Procedure for Property Sale
Download Procedure Chart Here: Procedure for Property Sale
- Requesting a Property Sale by Local Community
All properties currently owned by HSA-UWC were originally purchased using an offering by the church members, and therefore it is imperative to hear various opinions and give careful thought before any decision for sale is made. All property should be classified as “property considered for sale” prior to approval.
The Local Building Committee can write a request for the sale of their (church) property. This sale request should be sent to HSA-UWC HQ and the District Pastor. This Sale request will start the procedure. All properties and grounds that are not expected to be used for church purpose or business use or have little value to be utilized or developed, should be considered for sale. The requirements for HSA-UWC USA property to be considered for sale are as follows:
- The property does not serve the needs of the community
- The cost of the property cannot be supported by the community
- The property is in such a condition it is a hazard and a liability for HSA-UWC
- The building code, zoning or city ordinance does not allow the current use
- The property has very little use, which produces no or a very low yield
- The property is considered impossible to be developed as per its intended use
- The Local church will need to show a consensus from the local community in the decision to sell the (church) property
- District Pastor Writes a Request for Sale to OBIAD
The request for property sale from the local community can be forwarded to the District Pastor. The District Pastor will review this request and discuss this with the District Church Council. The District Pastor and the District Council can approve this once they made sure that:
- The community is supportive of this sale
- This sale is beneficial to the local community
- The funds are allocated to be used for a financially sound plan or kept at HSA-UWC HQ until these funds are needed for the purchase of a property
To establish the value of the property one appraisal will be made by a reputable local real estate office that is state certified to make an appraisal of residential or commercial real estate. An eventual listing to sell the (Church) property will be done by a different reputable local Real Estate office. This would allow for two different real estate agent opinions as to the value of the property.
- Staff Site Visit
After OBIAD receives the property sale request from the District Pastor and the property is evaluated, OBIAD staff may visit the site to make a report to confirm its location, the present state, current use, price and the surroundings, as well as evaluating comparable properties. This report is circulated to be read by HSA’s Executive Committee and Asset Management Team. The OBIAD staff shall; evaluate the parameters and ensure that the conclusions of the appraisal are sound and unbiased and ascertain if (and calculate the viability of) the property value could be enhanced by renovating, changing appearance, change of zoning or other real estate related possibilities
- Executive and Asset Management Team Review
HSA’s Executive Committee and Asset Management Team will meet periodically to update information and review the properties proposed for sale. Points to be reviewed:
- All prior steps are taken
- Discuss the reports and the various viewpoints and opinions
- Come to a recommendation to the HSA’s Executive Committee to sell or not to sell
- Determine how and when the property is sold and at what price
- Property Sale Discussed with HSA Senior Board Member
OBIAD Director will discuss the request for property sale with the President of HSA and Chairman of the HSA Board. The Director will inform them of the request from the local church members and the recommendations made by the District Pastor with the District Council and OBIAD staff. If the President and Chairman see no objections, the Chairman of the board will then report to FFWPUI and seek the blessing of our founder. With that approval in place, the board will proceed to approve the sale and OBIAD will commence with the property sale.
- List Property with Local Real Estate Office
The property will be listed with a reputable local real estate office specialized in the same field as the property (Residential or Commercial). This real estate office is not affiliated with the real estate office that provided the appraisal. OBIAD will work with the community to discuss the best way to market the sale of the property and determine strategy and asking price. The property will be listed on the MLS (Multiple Listing Services).
- Successful Offer(s) Evaluated by OBIAD & HSA’s Executive Committee
Offers on the property will have to be done in writing on the standard real estate form customary by the state the property is listed. This form will indicate interested party, sale price, sale date, what percent down payment (if mortgage), letter from their bank stating the buyer is qualified for the purchase amount or a proof of funds letter and other customary details. Offer(s) will be discussed and evaluated with the listing real estate office that represents HSA’s interest. Offers need to be close enough to the appraisal value to be seriously considered. In an event of multiple offers we can decide to ask for their highest and best offer. Offers with stronger financials and higher down payments will be preferred.
- Final Decision to Sell Approved by HSA-UWC Board
Once all prior steps have been completed and successful offer is selected, approval procedures will be followed. The property details describing the property, appraisal price, contract price, method of payment from buyer and who the purchaser is will be presented to the Board. Since this document is a final document seeking approval for property sale, a thorough review should be made to ensure no missing procedures or papers.
- Legal Department to Supervise all Legal Documentation for the Sale
The sale agreement and contract documents are reviewed by OBIAD and the Legal Department. This department is in close contact with the listing real estate office, settlement company and any attorneys. The department will make sure all documents are in order.
- Property Title and Funds to HSA-UWC HQ
On the agreed sale date, the title is transferred and funds are received to HSA-UWC’s bank account.