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Check Deed Before Renting Property

Some deeds contain restrictions prohibiting religious facilities.

Key point. Churches should not rent or purchase property without carefully confirming that operation of a church will not violate any restrictions or covenants set forth in the deed to the property.

A Texas court ruled that a church was justified in abandoning a rented building upon learning that a restriction in the owner's deed prohibited him from renting the property to a church. A development company developed a tract of property, and imposed various deed restrictions on sites that it sold. Those restrictions specified that the property was for the operation and maintenance of any lawful, commercial retail business or offices. Religious facilities were not approved for the location. An individual purchased a site and constructed a building which he later rented to a church, despite his knowledge of the restrictions in his deed. After signing the lease agreement on behalf of his ...

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  • September 1, 1997

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