fees,rates
›› Minister housing requirements
Section 2 Borrowing by parishes 19
Section 3 Alterations and extensions or new buildings 21
Section 4 Sale of property 22
Section 5 Leasing property 27
Section 6 Use of property funds 29
Section 7 Gifting property 31
Section 8 Gifting and loaning of congregational funds 33
Section 9 Lottery Grants Board applications 35
Section 10 Duties and responsibilities of decision makers 37
›› Presbytery / UDCs
›› Church Property Trustees

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THE PROPERTY HANDBOOK
Application forms for the following purposes are available on request from the
Secretary to the Trustees, phone (04) 381 8290 or 0800 424 872, or email trustees@
presbyterian.org.nz:
›› Purchase property
›› Sell / lease property
›› Alter / extend / erect building
›› Spend / gift / lend capital (property) funds
›› Borrow funds
›› Apply for a Lottery grant

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THE PROPERTY HANDBOOK
INTRODUCTION
Two trusts
Properties belonging to the Presbyterian Church in New Zealand are vested in two
separate trusts. The Waitaki River (North Otago) is the geographical boundary for the
two trusts.
North of the Waitaki River, property is vested in The Presbyterian Church Property Trustees.
South of the Waitaki River, property is vested in the Otago Foundation Trust Board,
although the Synod of Otago & Southland handles property approvals.
This handbook is based on the procedures of The Presbyterian Church Property Trustees.
Refer to the Synod of Otago & Southland for its specific requirements.
The legal background
Three Acts of Parliament establish the framework and principles of operation of The
Presbyterian Church Property Trustees. Under the first Act, The Presbyterian Church
Property Act 1885, The Presbyterian Church Property Trustees (Church Property
Trustees) are the registered owners of, and are legally responsible for, all Presbyterian
Church property located north of the Waitaki River.
The other two acts, The Trustee Act 1956 and the Charitable Trusts Act 1957, provide
binding legal principles under which the Church Property Trustees operate.
All property transactions are managed through the Church Property Trustees.
Sometimes the Trustees obtain special legal advice on rare and difficult transactions.
The Book of Order is the Presbyterian Church’s official rule book, and covers all
activities of the Church. It explains the responsibilities of church members, and sets out
the procedures for each area of governance and management. Every presbytery, parish
and church member is obliged to comply with it, except for members of co-operative
ventures in circumstances where the Guide to Procedures in Co-operative Ventures
applies instead.
Chapter 16 of the 2006 Book of Order deals with property and finance matters.
The Book of Order can be viewed on the Presbyterian Church website, www.
presbyterian.org.nz.
The Guide to Procedures in Co-operative Ventures can be viewed on the Uniting
Congregations website, www.ucanz.org.nz.

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THE PROPERTY HANDBOOK
Status of this handbook
The Property Handbook is provided for guidance only. The formal and binding
requirements of property transactions are detailed in the legal documents identified. If
there is any doubt, consult your parish’s solicitor.
Explanation of Terms
attestation clause
Certificate of Title
church council
Church Property Trustees
execution
fiduciary duty
instrument of transfer
Joint Regional Committee
Formal statement describing the manner in which
a legal document is signed. The attestation clause
for documents executed by the Church Property
Trustees reads:
“The Common Seal of The Presbyterian Church
Property Trustees was hereunto affixed and these
presents signed by two of the said Trustees”.
Record which identifies a specific property by legal
description, registered location, size and the owner.
Records of properties are now electronically recorded
by LINZ (Land Information New Zealand).
Governing body of a congregation. It may be called a
session or parish council or other name.
Shortened form of The Presbyterian Church Property
Trustees. Often abbreviated to CPT.
Act of formally signing a legal document. For
Church property matters, this is done by affixing
the Common Seal of The Presbyterian Church
Property Trustees.
Responsibility of a trustee to act without personal
gain and independently from personal interest.
Formal document upon which the details of a sale
and purchase of property is entered for recording in
the Land Transfer Office.
Often called JRC. Regional body that oversees cooperative
ventures on behalf of partner Churches.

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THE PROPERTY HANDBOOK
LIM
loan agreement
manse
mortgage
Land Information Memorandum. A report issued by
a local authority, which contains information about a
property.
Formal document in which all the terms and
conditions pertaining to the money being borrowed
must be disclosed.
Parish residential property which provides
accommodation for the minister and family.
Legal document which sets out the terms and
conditions upon which the security for any borrowing
is effected against property.
partner Churches Other denominations in a co-operative venture –
mainly Methodist and/or Anglican.
presbytery
Regional body of the Presbyterian Church which has
oversight of all Presbyterian parishes in that area.
sale & purchase agreement Legal document in which all the terms and conditions
of sale are recorded, signed by the purchaser and
the vendor at the time of agreement. Once signed
by both parties, the agreement becomes a binding
contract, subject only to the conditions stated in
the agreement.
title
The Trustees
UDC/UCC
valuation
vendor
Yearbook
See Certificate of Title. This identifies ownership of
a property.
For the purposes of this handbook, it means The
Presbyterian Church Property Trustees.
Union District Council or Uniting Church Council: a
council appointed by the Presbyterian and Methodist
Churches to jointly carry out the equivalent duties of
a presbytery in an agreed region.
Report from a registered valuer, stating the condition
and current market value of the property under
consideration.
Owner of the property which is being sold.
Directory containing contact details for every parish,
minister and nationally appointed organisation within
the Presbyterian Church.

