You’ll find churches and worship locations scattered throughout almost every town in America, and while the properties don’t get sold all that often, sometimes a developer wants to purchase land that includes a church, or a congregation is looking to move to a larger building. If you’re looking to purchase a church or property that contains a religious building, it’s imperative that you connect with a title services team to perform a comprehensive title investigation. Below, we explain why a thorough title search is necessary when purchasing property that has a church on it.
Complex Church Title Search
Title searches should always be performed when purchasing commercial property, but that sentiment is even more true when you’re purchasing a church or property that contains a church. Here’s why:
-
Complex Ownership - When purchasing a church, it’s highly likely that the property is not owned by a single individual. Many churches across the US are owned by a religious trust because of the tax benefits that these ownership types allow for. However, these religious trusts may have a more complex background with specific legal requirements and restrictions in place, which can make a valid sale a little more tricky. Your title search team can review the ownership structure and ensure this will not lead to any unresolved title defects on the property’s title.
-
Property Use - A title services team can also review land use regulations to ensure that your future vision for the site falls in line with land use and zoning laws. Churches may be zoned in a way that makes it impossible for you to run a specific type of business on the land even after you’ve acquired it. There’s also the possibility that cemeteries or graveyards on the ground have specific requirements and restrictions that must exist in perpetuity, so make sure your title team reviews zoning standards and land use rights.
-
Easements - Many churches also have easements on the property that allows for shared access or dictates how roads and parking structures on the lot are to be used. You’ll want to search for the existence of easements prior to purchase, because these easements will exist even after you close on the property.
-
Historic/Environmental Requirements - It’s possible that the church is registered as a historic building such that alteration or demolition is expressly prohibited. Depending on the ownership structure, certain areas of the property may be listed as part of an environmental easement, such that no changes to the natural property can be made. Your title services team will look into historic and environmental restrictions that are associated with the property prior to closing.
It’s essential that you connect with a title services team if you’re considering buying a church or property that contains a religious structure or cemetery. On top of the normal title investigation that needs to happen, there can be a greater likelihood of issues tied to ownership structure, land use, easements and historic or environmental restrictions. Overlooking these requirements and potential title clouds can be an incredibly costly mistake, so trust the process to an experienced team like Commercial Partners. For more information on how we can assist with your church purchase, connect with our team today at (612) 337-2470.