Buying Property from the Church

MissR123

Hi All,
I'm new to the forum so hopefully I have posted this correctly.
I am looking to purchase a property and have started to view some in the area.
I booked a viewing yesterday on a property that has been empty for a year and needs some work.
It is slightly out of my price range but I thought I could just make my best offer if I like it and see what happens.
Upon calling the estate agent they informed me that the house is owned by the church.
They have had an independent valuation done and advertised it at this price.
The estate agent then told me that 'due to the property being owned by a charity they are legally unable to accept any offers of less than this valuation price'.
I am Just wanting to check that this is correct and that the estate agent is not just trying to put me off making an offer of less?
It seems surprising that accepting less money would be 'illegal'? perhaps it is just a policy of the church.
Also does anyone have experience of buying from the church or a charity, does it make the process more complicated?
I understand that they can ask whatever price they like and do not have to accept any offers, I just wanted to clarify the facts.
Many thanks in advance.

Doozergirl

An estate agent just wants to sell a property.  They know that the market sets the price.  I've not dealt with the church and have limited experience with charities, but anecdotally, I understand them to be far more hard nosed than their status suggests.  

It sounds totally genuine and that the agent is probably trying not to waste their own time or anyone else's. 

You'd think that an auction situation would be better for them. 

davidmcn

It won't be "illegal", I suspect it's more just "those are our current instructions". Obviously if they don't get any offers at that price then they'll need to lower their expectations. Nothing stopping you from making an offer and seeing what happens.

eddddy

It's probably 'kind-of' related to the law. In simple terms, the charity has legal obligations to demonstrate to the Charity Commission that it is only using it's money to support it's charitable causes.

The Charity Commission might suspect that selling a property cheaply to you, benefits you rather than benefitting their charitable causes.

I guess a better way of putting it is that they don't want to do anything that leaves them open to any accusations of wrongdoing. Selling a property below it's valuation might do that. You could say they want to cover their backs.

But if you make a low offer, and perhaps they don't get any higher offers for 2 or 3 months, they might feel that they can safely accept your offer.

theartfullodger

A church, surely, rather than "the" church?

greatcrested

Buying from the Church can be a nightmare. You're not negotiating with a single vendor, you're dealing with a committee......

That committee has probably reviewed the Valuation and agreed to sell at (or above) that price. So any lower price you offer will either be rejected, or (if no other buyers make better offers) it will be referred back to the committee, who may not meet regularly, or when they do, may not be quorate!).

And if/when a quorate committee finally meets, and assuming they get round to the sale issue on their (long and contentious) agenda, they may be unable to reach agreement........

But they are all lovely people so I'm sure you'll be fine!

theartfullodger

Lovely people?  I've met rather too many tenants evicted by such "lovely" people so they might profit by it.

And there shall be a great profit/prophet throughout the land .....

princeofpounds

I would re-iterate what eddddy said. It is not 'illegal' to sell below asking price. But they have a duty to their charity to sell for the best price possible. The way that's done is generally how eddddy suggests; market at a valuation price, only accept lower offers if nothing better comes along within X months.

Occasionally we get people dealing with the Church on the board - they can often be rather awkward. A combination of committee politics, diocesian hierarchy, old codgers causing trouble and a willingness to let things drag on.

theartfullodger said:

A church, surely, rather than "the" church?

I think by virtue of Establishment they still deserve the definitive article.

theartfullodger

Expect surely, nothing deserving about it, IMHO.

OP, which country?  Wales, Scotland.....?

Robin9

If it is CofE then it most probably The Church, local churches do not generally own property - it is vested in the local Diocese.

MissR123

It is CofE. Thank you all for your responses so far they have been very helpful.