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THE PROPERTY HANDBOOK
Important
First
Principles
Principle 1
Everyone making decisions about property or finance within the Church is a “trustee.”
Elders, managers, deacons, presbytery/UDC members and the Presbyterian Church
Property Trustees (the Trustees) all have responsibilities under The Trustees Act 1956
(Refer page 27).
• We all are required to act with care and prudence, in a trustee capacity.
Principle 2
We are a Church – not a collection of independent congregations
• Parishes are under the oversight of presbyteries/UDCs, and the Trustees.
• The necessary approvals must be obtained before action is taken. For co-operative
ventures, the partner Church(es) should also be consulted.
Principle 3
Our decisions must keep faith with the long-term interests of the whole Church.

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THE PROPERTY HANDBOOK
The congregations of the future will inherit our choices.
The 2008 General Assembly endorsed the principle that all property transactions
should serve the purposes of God’s mission. The Assembly adopted guidelines which
the Church Property Trustees were asked to take into account when considering
applications in relation to parish property proposals.
All applications to the Church Property Trustees must now be accompanied by responses
to supplementary questions that are based on the Assembly guidelines.
These requirements apply to all property transactions, including the purchase, sale or
leasing of property, and to major building projects.
For any proposal, the congregation is asked to provide evidence of its financial
sustainability, to explain how the proposal fits into the congregation’s mission plan,
and to demonstrate how this project will contribute to God’s mission and the growth
of the church.
The presbytery has to assess how realistic the congregation has been in its responses
to the supplementary questions, and explain how the proposal fits into the regional
mission strategy.

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THE PROPERTY HANDBOOK
SECTION 01
Purchase of property
General guidelines
Ask yourselves how this purchase will fit the mission of the congregation.
Once there is a written clear answer to this question, the rest should flow quite easily.
Allow sufficient time, and consult as early as possible with the next people in the chain.
• Allow at least two months to prepare your application, and to obtain the approval of
the congregation, presbytery and the Trustees.
• Talk early on to your presbytery/UDC and Secretary to the Trustees about your
general plans and time frames. As each step comes closer, it will help to make
early contact (even informally and in confidence) to alert them that decisions are
underway. Challenging or unusual proposals may take extra time.
• Find out from your presbytery clerk when Presbytery’s Property Committee
meets, as generally this committee will consider the application and then make
a recommendation to presbytery. Presbyteries normally meet monthly. Some
property and finance committees are authorised to act as a commission of
presbytery for property transaction applications. You should have your application
to this committee, through the presbytery clerk, at least a week before it meets.
• The Trustees generally meet monthly (apart from the Christmas break), and
applications need to be received at least a week before the meeting, in order for the
documentation to be summarised and circulated with the agenda papers. Contact
the Secretary to the Trustees for details.
• It may save time if you can make direct contact with the Church Architecture
Reference Group regional convenor (see the Yearbook) before your plans are well
advanced, and before your application goes to Presbytery.
Remember this will be an asset held in trust for the congregation of the future as well
as the present.
All parties need to be involved in the decision-making. The asset does not belong to
just one little group of the congregation. It is an asset, to be held in trust, for the benefit
of many others.

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Do the thinking before you look, and again before you purchase.
Talk through all the issues (purpose, function, location, financing, time frames as well
as structure, price, legal title etc) before you start looking to purchase. It would be
prudent to review these guidelines again as you come to complete a purchase on a
particular property.
Set the necessary authorities in place as you proceed.
Try to obtain approval to act (maybe within constraints) ahead of time. You will need
formal approval from the congregation to proceed. It is usual for a congregation to
delegate the purchasing process to a small subcommittee. If you are planning to borrow
money for the purchase, you will also need to follow the borrowing procedures set out
in Section 2 of this handbook.
See the checklist at the end of this section to help you through the process.
To purchase a property you need the approval of:
• Church council (session / parish council)
• Congregation
• Presbytery/UDC
• Church Property Trustees
Ask the Trustees’ Office for the relevant application forms and supplementary
questions. Email trustees@presbyterian.org.nz for electronic copies.
Note: All Church Property Trustees’ property approvals are valid for six months.
Approval may be extended to 12 months in exceptional circumstances.
Suggested selection criteria
• Is the property within the price band approved by the congregation?
• Is the location suitable for the building’s intended purpose?
• Is it located near the parish office and main worship centre?
• If this is to be a manse, is it near to schools?
• Is it convenient to public transport?
• Is the property in good condition?
• Are there any deferred maintenance or ongoing maintenance issues?
• Are there any conditions associated with the title?
• Does it have good resale potential (particularly for a manse)?
• Are there any health and safety issues?
• Does the local authority LIM report raise any concerns?

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If you are looking to purchase a manse, include the requirements on page 12.
Completing Agreement for Sale & Purchase
• Don’t sign anything until you have taken advice from your parish solicitor.
• Name “The Presbyterian Church Property Trustees” as the “Purchaser”.
• Include this clause: “conditional on approval of The Presbyterian Church
Property Trustees”.
• Where borrowing is required, insert this clause: “conditional upon approval to
borrowing on terms and conditions acceptable in all respects to the parish”.
• Consult the Secretary to the Trustees about authority to sign the Agreement for
Sale & Purchase.
Follow-up after Church Property Trustees’ approval
Consult your parish’s solicitor when you start looking for a property. The solicitor will
ask the parish to sign a letter of engagement. (The Church Property Trustees do not
engage the solicitor.)
• Do not sign anything (especially the sale and purchase agreement) without your
solicitor’s approval. Signing should be done by two authorised parish representatives.
• Your solicitor will ask for the purchase funds in advance of the agreed settlement
date. If the funds are held in your Presbyterian Investment Fund property account,
ask the Trustees’ Office to transfer the required money to your parish bank account
well before it is needed. If you are borrowing a portion of the purchase price,
ensure the lender knows when, and where, to transfer the funds. (If borrowing is
required to fund the purchase, prior approval from the Church Property Trustees is
essential. Refer to “Section 2: Borrowing by parishes”.)
• All property valuations must be no more than 90 days old at the time of signing a
sale and purchase agreement.
• Your solicitor will arrange for the registration of the transfer of ownership, which
involves sending an Authorisation and Instruction (A & I) legal document to the
Church Property Trustees for signing under Common Seal. Advise your solicitor that
a copy of the signed sale and purchase agreement, and a copy of the Certificate of
Title, must accompany the A & I form.

