Download The Property Handbook - Presbyterian Church of ...

More documents

Recommendations

Info

PAGE ›› 12 THE PROPERTY HANDBOOK 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?
PAGE ›› 13 THE PROPERTY HANDBOOK 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.
Page 1 and 2: PAGE ›› 1 THE PROPERTY HANDBOOK
Page 11: PAGE ›› 11 THE PROPERTY HANDBOO
Page 15 and 16: PAGE ›› 15 THE PROPERTY HANDBOO

Download The Property Handbook - Presbyterian Church of ...

Create successful ePaper yourself

Delete template?

Save as template?