Legal Question in Real Estate Law in Texas

Release of Deed by Trustees

My grandfather bought and paid for a church, there is no mortgage on it. There are 7 trustees listed on deed of which one is original Pastor who is now on his death bed. The co-pastor (now the new pastor) used this church as collateral to purchase a bigger church. New pastor is not a trustee. The bigger church that was purchased is now up for sale due to non-payment of taxes and will net about $700k profit if sold within 6 months. If it doesn't sell, all will be lost in foreclosure. Remaining 6 trustees had no knowledge of original church property being used for collateral. And, pastor changed church name with IRS, received a new tax ID # but deed & new mortgage still under old name.

We are concerned new pastor is committing fraud. Before becoming co-pastor, he had a business that went under due to non-payment of taxes and has owed IRS monies.

Does he have a right to sign deed with his name only without written consent from remaining 6 trustees? These 6 trustees are not listed anywhere in the new deed like they were originally when my grandfather purchased the property originally. Please help and thank you for being my starting point to resolve this horrible situation.


Asked on 6/28/06, 8:23 am

1 Answer from Attorneys
Charles White Charles G. White

Re: Release of Deed by Trustees

}}} Does he have a right to sign deed with his name only without written consent from remaining 6 trustees? {{{

Probably not. He may have used forged or fake resolutions or documents in connection with getting the new church. Surely it was no surprise that the new church was being purchase. Did the congregation believe that the new church was purchased through the gift of a single contributor. Financial institutions are not apt to be making loans of that size without the signatures of proper parties and documents. Something seems to be missing from your presentatoin of the facts.

My recommendation is to have the current trustees to meet with a lawyer NOW. Have all available documents, minutes, etc. for him to review. In the meanwhile you also should check with the county clerk to see what documents have been filed that have the church's name and trustees names on them. It is possible that a lot of forgeries may exist. Still though, there is the lingering question about how all of this could be a surprise. Where did the congregation and trustees think that the new church came from?

Good Luck!

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Answered on 6/28/06, 9:43 am


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