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REAL PROPERTY TRANSFER BY RELIGIOUS CORPORATION INVALID, CORPORATION DID NOT SEEK COURT APPROVAL FOR THE TRANSFER 2ND DEPT.

The Second Department determined summary judgment was properly awarded to plaintiff in this action to quiet title. Plaintiff religious corporation was required to get the court’s permission before selling property to defendant. Because plaintiff did not seek leave of court, its transfer of the property to defendant was invalid:

Religious Corporations Law § 12(1) provides that in order to sell any of its real property, a religious corporation must apply for, and obtain, leave of court pursuant to Not-For-Profit Corporation Law § 511 … . “The purpose of this requirement is to protect the members of the religious corporation, the real parties in interest, from loss through unwise bargains and from perversion of the use of the property” … . Here, the plaintiff, a religious corporation subject to the requirements of Religious Corporations Law § 12(1), established, prima facie, that its conveyance of the subject property to the defendants was invalid because it was made without leave of court … . Heights v Schwarz, 2017 NY Slip Op 05707, 2nd Dept 7-19-17

CORPORATION LAW (RELIGIOUS CORPORATIONS, REAL PROPERTY TRANSFER, REAL PROPERTY TRANSFER BY RELIGIOUS CORPORATION INVALID, CORPORATION DID NOT SEEK COURT APPROVAL FOR THE TRANSFER 2ND DEPT)/REAL PROPERTY (RELIGIOUS CORPORATIONS, REAL PROPERTY TRANSFER, REAL PROPERTY TRANSFER BY RELIGIOUS CORPORATION INVALID, CORPORATION DID NOT SEEK COURT APPROVAL FOR THE TRANSFER 2ND DEPT)/RELIGIOUS CORPORATIONS (REAL PROPERTY TRANSFER BY RELIGIOUS CORPORATION INVALID, CORPORATION DID NOT SEEK COURT APPROVAL FOR THE TRANSFER 2ND DEPT)/NOT FOR PROFIT CORPORATION LAW (RELIGIOUS CORPORATIONS, REAL PROPERTY TRANSFER, REAL PROPERTY TRANSFER BY RELIGIOUS CORPORATION INVALID, CORPORATION DID NOT SEEK COURT APPROVAL FOR THE TRANSFER 2ND DEPT)

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