Outline of Procedure for the Purchase of Church Property
POLICY GUIDELINES FOR THE PURCHASE AND SALE OF FIXED PROPERTY FOR AND ON BEHALF OF THE SOUTHERN AFRICA UNION CONFERENCE
The SAU Working Policy Manual sets the scene for procedures to be followed when purchasing or selling fixed property for or on behalf of the Seventh Day
In addition to the relevant policies, Sedcom and SDA Welfare Services wish to draw your attention to additional procedures which should be followed to ensure that such transactions proceed smoothly.
PURCHASING AND SELLING PRINCIPLES:
- The relevant property is identified.
- The proposed transaction is then discussed at local board level (church or institution), confirming the purchase or sale price and purpose for which the property is to be purchased or reason for sale.
- If it is a purchase, the manner in which the property will be financed needs to be established and approved. If the property is to be used for building a church or church hall it should be zoned for that purpose, otherwise rezoning will be required and careful consideration will have to be given to such possibility. If a dwelling is bought for the purpose of having church meetings, one would have to apply for consent of use of the property for such purpose.
- Once approved, the initial “Offer to Purchase” or “Acceptance of Sale” document only may be signed by the Treasurer of the Conference/Institution? (Kan ons nie maar net se die conference nie. Wonder of party nie die locale kerk as a institution sal sien nie)who must ensure that this document is in order. Special attention must be given to clauses relating to:
- Purchase or selling price
- Payment conditions
- Deadline dates
- Payment of a deposit and deadline dates for such payments
- Payment of rental by or to the Organisation prior to registration of transfer
- The transaction is then referred to the next higher body for discussion and approva –
- Conference Executive Committee.
- If approved, the Minute reflecting the decision is sent through to SEDCOM or SDA Welfare Services (will only refer to SEDCOM for rest of document) for discussion at the next Board Meeting.
- A copy of the “Offer to Purchase” or “Acceptance of Sale” document is also sent through to this office.
- The SEDCOM BOARD must then approve the relevant purchase/sale and provide a Resolution to this effect.
Please Note: SEDCOM Board is unable to consider any transaction if not approved by the relevant sub organisation.
- Once considered and then approved by the SEDCOM BOARD, all subsequent documents (ie excluding the initial “Offer to Purchase” etc.) must be signed by the Secretary of SEDCOM (ANDRÉ JOHAN SCHOLTZ)
- In the event that an application for a bond is to be made, the sub organisation (Conference or Institution?) must take a separate action in which SEDCOM is requested to apply for such a bond and a Minute from the Conference Executive Committee authorising said application must also be provided to SEDCOM for consideration by the BOARD.
- SEDCOM must also be provided with a plan of finance illustrating how the sub organisation intends to finance the purchase and service any bond in this regard.