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Are there ‘fast track’ possibilities?
Yes. Sometimes a property becomes available in a rush, particularly if there is a
tender deadline. And church court time frames can take ages and ages . . . .
The key is preparation, early warning signals, and the earliest possible attention to
written documentation – especially mission statements.
When there is genuine urgency, phone calls, faxes and emails will help
meet deadlines.
It is difficult to ‘fast track’ proposals which are challenging or unusual.
For the Church Property Trustees contact:
The Secretary: ph 04 381 8290 or 0800 424 872
fax 04 801 6001
email trustees@presbyterian.org.nz

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THE PROPERTY HANDBOOK
CHECKLIST FOR ROUTINE
PROPERTY PURCHASES
Note: Keep copies of everything for your parish records
p Approval ‘in principle’ by church council.
p Agreement ‘in principle’ by congregation.
p Working party authorised to proceed.
p Congregation mission plan prepared, together with statements relating property
purchase to the mission.
p Application prepared for presbytery/UDC and Church Property Trustees.
p Criteria checklist prepared, against which to measure potential properties. (This
section of the handbook has suggestions. Add to this any other factors special to
your situation.)
p Will you need to borrow money? If so, congregation, presbytery/UDC and the
Trustees all need to give formal approval.
p Engage a registered valuer to provide a market value report on your preferred
property.
p If your preferred property is for sale by tender, be prepared to act quickly to meet
tender deadline.
p Negotiate and settle purchase price.
p Unless you already have confirmed approval from the Trustees, enter into a
conditional agreement for sale and purchase, in consultation with parish solicitor
(see specifications in this section).
p Alert the Church Property Trustees.
p Unless a small group has delegated authority (preferable), you may need to place a
proposal before congregation, to gain final approval. Ensure the details are recorded
at each stage.
p If not already done, complete an ‘application to purchase’ form (request a printed
or emailed copy from the Trustees’ office), and forward it together with all other
required documents to the presbytery/UDC. (Presbytery will complete its section
and forward everything to the Church Property Trustees.)
p Before settlement day, remember to ask the PCANZ insurance administrator to add
the new property to your parish’s property schedule.

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GST
• No GST implication for sale and purchase of residential property e.g. manses.
• GST is involved with all other Church property.
For the purposes of the Goods and Services Tax Act 1985, the purchaser/seller of the
property in question is the Trustees. Ask your solicitor to issue the settlement statement
(and GST invoice) in the name of “The Presbyterian Church Property Trustees” (not in
the name of the parish.)
For a property sale, the Trustees will deal with the actual sale price (but not associated
costs) as an input in their GST return, and the amount involved when paid will be
deducted from the sale proceeds.
The sale of gifted property is exempt GST pursuant to Section 14(1) (b) of the GST
Act 1985. Proof of gifting must be provided. Parishes should take care to advise the
Secretary to the Trustees of the original price of all property so that the correct GST
liability can be calculated.
The Trustees’ GST number is 55 228 752.
Trustees’ Costs
Administration costs and legal fees are incurred by the Trustees in handling property
transactions on behalf of parishes. Parishes will be invoiced for these as follows:
Sale or purchase of property - value over $250,000 $250
Sale or purchase of property - value $50,000 - $250,000 $150
Sale or purchase of property - value under $50,000 $100
All other routine transactions $100
Where transactions involve extra legal costs, these costs will also be charged to the parish.
In special circumstances, fees may be reduced or waived.
Rates
If you purchase a residential property (such as a manse), you must pay rates on it.
If you purchase a church, or another building which will be used mainly for religious
purposes (such as a hall), the property should be largely exempt from local government
body rates. Don’t assume this will happen automatically. Check with your local body
and, if necessary, apply for an exemption. This should be done as soon as the property
changes hands.
If you need advice on a particular property, contact the Secretary to The Trustees.

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Minister’s housing requirements
The Church’s regulations on housing for ministers are set out in the Conditions of Service
Manual, which is a supplementary provision to the Book of Order. Further details are in
the Accommodation for Ministers guidelines. (See the Presbyterian website.)
You may provide accommodation for your minister by:
• owning a house of an approved standard
• providing an accommodation allowance to the minister *
• leasing a house from an independent owner
• leasing a house from the minister **
There will be taxation implications for the minister in respect of the amount paid as rent.
Consult the Secretary to The Trustees if you need advice.
* If the minister is to be paid either an accommodation allowance or rent, it should be
the lower of the market rental for a suitable property within an appropriate radius of
the main worship centre or main site of the ministry, or the cost of the mortgage on a
house owned by the minister. Presbyteries often set guidelines.
** Leasing a house from the minister is the least preferred option, and there is a risk
that IRD will challenge it. In any event, the rental should be established having regard to
market rental prices in the area.
The manse should be within a reasonable radius of
the main worship centre of the congregation.
Exceptions to this must be approved by congregation and presbytery/UDC.
What kind of accommodation?
Congregations should provide attractive, appropriate accommodation for their ministers.
Minimum requirements for a manse
• Adequate living space which is separate from the space used for church activities
• Facilities for offering hospitality
• A study/office with adequate shelving unless this is provided elsewhere
• A washing machine and a refrigerator with adequate freezer space
• Floor coverings in all rooms
• Wardrobes in all bedrooms

