Parish Property
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Parish Property
Property owned by the parish as opposed to the Incumbent in their corporate capacity will either belong to the PCC or to the Incumbent and Churchwardens.
Section 6 of the Parochial Church Councils (Powers) Measure 1956 (No 3) deals with the way in which (a) land (freehold land and leases for a year or more) and (b) personal property to be held on permanent trusts, are to be acquired, held and disposed of by a PCC.
Such property, where it is already held, is to be vested in the Diocesan Board of Finance (‘DBF’), and no new property falling within these classes is to be acquired by a PCC without the consent of the DBF. Any such property newly acquired is also to be vested in the DBF, which holds the property on trust for the PCC. The PCC remains the beneficial owner of the property, but the legal title to the property is vested in the DBF.
If the PCC wishes to dispose of land or personal property which is held as permanent endowment (i.e., is subject to restrictions as to the use of capital), it will need to consider the following points:
- The PCC will need to obtain the consent of the DBF to the proposed disposal.
- The PCC is a charity, and may need to obtain the consent of the Charity Commission to the proposed disposal. The Charity Commission sets out helpful guidance
- on disposals of land in its guidance note CC28 – Disposal of Charity Land
- on dealing with permanent endowment property in its guidance note Permanent Endowment: Rules for Charities
- The PCC may have acquired or be holding the property on specific trusts set out in a trust deed. This may impose restrictions on how the property or any proceeds of sale may be dealt with.
- If the property is movable property which belongs to the church itself, ownership will be vested in the churchwardens, and any disposal would require the consent of the PCC and also a Faculty, to authorize the sale.
Land and other permanent endowment property held by Incumbents and their churchwardens upon charitable trusts will be governed by the Incumbents and Churchwardens (Trusts) Measure 1964. This operates in a way which is similar to the 1956 Measure for PCC property, and property subject to the 1964 Measure will also need to be vested in the DBF. The same considerations will apply to any proposed disposal, including the requirement for the consent of the DBF.
Where the consent of the diocesan board of finance is required to the disposal of PCC or Incumbent and Churchwardens’ property which is vested in the DBF, it is important to note that the DBF does not hold the property simply as bare trustee with an obligation to deal with them at the direction of the beneficiary – s6(3) of the Parochial Church Councils (Powers) Measure 1956 and s5 of the Incumbents and Churchwardens (Trusts) Measure 1964 indicate that the DBF’s consent may be required to a disposition, which implies that the DBF has a discretion in the matter, and will want to be satisfied amongst other things as to the valuation advice which the PCC or Incumbent & Churchwardens have received, the rationale for the proposed disposal and the destination and proposed future use of the sale proceeds before giving its consent.
The requirement for the DBF’s consent is in addition to any other consent which may be required, which could include consents required by the original deed creating the trusts, consent from the Charity Commission and in some cases a faculty. This means that the DBF’s consent is not a mere rubber stamping exercise, and should not be presumed. The DBF’s consent should therefore be sought in good time, to avoid difficulties at the point where contracts are about to be exchanged or a sale is about to be completed. The DBF may wish to be separately represented to the PCC or Incumbent & Churchwardens, since it will need to be a party to any disposition where property is vested in its name, and may wish to take its own advice on the proposed disposition.