| From time to time it becomes necessary
for the presbytery to take formal action to dissolve a congregation,
at the request of the members or on the initiative of the presbytery.
Rarely, but sometimes, the presbytery learns that all of the members
have moved away, died, or become unable to act. When one of these
events happens, the remaining property, real estate, financial
assets, and furnishings become the responsibility of the presbytery
to use in the mission of the Presbyterian Church (U.S.A.). The
committee on ministry and the presbytery trustees or strategic
planning committee both have significant responsibilities and
will need to work together. There are a number of legal requirements
and procedures for the transfer and disposition of property in
consultation with the session and trustees of the congregation.
This includes considering their requests for the disposition of
family memorials, furnishings, and the uses of financial assets.
When it is proposed to dissolve a congregation, representatives
of the presbytery and the session should compile an inventory
of all real and personal property. Parcels of real estate and
the buildings on each should be separately identified, along
with all bank accounts, investments, and the documentation of
all endowments or other funds held for specific purposes. An
attorney should be consulted to advise how to transfer ownership
where legal requirements must be followed. Normally it is much
simpler to complete this process before dissolution becomes
final, so that appropriate documents can be executed by the
congregation’s corporate officers. Care should be taken
to assure that any prospective gifts, known or unknown, will
flow to the presbytery or, in the case of a merger, the successor
Presbyterian Church (U.S.A.) church.
A title search of all real estate should be conducted to determine
whether there are reversionary interests that would cause the
property to pass out of the control of the church if the property
ceases to be used for specified purposes. Also, if it is decided
to transfer the property, this must be done properly to ensure
good title. Consult legal counsel.
The presbytery’s insurance agent should also be notified
when ownership is transferred or the location is to be vacated.
An unused or abandoned building may become an expensive risk.
Special care should be taken to secure the building from trespassers
and to inspect the building regularly. The owner of an unused
building continues to be liable for any accident that may occur
on the premises. Consult your agent to determine the particular
provisions of your insurance policy regarding vacant property.
Often a vacant building endorsement must be added.
When property is of minimum value and/or a buyer is difficult
to find, it may be better to transfer the property for nominal
consideration rather than having the responsibility to maintain
and insure the property. One solution for a cemetery is to transfer
the property to a local cemetery association composed of individuals
with family buried there.
The Sample Form for
the Property of a Dissolved Church 
can serve as a guideline when the presbytery and a congregation
are considering dissolution of a church. As a sample, the
form is simplified as though the property all moves in one piece.
Actually, a task force representing the presbytery and representatives
of the church often list and consider a large number of separate
items. |
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