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• Drapes or blinds
• Adequate heating for all living areas and the study
Your manse needs to be safe
Congregations with property (including a manse) have responsibilities and liabilities
for these. All practical steps should be taken to eliminate, isolate and minimise any
potential hazards.
Refer to the Risk Management Handbook provided free by the Church’s insurers, or call
the Church Property Trustees.
For further information, see www.presbyterianworkingsafe.org.nz.
Safety checklist
• Fencing, paths, steps, staircases and railings, decking and verandas are sound
and free of obstructions.
• Exterior lighting is installed as appropriate.
• Interior wiring, plugs and appliances are safety tested.
• Hot water temperature is appropriate.
• Smoke detectors are installed and working, and emergency exits available.
• Ensure there is an alternative exit from upstairs in the event of a fire.
• Secure storage for dangerous substances.
When thinking of safety, anticipate that children will visit the manse, even if
the current manse family itself does not have children.

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THE PROPERTY HANDBOOK
SECTION 02
Borrowing by parishes
Trustees’ discretion
All borrowing is at the absolute discretion of the Church Property Trustees. This includes
a capacity to vary the routine conditions in exceptional circumstances, including the
refusal of authorisation of applications.
Limits on borrowing
• Maximum of 50% of the cost of a project may generally be borrowed.
• Loans on low or nil interest are included in this condition.
• The borrowing term is limited to a maximum of 15 years.
Why there are limits
• To ensure wide parish buy-in to proposals.
• To ensure current parish members do not overburden future members.
• To prevent over-commitment.
Required approvals
• Whole-hearted congregational support of the proposed borrowing, including formal
voting of 80% support at the relevant congregational meeting.
• Formal presbytery/UDC endorsement of the proposal to borrow.
• Presbytery/UDC assessment of the viability of the proposal, including capacity to
service the borrowing.
Urgent proposals
In exceptional circumstances, the Trustees will consider urgent proposals, under
stringent conditions. Contact the Secretary to the Trustees for details.
Legal issues
Your solicitor will prepare a Memorandum of Mortgage. It will include a clause limiting
liability to the property over which the loan is secured. It should read something like this:
“The liability of the Trustees under the terms of this Memorandum of Mortgage shall be
limited to the property as set out in the schedule hereto, and shall not constitute a debt
payable by the Trustees or their successors in office out of any other fund or property.”

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Presbyterian Savings and Development Society
This organisation is a common source of mortgage money for churches. If your
application to borrow is approved, and you are using PSDS, a copy of the letter of
approval is sent to PSDS who will arrange the necessary mortgage documents for the
Trustees to execute.
Suspensory loans for pre-schools
Government may advance loans of up to 90% of the cost of a preschool project, but
will require full repayment within five years should the project fail. The Trustees will
consider such applications on the following basis:
• Full business case, including assessment of neighbourhood preschools.
• Contingency plan for repayment that does not impact on core parish mission.
• Presbytery/UDC approval of application, and of liabilities incurred.

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THE PROPERTY HANDBOOK
SECTION 03
Alterations and extensions
or new buildings
The guidelines for purchasing a property also apply to substantial structural alterations
to a church property, or to erecting a new building on church property.
Refer to Book of Order Chapter 16, and its Supplementary Provisions, for the regulations
governing this process. If the building project is a major one, presbytery must obtain
a report from the Church Architecture Reference Group before it gives approval. It
may save time if the congregation makes contact with the nearest Reference Group
representative early in the process.
The Book of Order and its supplementary provisions may be viewed at www.
presbyterian.org.nz.

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THE PROPERTY HANDBOOK
SECTION 04
Sale of property
How will the sale of this property fit the mission of the congregation?
Presbytery/UDC and the Trustees will want to know this, and it will clarify your thinking
if you answer it at the beginning.
Are there any special trusts e.g. bequests attached to the property which may
hinder or prevent its sale?
Remember that the property you have is an asset received ‘in trust’ from the past
congregation.
This means there may be limits on what you can do with it, and with the proceeds
from the sale. If the property was gifted to the congregation, any conditions associated
with the original gift must be fulfilled. Any difficulties should be resolved before the
sale goes ahead.
Sometimes, the wider local community in which a surplus church is sited (particularly
in rural areas) may have strong views about what should happen to it. Appropriate
consultation with the community can help avoid negative publicity. Remember that
church property is a trust from all the past members of your congregation, going right
back to its establishment. The assets have been given in the expectation they will
continue to be used for the mission of the Presbyterian Church.
Property can be sold if:
• it is no longer needed - but there may be limitations on what can be done with the
proceeds. These are set out in Section 6 of this handbook.
• you wish to replace it with a property which will better fulfil the mission of the
church – in which case you need to consider the objectives of both the sale and
the purchase, and comply with the regulations in both this section and the previous
section on purchasing property.
The proposal must have the approval of the church council, the congregation,
presbytery/UDC and the Trustees.
It pays to consult with, and get approval from, these bodies as early as possible in the
process. Remember: at each decision-making stage there needs to be a formal written
record. (See the application for approval to sell form.)
A check list to guide you through these steps is given at the end of this section.

