THE STANDING COMMITTEE’S “CHECK-LIST”
of Requirements Regarding Real Estate Transactions

Revised June 19, 1999
Amended May 15, 2000

Under the canons, real estate or any interest therein may be conveyed, mortgaged, otherwise encumbered, leased (as Lessor) or otherwise alienated by the Trustees of the Diocese or by any Vestry of any congregation, or by the governing body of any Diocesan institution, only with the written consent of the Ecclesiastical Authority (normally the Bishop) who can only act with the advice and consent of the Standing Committee. No such consent is required for any of the following transactions involving real property that is not consecrated for use as a church or chapel: (1) leases that can be canceled without penalty upon notice of 30 days or less to the lessee; (2) temporary easements of less than 12 months duration; and (3) cemetery lots or other interment rights. To assist the Standing Committee and the Bishop in performing their duties in the usual transactions that occur, a seeker of such consents shall furnish in writing to the Bishop, with copy to the President of the Standing Committee, at least one week prior to the meeting of the Standing Committee at which action is desired, information about the transaction as specified under the appropriate heading in this “check-list.”

If consent to the transaction is given, the seeker is expected to comply with the following provisions:

1. Every document that is executed under any of the following categories shall contain a recital that it is executed with the consent of the Bishop of North Carolina who has obtained the advice and consent of the Standing Committee of the Diocese.

2. All consents shall expire 365 days from the date of the Bishop’s letter if the transaction has not been completed within that time unless another expiration date shall have been specified. A proposed transaction for which consent has expired must be authorized anew with submission of current information.

3. After a transaction has been completed, the Trustees or governing body of the parish, mission, or diocesan institution shall forward to the President of the Standing Committee copies of the executed legal documents involved.

Sale

The following documents shall be submitted when consent is sought to convey title to real property.

1. An authorizing resolution that identifies the property, sets forth the terms of sale including the price agreed or sought, gives the provisions of any listing with a real estate agent, and gives the reasons for the sale, including the application or reservation of the proceeds of sale and a statement that the property is not needed for the ongoing operations of the diocese, congregation, or institution.

2. If the sale contemplates any purchase money financing by the Seller, an explanation thereof with copies of pertinent documents that will be involved.

3. Unless otherwise specifically authorized by the Standing Committee, an appraisal report prepared by a State-certified or State-licensed real estate appraiser and who is not a member of or other otherwise connected with any party involved in the transaction.

Lease (as Lessor)

The following documents shall be submitted when consent is sought to lease real property as lessor.

1. An authorizing resolution that identifies the property, sets forth the terms of the lease including the rental payments, term, renewal or cancellation options and other pertinent provisions, gives the reasons for the lease including the application of the rents to be received and a statement that the property is not otherwise needed during the lease period for the ongoing operations of the diocese, congregation, or institution, and contains facts supporting the opinion of the Vestry or other governing body that the rent and other provisions of the lease are fair and adequate.

2. A copy of the proposed lease.

Right of Way or Easement Grant

The following documents shall be submitted when consent is sought to convey a right of way or easement appurtenant to real property.

1. An authorizing resolution that identifies the property, sets forth the details of the proposed right of way or easement grant, states the consideration or lack of consideration to be paid and the Vestry or other governing body’s opinion as to the adequacy thereof, states whether the Vestry or other governing body considers that the grant will enhance or injure the property, states the application to be made of any consideration to be paid for the grant, and states whether the Grantee has the power of eminent domain.

2. A map locating the right of way or easement on the property.

3. A copy of the proposed right of way or easement.

Mortgage Loan

The following documents shall be submitted when consent is sought to encumber title to real property by execution of a mortgage or deed of trust as security for the repayment of a loan.

1. An authorizing resolution that identifies the property to be mortgaged as security for the loan, and sets forth the reason or reasons for the loan, its amount, rate of interest and time period, the schedule and source of repayment, and the terms of any repayment privileges or penalties.

2. Unless otherwise specifically authorized by the Standing Committee, an appraisal report prepared by a State-certified or State-licensed real estate appraiser who is not a member of or otherwise connected with any party involved in the transaction.

3. Where there are any contracts or other papers of any sort to be signed other than ordinary notes or deeds of trust, an exact copy of said contracts or other papers.

4. If the mortgagor is a parish or mission, a copy of the audit report and parochial report for the previous year, a copy of the current year’s budget, a copy of the most recent balance sheet and year-to-date statement of revenues and expenditures, and a copy of next year’s budget (if available). The parochial report need not be submitted if information as to communicant strength is readily available in the Journal for the previous year.5. If a current balance sheet is not available, a comprehensive statement of (1) ALL capital assets of the parish or mission, including real estate, endowment funds, funds held in reserve, special funds, investments, bank accounts, and other assets of any kind and (2) ALL liabilities of the parish or mission, including notes payable, federal and state withholding taxes payable, unpaid ad valorem taxes constituting a lien on real property, arrears in Church Pension Fund assessments, arrears in accepted askings of the diocese, arrears in health insurance premiums, other accounts payable, and other liabilities of any kind.

Other Transactions

If a particular contemplated transaction does not fit any of the foregoing categories, the seeker of the required consents should address appropriate inquiries directly to the President of the Standing Committee.

Episcopal Diocese of North Carolina