Remember: Almost all property matters are governed by state law. An attorney familiar with your state’s property law should be used.

• The Presbyterian Church (U.S.A.) and Its Property
• Presbyterian Church (U.S.A.) Property Trust Clause (G-8.0201)
• Absence of Trust Clause
• Property Used Contrary to the Constitution, Church in Schism, Church Dissolved
• Resources
  • Church Property Cases in Your State or Jurisdiction
  • Funds and Assistance for Church Property Litigation
  • Selling, Encumbering, and Leasing Church Property
• Information About Property Generally and Church Property
• Special Issues with the Leasing of Church Property
• Conveyances of Property
  • Items of Concern When Property Is Being Conveyed
  • Contracts for Sale
    • Purchase of Real Property
    • Zoning
    • Option Agreements
  • Deeds
    • Adverse Possession
    • Recording
    • Ensuring Good Title
    • Mortgages and Deeds of Trust
    • Releases
    • Mechanic's Liens
    • Surveys
  • Property Used by Two Denominations
  • Historic Landmarking of Church Property
• Loan Programs Offered by General Assembly Office
  • Church Loan Program
  • Presbyterian Church (U.S.A.) Investment and Loan Program, Inc.
• Property of a Dissolved or Extinct Church
• Sample Form for the Property of a Dissolved Church
• Advisory Opinion Note #11: Church Property

While Book of Order Chapter VIII is relatively brief, it sets out very important provisions in the life of the Presbyterian Church (U.S.A.). These property provisions include

• Property Trust G-8.0200
• Decisions Regarding Property G-8.0100
• Property Used Contrary to the Constitution G-8.0300
• Property of Church Dissolved or Extinct G-8.0400
• Selling, Encumbering or Leasing Church Property G-8.0500
• Property of Church in Schism G-8.0600

As is evident from this listing, Chapter VIII sets forth the terms by which the church will act and be bound at some of the most challenging and demanding times. In addition to the discussion set out immediately below, the Constitutional Services Department of the Office of the General Assembly has written a very helpful church property summary, Advisory Opinion Note # 11: Church Property.

It is strongly advised that all written instruments of conveyance involving property acquired for use as a place of worship or other church activities should contain the following clause or language very similar:

• The property trust set out in the Constitution
• Prior conveyances in the chain of title to predecessor local churches or agencies within the Presbyterian Church (U.S.A.) or its predecessor denominations
• Use of the name, customs, or polity of the Presbyterian Church (U.S.A.) or its predecessor denominations in such a way that it becomes known by the community as part of the denomination
• Service by a minister member of presbytery of the Presbyterian Church (U.S.A.) or its predecessors
• Activity within the presbytery, including participation in presbytery meetings, committees, and functions by ministers and elders of the church
• Funding and development assistance from presbytery or any other PC(USA) or predecessor governing bodies

Where such evidence is present, civil courts have upheld the right of denominational units to succeed to the title on the express or implied trust theories. It is extremely important to understand that, although title to the property may be held by a particular church subject to the provisions of the Constitution, the title is merely held in trust for the denomination by that entity. The title may be taken in the name of the corporation or certain trustees but the Constitution clearly states that all such properties are held in trust for the denomination, whether or not a trust clause is included in the instrument of conveyance.

G-8.0301 establishes the central principle that when the property of a particular church is not being used in accord with the Constitution, the presbytery shall determine how the property shall be held, used, applied, transferred, or sold. In a similar vein but more specifically, when a particular church is dissolved by the presbytery, the presbytery has all the same powers in regards to the property. G-8.0401. Finally, in a schism at the particular church, the presbytery again holds the central authority. As established by G-8.0601

• Only the presbytery can sever the relationship with a particular church (G-11.0103).
• The presbytery is to effect a reconciliation of the membership or divide the church into two separate PC(USA) churches.
• If this is not possible, the presbytery determines which faction is entitled to the property because the presbytery identifies it as the true church within the PC(USA). This determination does not depend on the majority vote within the particular church.

As noted above, most civil courts ruling on Presbyterian Church property disputes will recognize and enforce the property trust set forth in the Constitution. Others will look to the trust along with a combination of

• the core polity that a higher governing body has the right of review and control over a lower governing body;
• other constitutional provisions setting forth the authority of presbytery;
• the historic interrelationship, support, customs, and functions between a church and other governing bodies.

Unfortunately, a number of church property cases do not reflect the free exercise of religion by respecting the polity and structure a church has chosen for itself. Presbytery officials and their legal counsel must be wary of these rulings.

See the section titled Property of a Dissolved or Extinct Church near the end of this chapter. That discussion sets out helpful suggestions about the typical church dissolution, where members have moved away, died, or the like. A sample form is also provided there.