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Before you sign a contract, you must:
• Either gain conditional approval from the Trustees, based on the valuation before
you start (giving a minimum price you can accept)
• Or make your sale agreement subject to the approval of The Presbyterian
Church Property Trustees.
The Trustees prefer the conditional sale method as it allows for rapid action when a
purchaser is found.
You must have a valuation
You will need to submit a recent market valuation of the property, undertaken by a
registered valuer, as the Trustees have to be sure a reasonable price is being received.
(Rating valuations or estimates by real estate firms are not sufficient.) It pays to obtain
a valuation early in the process, so that you know the likely sale price band. Valuations
must be no more than 90 days old at the time of signing a sale and purchase agreement,
so you may need to ask your valuer to provide an update if there is a lengthy period
between gaining approval to sell and finding a buyer.
A word about real estate agents
Parishes frequently use real estate agents to market the property.
• Most agents want a sole agency. It is prudent to invite several proposals before
making a decision.
• If you do decide to use a sole agency, then your contract (Sole Agency Agreement)
with them should be for a short duration e.g. 60 days. This time limit must be
written into the contract.
• If you sell a property while there is a sole agency agreement in operation, you will
have to pay the agent’s fee even if they had nothing to do with the sale.
• It is good practice to have your parish solicitor approve the proposed agency
agreement before you sign it.
When you find a purchaser
You may sign an agreement to sell BUT it must be conditional on the approval of the
Trustees, unless you already have that approval. The wording required is “conditional
on the approval of The Presbyterian Church Property Trustees.”
If you already have conditional approval from the Trustees, then your agreement
must comply with that approval in all respects, otherwise you must sign a conditional
contract and go back to the Trustees for a new approval.
Does the agreed price include GST, or is it plus GST if applicable? Make sure you cross

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out on the agreement the option which does not apply. (If you overlook this small print,
the agreement will automatically include GST.)
Do not sign anything until your parish solicitor has approved it. Once you have signed,
the contract is binding.
After the sale
• Your parish solicitor will handle the settlement.
• Your solicitor will prepare a Memorandum of Transfer and send it to the Secretary
of the Trustees for execution.
• Your solicitor will repay any outstanding mortgages, and other costs, then forward
the net sale proceeds to the Trustees. These funds will be held in a Presbyterian
Investment Fund property account in the congregation’s name.
• If GST is payable on the sale, the Trustees will pay this, from the funds deposited in
your PIF account.
• The Trustees will invoice the parish for administration costs. (See page 16.)
• There are limits on what you can use this money for. These are set out in Section 6.

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Checklist for routine Property Sales
p Place proposal before church council. Record the details at all stages.
p Approval by church council.
p Agreement by congregation.
p Sub-committee set up to oversee the sale and to consult parish solicitor. If the
land was gifted to the church, check that there were no conditions in the original
bequest about selling the property.
p Update the congregation’s mission plan and statements of how the sale relates to this.
p Ask the Trustees’ Office to send the relevant application forms, and supplementary
questions.
p Have the property valued (by a registered valuer) before placing the property on the
market. Include a copy with your application to sell. Note: Minimum acceptable sale
price is commercially sensitive, and should be kept confidential as far as is possible.
Valuations must be no more than 90 days old at the time a sale and purchase
agreement is signed, so you may need to have it updated if the property does not
sell within a short time.
p Approval of presbytery and Trustees (in principle, if necessary, although this will
require subsequent final approval.)
p Appoint real estate agent(s) to market the property (if required). A sole agency must
have a definite end date.
p Negotiate and agree sale price and conditions. Consult your solicitor before signing
anything. There should be two parish signatories.
p Enter into a conditional agreement, in consultation with your parish solicitor, unless
the sale complies with the approval already obtained from the Trustees.
p Check the small print relating to GST, to make it clear whether the price includes
GST, or ‘plus GST if applicable’.
p Parish solicitor handles the settlement of the sale. (Warn your solicitor to send the land
transfer documents to the Trustees’ Office at least a week before settlement date.)

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Leasing property
Leases are involved when a congregation:
• needs to rent additional property for its use
• decides to lease out a property, or part of it, for income.
First step
How will this lease fit the mission of the congregation?
This is especially important for a lease of over one year.
Before you enter into either kind of lease you must have approval from
• Church council.
• Congregation (if the lease is for more than one year).
• Presbytery/UDC.
• Church Property Trustees.
Note: Renewals of leases require the same approvals as the original lease. Allow time
for these to be obtained.
Application forms are available from the Trustees’ Office. Email trustees@presbyterian.
org.nz or call the Secretary on 04 381 8290.
Legal points
Any lease document must be in writing and prepared (or approved) by your parish solicitor.
The lease must include:
• The Trustees as lessee (if you are renting additional property) or lessor (if you are
receiving money for renting out your existing property)
• The legal description of the property
• The time-length of the lease
• The amount of the rental
SECTION 05
• Any renewal rights and obligations
• A clause limiting liability of the Church Property Trustees to the property being
leased. (See next page.)

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• An inventory of chattels
• It may include a bond payment.
If the lease is a residential tenancy, you must also ensure you understand your obligations,
and abide by the Residential Tenancies Act. Copies are widely available together with
standard tenancy agreements e.g. at PostShops, or online at www.dbh.govt.nz/tenancy.
“Limitation of liability” clause
This clause is inserted because the Trustees legally own a great deal of property on behalf
of the Presbyterian Church – most of it property being held for other congregations. It
is important that liability is restricted to the actual property involved.
The clause should read something like this (consult your solicitor):
“The liability of the Trustees under the terms of this Deed of Lease shall be limited
to the property as set out in the schedule (attached) and shall not constitute a debt
payable by the Lessee (or Lessor as appropriate) or their successors in office out of any
other fund or property.”
It is the congregation’s responsibility to ensure any conditions attached to leases
are fulfilled. The church council must give the required notice to renew a lease
that has a “right of renewal” clause.
Insurance of leased property
• Leasing part of your property may affect your insurance cover.
• It may be prudent to also require the lessee to carry their own insurance e.g. public
liability
• Ask the Church’s insurance brokers (AON) for advice.
Keeping records
Make sure that you keep a careful record of all leases and other property transactions.
This record keeping is important:
• for successors in office
• for charting exactly what has to be done in the future
• the date/time for follow up.

