Property Consents

Property

Is your faith community considering renovating, purchasing, or selling property?
Start here!

Property Consents

If your faith community is considering a property change or transaction, you will require “advice” or “consent” from elected leaders, the bishop or others at the diocesan office. This is not an exhaustive list but some examples include: selling or leasing a portion of the property, taking out a loan, considering a remodel, replacing the windows, tuckpointing, installing solar or purchasing a new boiler. There is no monetary threshold for this requirement. The only exception is for minor (i.e. upholstery, furniture) or urgent (i.e. boiler) changes.

Kelsey Schuster, Canon for Operations, is your first stop for all property consents. Kelsey can offer resources and information about canonical requirements. See her contact information below.

To download a copy of the below flowchart as a PDF, click here.

A flowchart expressing how property consents happen and who gets involved at which point. There is a PDF of this document available. A flowchart expressing how property consents happen and who gets involved at which point. There is a PDF of this document available.

Definitions

Alienation
A sale, gift, donation, or exchange of real property or any portion of real property (i.e. parcel of land, home of building, etc.)

Encumbrance
Property is encumbered by means of mortgage, lease (as landlord), easement, right-of-way, historic designation, etc.

Short-Term Lease
A lease or rental agreement less than 12 months (in the context of the Canons)

Unsecured Loan
A loan that does not require any type of collateral. Instead of relying on a borrower's assets as security, lenders approve unsecured loans based on a borrower’s creditworthiness.

Line of Credit
A preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached. As money is repaid, it can be borrowed again in the case of an open line of credit.

Significant Alteration
Significant alteration includes but is not limited to the building's structure, roof, floor slabs, walls, windows, window openings, and exterior doors and door openings.

Advice of a Chancellor
A conversation and review the property issue/proposal/offer, etc., with an ECMN Chancellor.

Consent Tables for Mission & Parish Congregations

The tables below and linked as PDFs offer guidance on which canons apply to property consents for missions, parishes, and cathedrals, as well as the nature of those consents. 

This table lays out which canons apply to mission congregations, and which permissions are required. A PDF of this document is also available. This table lays out which canons apply to mission congregations, and which permissions are required. A PDF of this document is also available.
This table lays out which canons apply to parishes and cathedrals, and which permissions are required. A PDF of this document is also available. This table lays out which canons apply to parishes and cathedrals, and which permissions are required. A PDF of this document is also available.

Property Use as Mission & Revenue

As you consider ways to faithfully offer the resource of your property to the work of God in your neighborhood, this non-exhaustive list of possibilities may inspire you: Using Your Building as a Missional Tool and Ideas for Monetizing Church Property. 

Energy Resources for Faith Communities

Find here resources to decrease your building's energy use, or to increase its sustainability.

Frequently Asked Questions

Who “owns” church real estate? 

All real and personal property held by or for the benefit of any Congregation is held in trust for The Episcopal Church and for the Episcopal Church in Minnesota. Both the ECMN and The Episcopal Church canons establish this trust. This trust honors  the covenantal ties that unite us in our ministry of witness to the love and grace and justice of God in the world

Who holds the title to Parish Congregation real estate?

The Parish congregation holds the title to its real estate; this does not diminish that the property is held in trust for the diocese and wider Church as set out in ECMN and The Episcopal Church Canons and described above.  

Who holds the title to Mission Congregation real estate?

The ECMN Trustees hold title to the real estate used by Mission Congregations. This is required under the ECMN canons.

Who is responsible for the cost for the upkeep and improvement of Parish Congregation property?

The Parish Congregation is responsible for the cost of maintaining and improving  church buildings, grounds, and property because it holds title to  the real estate. ECMN canons require that real estate is not be “wasted” or “neglected,” and The Episcopal Church canons require that it be adequately insured. Of course, for making capital improvements and financing them, various “Consents” may be necessary.

Who is responsible for the cost for the upkeep and improvement of Mission Congregation property?

While the ECMN Trustees are the owner of Mission Congregation real estate, the Congregation is responsible for its upkeep.  

For capital improvements, including major repairs, the Mission Congregation must get Trustee permission. The Trustees, depending on the situation, may require Consents from another elected body and/or the Bishop in accordance with ECMN canons. The Trustees and the Mission Congregation must agree on who is going to pay for the capital improvements.  

What is the process for selling, donating, leasing, mortgaging, or otherwise changing the ownership of a Parish or Mission Congregation’s real estate?

If your faith community is considering a property change or transaction, you will require “advice” or “consent” from the Trustees, Standing Committee, the bishop and/or others at the diocesan office. This is not an exhaustive list but some examples include: selling or leasing a portion of the property, taking out a loan, considering a remodel, replacing the windows, tuckpointing, installing solar or purchasing a new boiler. There is no monetary threshold for this requirement. The only exception is for minor (i.e. upholstery, furniture) or urgent (i.e. boiler) changes.  Refer to the Property Consents page for details and contacts. 

Are there any special requirements if the building is a dedicated and/or consecrated Church or Chapel?

Yes, the Canons of The Episcopal Church require that no dedicated and/or consecrated Church or Chapel may be mortgaged, removed, taken down, sold, or given away for any “worldly or common use” without the Consent of the Bishop with the advice and Consent of the Standing Committee. This is a separate Consent from the general Consents regarding real estate and should be presented as a separate request to the Standing Committee.

ECMN canons require that the Church or Chapel be deconsecrated by the Bishop before it is sold, removed, or used for any secular purpose.  

Why are Consents required?

Congregations of the Episcopal Church do not exist in isolation. They are part of a diocese, and the diocese is part of a church-wide religious denomination.  Both ECMN and The Episcopal Church canons have requirements regarding consents and advice that are required for real estate and property issues and transactions. There is mutual interdependence among all the levels and institutions of the Church. The Church believes in shared decision making. Most decisions in the Church must be made with the agreement of Bishops and lay members and clergy members, usually in the form of a body such as Standing Committee, Council, or Trustees. As with decisions about who is ordained priest or deacon and who is elected bishop, all  orders of ministry and various levels of the Church are involved and must Consent.  The same is true for real estate decisions,  including requiring Consents from the Bishop and other governing bodies. The Church believes that everyone’s interests are best served through these processes,  all of which are designed to help build a strong, sustainable Church with strong, sustainable congregations and dioceses.  

Further, Bishop, Standing Committee and/or Trustee Consent and Chancellor advice is required as an essential layer of protection for faith communities of all sizes engaging in often unfamiliar property activities. This extra set of eyes, and at times expertise, can be extremely helpful in maximizing insurance claims, avoiding overpaying, under charging for lease contracts, compliance with civil law, and a myriad of other issues and opportunities that church property management presents. 

In addition, since all real estate is held in trust for the wider Church, and because if a Congregation fails to take care of its buildings the responsibility to do so will become that of the diocese through the Trustees.  

Thinking about making changes to your property?

Please be in touch with Canon Kelsey Schuster with any questions or if your faith community is planning to make any property changes.

IMG_1080 IMG_1080

Kelsey Schuster

Canon to the Ordinary