There has been an increasing trend of property ownership disputes between local churches and their national organizations. As an individual congregation decides to break away from the national church or regional diocese, it 
often prefers to keep its current location and facility because of equity or location.
The parent religious organization does not always agree to this, and a dispute over who is the owner specified on the deed ensues. A ruling last month regarding one specific case in California brought some clarification to similar cases.
Frequently, the dispute is more contentious because the underlying reason for the church to withdraw from the national organization is a bitter philosophical or religious issue.
A Baptist church in Pennsylvania is facing a challenge by its governing body in Delaware who is looking to void a prior deed. The pastor of the church is claiming the Delaware group is looking to steal its property. In this case the pastor was told of matters “both spiritual and secular that displeased the church,” and fired.
The common issue which makes these conflicts unclear is the vesting of the deed. The deed to a church property is normally vested in the name of the church. However, the underlying ownership of the organization is claimed by both the local pastor and congregation, as well as the governing body.
In Colorado, a new trial started last week over the disputed ownership of Grace Church & St. Stephen’s. Previous to these measures the Bishop and Diocese of Colorado had made efforts to remove the vestry (the parish’s governing board), dismiss the Rev. Donald Armstrong as rector, and take possession of the church’s real property. Subsequent actions by the Episcopal Diocese against Grace Church & St. Stephen’s have been to initiate civil lawsuits against 18 separate individuals in the congregation including vestry members, staff, and volunteers.
It is likely that local churches will look to clarify ownership of church property more clearly in future agreements.