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Use of property funds
Why are there limits on the use of money raised by selling property?
Your parish property is in the nature of a trust which you have received from the past
members of your congregation. The General Assembly has decided that money raised
by selling property is, in general, ‘ring-fenced’, because it was from a property trust.
What can’t the capital be used for?
The proceeds of sale of property cannot be used for the running costs of the current
congregation:
• minister’s stipend or staff salaries
• administration costs
• heat, light, power, insurances etc.
• worship materials e.g. hymn books, projectors
• vehicles
• office equipment, appliances, sound systems etc
• routine maintenance.
What can the capital be used for?
The proceeds of sale of property can be used for adding to your property through:
• buying or building property
• buying land
• repaying mortgages
• growth projects.
SECTION 06
What else might it be used for?
You might be allowed to use property money for major maintenance items, or for
adding to the value of your existing property, providing certain conditions are met. Such
approval is at the Trustees’ discretion. The main criteria are
• How necessary is the expenditure?
• Why is the parish unable do this from current income?
• How will this expenditure benefit the future mission of the church?

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These types of expenditure might be approved
• extensions and major maintenance of buildings
• painting the existing buildings
• major refurbishments of the interior, including carpeting
• purchase or repair of the principal musical instrument used in services
• costs associated with fulfilling legal requirements e.g. building warrant of fitness
• security and fire protection installations
How do we apply to use the proceeds of the sale of property?
Any application to use capital funds needs to be approved by:
• Board of managers/ deacons court/ parish council
• Congregation
• Presbytery/UDC
• Church Property Trustees
The Trustees’ approval must be received before you commit to spending the money.
Application forms, together with supplementary questions, are available from the Secretary
to the Trustees. Depending on what you propose, presbytery/UDC and the Trustees may
ask for your parish accounts, valuations of the property, and plans and costings.
If you are planning to use property money, check early
with the Secretary to the Trustees as to whether your
proposal is likely to be within the Church Property Trustees’ discretion.
What happens to property money we aren’t spending?
Property capital funds which you are not using must be held in the Presbyterian
Investment Fund. Interest earned in the parish’s account is credited quarterly. The
interest may be used to meet the running costs of the parish.
Synod of Otago & Southland authority
Parishes located south of the Waitaki River must apply to the Synod of Otago &
Southland (not to the Church Property Trustees) for any approvals relating to relating to
property, and the use of property proceeds.
The Synod’s regulations vary in some respects from those of the Church Property
Trustees. Southern parishes should contact the Executive Officer, Synod of Otago
& Southland, P O Box 1131, Dunedin. Phone 0800 76 22 22 or email synod.otago.
southland@xtra.co.nz.

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Gifting property
Rather than sell, can we gift the property, or discount its price, to a worthy cause?
Occasionally, congregations prefer not to sell their property, but to have it used in some
worthy manner (or sold at below market rates to a cause which cannot afford the full
value of the property).
Yes and No.
SECTION 07
The main distinction is the status of the congregation concerned. If the congregation
is continuing its ministry in the area, it is appropriate to place such a proposal, after
careful consideration, before the presbytery/UDC. If, however, the parish is closing
down, only the presbytery/UDC can make such decisions.
Is such a proposal the best use of the property to fulfil the mission of your local,
regional and national church?
The wider proposal will also need the specific approval of your church courts,
presbytery/UDC and the Trustees.
This can take a lot of talking through – so allow plenty of time for the process, and
don’t promise the property when you are not the only people who have a say.
Remember that church property is a trust from all the past members of your
congregation, going right back to its establishment. The assets have been given in the
expectation they will continue to be used for the mission of the Presbyterian Church. It
is important that any gifting fulfils this trust.
In some circumstances, if all the approvals have been given, sales can be arranged at
a discount to the real value of the property. This may include the nominal sum of $1,
though the tax implications of such gifting need to be checked out.
Proceeds from the sale of a property may gifted to another congregation. The Trustees
Office has details.
Closure of a parish
When a congregation is dissolved i.e. the parish closes, it is not the end of the
Presbyterian Church’s mission in that area. Presbytery/UDC will ensure that mission
of the church continues, often by amalgamating the area into one or more of the
neighbouring parishes. The beneficial ownership of the assets of the parish will be
transferred to the presbytery/UDC, and responsibility for determining the future of

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THE PROPERTY HANDBOOK
these assets belongs with the presbytery/UDC. The closing parish may express its
wishes on the matter, but it does not have the right to make the final decision.
When a union or co-operating parish is considering closure, the other partner Churches
must be consulted, through the Joint Regional Committee. A proportion of the closed
parish’s assets will go to the partner Churches involved. It is important that the schedule
of assets, which accompanied the original agreement to unite, is kept up to date.

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THE PROPERTY HANDBOOK
SECTION 08
Gifting and loaning of
congregational funds
Introduction
The 2008 General Assembly wished to make it easier for the Church’s financial resources
to be shared more widely. In response, the Church Property Trustees, in consultation
with the Council of Assembly, developed a process to encourage congregations and
presbyteries to gift or lend funds to another congregation or presbytery. Through Press
Go, the Church can collectively evaluate and fund promising growth projects, and
parishes are urged to gift or loan funds through Press Go.
Gifting of non-capital funds
No external approvals are needed if a parish wishes to gift any of its surplus funds
that have not come from the sale of a church property. However, the Church Property
Trustees and the Council of Assembly expect that proposals to gift funds, particularly
over $20,000, will first be discussed in principle with the Press Go Board.
The donor church council should develop a formal proposal, to be put to the congregation
for approval. Once approved, the funds can be gifted directly to the Press Go Board, or
to the selected recipient parish or presbytery.
Loans from non-capital funds
The donor congregation does not need external approval to lend non-capital funds
but, if the loan is more than $5,000, the recipient parish must seek the approval of
presbytery and the Church Property Trustees to borrow funds. (See flowchart on next
page.) A formal agreement, with clear terms and conditions, should be drawn up, with
legal advice, and signed by both congregations.
Gifting or loans from capital funds
If a congregation has surplus funds from the sale of a property, the approval of
presbytery and the Church Property Trustees is required before the funds can be
transferred to another congregation or to a presbytery.
Information on the detailed requirements for gifting or lending capital funds is available
from the Trustees’ Office. The donor congregation, the recipient congregation and the
presbyteries concerned must all answer a range of questions about the proposal, and
how it will further the church’s mission.

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Parishes can also gift to Press Go a proportion of the interest earned on their Presbyterian
Investment Fund accounts each quarter. Contact the Trustees’ Office for details.
Steps in process for gifting or lending capital funds
Church council agrees to
explore gifting or lending
surplus capital funds.
(Minimum $5,000 in total)
Church council discusses
proposal in principle with
both presbytery and Press
Go Board.
Church council develops
formal proposal and puts to
congregation for approval.
Congregation seeks
presbytery approval to
gift or loan surplus capital
funds to another
congregation.
If the funds are to be a
loan, the recipient
congregation seeks
presbytery approval to
borrow.
Presbytery assesses
application to use capital
funds, then forwards it to
Church Property
Trustees.
Presbytery assesses
application to borrow
funds, then forwards it to
Church Property
Trustees.
1. CPT gives approval
in principle.
2. Both congregations
sign agreement (with
terms and conditions
drawn up on legal advice)
and send it to CPT for
formal approval, and
lodging with CPT.

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THE PROPERTY HANDBOOK
SECTION 09
Lottery Grants Board applications
Conditions to be met before making an application for a Lottery Board grant
The Presbyterian Church has long-standing objections to gambling, particularly to large
scale gambling as promoted by the Lotteries Commission. The General Assembly has
endorsed the following criteria for parish applications for Lottery grants.
• Benefits of the grant must be wider than the congregation e.g. for community projects.
• Grants can’t be used for regular parish running.
• Applications for grants for property development, including building alterations, will
only be considered when most of the use of the property will be for groups or
organisations which are not part of the congregation.
• The congregation will be able to sustain the project financially during its life.
• The congregation has sufficient realisable assets, either financial or in property,
to cover the restitution of any grant which the Church Property Trustees may be
required to make in terms of the agreement with the Lottery Grants Board.
• The congregation has specifically agreed that should restitution be required, it will
be funded from these specific assets.
• Presbytery has undertaken to ensure that the conditions of the grant are met, and
has processes in place to fulfil this.
Congregations must apply to the Church Property Trustees for approval to apply to
the Lottery Grants Board. These approvals are required:
• Board of managers / deacons’ court or parish council finance committee.
• Congregation, including an undertaking to repay the grant if the conditions attached
to it are not met.
• Presbytery/UDC, which must undertake to monitor the project to ensure any
conditions attached to the grant are met.
• Church Property Trustees (Synod of Otago & Southland, for parishes south of the
Waitaki River).
The church approvals application form is available from the Church Property Trustees
Office. Email trustees@presbyterian.org.nz for an electronic copy.

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The Trustees will assess applications using the above criteria.
Note: Local Lottery Commission Offices have discretion to make grants of up to $5,000
to unincorporated societies. Where a parish has a specific need, and the use is for
community purposes, an application for less than $5,000 may be submitted without
the prior approval of the Trustees. The approval of presbytery is still required in such
circumstances.
Approval requirements:
• Before any expenditure is made from a Lottery Board grant, or any contract made
which would require disbursement from the grant, the recipient church council must
first obtain the approval of the presbytery/UDC property and finance committee
• The church council must set up a special bank account with four trustee signatories
(two church council and two presbytery property and finance committee members),
into which the grant must be paid. Withdrawals from the account must be
signed by one church council signatory and one presbytery signatory.
If these conditions are satisfied, the Trustees may authorise a grant application, on
the basis that any restitution will be limited to the property specified above, and the
acceptance of the grant does not place any liability on any other church property or fund.
The Lottery Grants Board has a number of schemes which vary between regions,
and change over time. Enquire at your nearest local Community Development
Group Office (see www.cdgo.govt.nz or call 0800 824 824) to check if your
proposal will fit their current criteria, and whether a scheme exists under which
your proposal might get a grant. You may find no money is available for proposals
like yours.
The Trustees have absolute discretion in this area, and they are likely to decline any
applications that they judge marginal.
If you get Church approval, then you still have to be successful with the NZ Lottery
Grants Board. The Client Application form will not be accepted unless it has been
countersigned by the Trustees.

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THE PROPERTY HANDBOOK
SECTION 10
Duties and responsibilities
of decision makers
• All members of church courts who manage the assets of a parish are in a ‘trustee
relationship’.
• They have responsibilities as trustees in keeping with The Trustee Act 1956.
• The most important responsibility is to exercise ‘care and prudence’ in all decisions
that are made.
• There is a legal accountability to the parish for this responsibility.
• If you are ever in doubt about whether any decision is likely to breach this duty,
seek legal advice first.
This is what we mean by ‘good stewardship’.
Responsibilities of presbytery/UDC
Presbyteries/UDCs play a pivotal role in property matters.
The Book of Order places responsibility on Presbyteries/UDCs for the oversight of all
property dealings with parishes. While the Trustees have the final legal authority over
property, the Trustees do not know the local situation.
The Trustees expect the presbytery/UDC to give careful scrutiny to property proposals
before endorsing them. Presbytery/UDC approval carries considerable weight.
Presbytery should consider whether a property proposal before it:
• is consistent with the mission strategy of the parish and of the presbytery
• is a wise use of resources
• complies with the requirements of the Book of Order and its supplementary provisions
• has sufficient support within the parish
• will not over-commit the parish
• will not put undue pressure on the congregation.

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Chapter 16.4 of the 2006 Book of Order defines the property and finance
responsibilities and duties of a presbytery as follows:
1. A presbytery has the following functions in relation to church buildings:
a) approval of sites and plans for new buildings
b) approval of the erection of new buildings for the purposes of the Church
c) oversight of building proposals submitted by congregations
d) approval of plans for re-erection or renovation of, and alterations and additions to,
the buildings in excess of a sum determined by the Council of Assembly and specified
in the supplementary provisions and
e) approve the purchase of existing buildings.
2. A presbytery must not approve any building proposals in excess of a sum determined
by the Council of Assembly and specified in the supplementary provisions
unless it is satisfied that any person or persons engaged in drawing up plans and
specifications for such buildings is or are competent and recognised by the appropriate
industry body.
3. A presbytery must ensure that a registered architect, registered clerk of works or
other competent person acceptable to presbytery carries out inspections at regular
intervals of building proposals involving expenditure in excess of a sum determined
by the Council of Assembly and specified in the supplementary provisions.
4. A presbytery must approve all purchases, sales, exchanges, leases and other transactions
affecting Church property (including Church campsites where appropriate)
within the area for which it has responsibility and in doing so must have regard to
the requirements of the supplementary provisions relating to value and terms of
leases.
5. Before approving any building proposal subject to the requirements of the Trustees,
whether by way of new building, alteration, addition, or purchase of existing buildings
(but not including maintenance), the presbytery must obtain and be satisfied
with the report of the Church Architecture Reference Group on the proposal.
6. Subsection (5) does not apply to any proposal for maintenance of buildings.
7. In exercising its responsibilities for worship and mission through the purchase, development
and sale of sites, the presbytery must consult with the negotiating partners
through the Joint Regional Committee in their region.

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8. For parishes south of the Waitaki river, subsections (1) to (7) must be read subject
to the requirement that any application by a congregation or Church campsites to
purchase, sell, build, dismantle, remove, lease, subdivide, or borrow on the security
of anything over $5000 must be approved by the Synod of Otago and Southland.
Such applications must be made through presbyteries, which may recommend but
cannot decide on such applications.
The Supplementary Provisions to Chapter 16 contain further details.
The Book of Order and its supplementary provisions may viewed on the national Church
website, www.presbyterian.org.nz
Property held in the name of Presbytery
If a parish closes without amalgamating with another parish, ownership of its assets
are transferred to the presbytery.
If a presbytery wishes to sell a property held in its name, or undertake material work
on such property, then the presbytery must apply to a Commission of Assembly, which
will then forward the application to the Church Property Trustees for final approval.
The standard application form may still be used, and modified to suit.

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THE PROPERTY HANDBOOK
THE PRESBYTERIAN CHURCH PROPERTY TRUSTEES
The Trustees are a group of up to 20 people who administer the property and financial
assets of the Presbyterian Church.
You can find who the Trustees are by contacting the Secretary to the Trustees.
In addition to their general accountabilities as Trustees, The Presbyterian Church
Property Trustees are required to keep the rules set out in Acts of Parliament which are
specific to Presbyterian Church property. These Acts are listed below. The Trustees are
also guided by decisions made at General Assembly.
The Trustees are:
• appointed by the General Assembly
• must be members of the Presbyterian Church
• must be of ‘full age and good fame’
• must be resident in New Zealand.
The Trustees are usually appointed because of their skills and experience. As The
Trustees meet often, most live in the wider Wellington region.
The Acts of Parliament under which The Trustees work:
The Presbyterian Church Property Act 1885
The Presbyterian Church Property Amendment Act 1914
The Presbyterian Church Property Amendment Act 1930
The Presbyterian Church Property Trustees Empowering Act 1957
The Presbyterian Church Property Amendment Act 1963
The Presbyterian Church Property Amendment Act 1970
The Presbyterian Church Property Amendment Act 1974
The Presbyterian Church Property Amendment Act 1996
Other Church Property Acts of interest are:
The Presbyterian Church of New Zealand Act 1901
The Otago Church Board of Property Act 1962
The Otago Foundation Trust Board Amendment Act 1968
The Otago Foundation Trust Board Act 1992

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THE PROPERTY HANDBOOK
Published by the Presbyterian Church of Aotearoa New Zealand
Level 1, Terralink House, 275-283 Cuba Street, Wellington
Postal address: PO Box 9049, Wellington, New Zealand
Phone 04 801 6000 Fax 04 801 6001 www.presbyterian.org.nz