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CATHOLIC ARCHDIOCESE
OF MELBOURNE
Property Resources Manual 2014
Table of Contents
Preamble
3
Property Services – What do we provide?
3
Stewardship and Extraordinary Administration
3
The Roman Catholic Trusts Corporation for the Diocese of Mellbourne
4
Archdiocesan Procedure for Extraordinary Administration
4
Custody of Documents
4
Valuation Advice
4
Land Acquisition
5
Goods & Services Tax (GST) & Real Property
5
Rates & Taxes
5
Insurances
5
Finances
6
Application Forms
7
Application to Sell Property
Application to Purchase Property
11
Application to Lease/Licence Property
15
Document Checklist19
Version History
Version
Date
1
19/11/08
2
2/8/10
3
20/08/12
4
28/06/13
5
1/4/14
2
Comments
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Property Resources Manual
1. Preamble
2. Property Services – What do we provide?
This property resources manual has been prepared in order
to assist Parishes and other bodies within the Archdiocese of
Melbourne in dealing with their respective property issues.
The Property Services team provides a range of services to
serve the Archdiocese of Melbourne and is available to help
you with all your property questions.
The Property Services department provides support to the
Archbishop and staff, Parishes and other Church organisations
within the Archdiocese of Melbourne with specialist
professional and reliable advice over a wide spectrum of
property related issues including:
The information provided in this resources manual streamlines
the Diocesan procedures relating to property matters. Please
read carefully the information relevant to the transaction
you wish to undertake. If you still have queries Archdiocesan
property staff are available to assist.
Our office is located at Level 2, 340 Albert Street, East Melbourne,
however all correspondence should be sent to:
Catholic Archdiocese of Melbourne
PO Box 146, East Melbourne 8002
Attention: Property Services
Tel: (03) 9926 5618
Facsimile: (03) 9926 5739
Email: [email protected]
•Sale of property (utilising highest and best use practices,
negotiation and appointment of agent, preparation of
contracts, valuation advice, conveyancing etc)
•Purchase of property (property search, procurement and
review of valuation advice, due diligence, negotiation,
conveyancing…)
•Leasing / Licensing to or from other bodies
•Project Management of Land subdivision and other
development
•Advice and assistance on heritage and planning matters
(for example town planning applications, objections,
VCAT hearings, rezoning applications / planning scheme
amendments…)
•Advice on how to maximise the utility of property in
a mission context, see Designing for Mission for the
recommended Parish process to determine property
changes in the context of a Parishes mission priorities
•Central repository for all information and records for
property held by The Roman Catholic Trusts Corporation
for the Diocese of Melbourne
•Advice on all other property related issues (fencing,
adverse possession claims, site remediation etc)
3. Stewardship and Extraordinary
Administration
Independent of any secular power, the Archdiocese has the
inherent right, to acquire, retain, administer, and alienate
temporal goods in pursuit of its proper objectives (c. 1254).
Temporal goods are in essence the assets and property held
in common stewardship for the benefit of the Church and
furtherance of its earthly ministry.
The Archbishop supports the concept of proper stewardship
of temporal goods and the important function that Property
Services provides in the assistance to Parishes in the delivery of
this objective.
The role of Property Services is to serve the Archdiocese – we
are here to serve you!
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4. The Roman Catholic Trusts Corporation for
the Diocese of Melbourne (RCTC)
1.7
While at Canon Law a Parish Priest is the administrator of the
Parish and therefore has the authority to convey, assign or
transfer property, legislative provisions in Victoria provide that
all property of the Diocese is held by The Roman Catholic Trusts
Corporation for the Diocese of Melbourne (RCTC) as trustee for
the Roman Catholic Church. This has been the position since
the introduction of the Roman Catholic Trusts Act 1907 (Vic).
The effect of this legislation is that only trustees of the RCTC
have the authority to execute documentation pertaining
to property utilised by the Archdiocese that is valid in Civil
Law. Those documents include but are not limited to lease
agreements, mortgages, licences, contracts of sale, covenants,
easements, and town planning applications amongst others.
The RCTC is also the legal entity upon which it initiates
and defends any legal action in the name of the Catholic
Archdiocese of Melbourne and upon that land which it holds
under trust. The execution of the documents relating to
property will be facilitated by Property Services, providing that
procedures outlined in this manual have been adhered to and
necessary approvals granted.
5. Archdiocesan Procedure for Extraordinary
Administration
The following information provides the procedure for
applications to sell, purchase and lease / licence property:
1.1
Parish Priest consults with the Parish Finance Council
/ Committee and obtains written consent from the
relevant Regional Bishop
1.2
Complete appropriate Application Form
1.3
Submit completed Application Form together with
covering letter addressed to the Archbishop for
approval. If you need help preparing your proposal
please contact Property Services
1.4
The Archbishop will forward the proposal to the
Executive Director Administration and Property
Services for their consideration
1.5
Property Services consults with Parish, appraises
proposal and offers advice
1.6
Property Services prepares a report on the proposal
which is then distributed to the:
• Regional Bishop
• Vicar General
• Planning Building and Finance Committee (PBFC)
• Secretary of the Curia
The report offers a recommendation as to whether the
proposal should be accepted.
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C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
The Property Services report, once distributed,
requires a recommendation to the Archbishop from
some or all of the following bodies:
• The Regional Bishop
• The Planning, Building and Finance Committee
• The Curia
• The Diocesan Finance Council
• The College of Consultors
• The Archbishop’s Council of Priests
1.8
Once approval has been granted from the above
bodies, the report on the proposal is then forwarded
to the Archbishop for his approval. The Archbishop’s
approval, should he give it, takes the form of a letter
to the Parish Priest informing him that approval has
been granted and that the proposal may commence.
Any lease / licence proposed with a lease term in excess
of nine years requires the same permission as for acts of
extraordinary administration.
Those lease / licence proposals less than nine years require
the consideration of the Executive Director Administration and
Manager, Property Services.
6. Custody of Documents
All original documents and other pertinent contractual
documentation will be held by Property Services for
safekeeping. Property Services at request can provide a copy
of these documents.
7. Valuation Advice
The provision of expert valuation advice is routinely sought
by Property Services for and on behalf of Parishes, Colleges
and Archdiocesan agencies to assist in purchase and sale,
pre-purchase advice, GST margin scheme assessments,
compensation and rental advice.
The alienation or “transfer of ownership” or any transaction
which may jeopardise ownership of Church property (which
includes the leasing of a property) is subject to Canon Law.
For an alienation to be valid there is a requirement amongst
others for “written expert valuations of the goods to be
alienated” (c.1293).
To accord with the norms of Canon Law, any report submitted
by Property Services on behalf of a Parish or other body seeking
approval for alienation (including acquisition submissions)
incorporates a primary Diocesan valuation assessment.
A secondary or “check” valuation may also be required
because the value exceeds the maximum sum for Australia as
determined by the Australian Catholic Bishops Conference. Property Resources Manual
While valuation advice may be sought directly by the Parish,
preferably it should be obtained by Property Services, noting
that the latter has familiarity in appropriately instructing
valuers and reviewing the advice undertaken for specific
purposes and property types. Please contact Property Services
if you need assistance in this regard.
8. Land Acquisition
A scheme has been established to assist in the purchase of
land for the establishment of new Parish and educational
facilities (Land Acquisition Fund). The fund is financed by
means of a levy of fifteen (15) percent on sales of all property.
The fund commenced operation on 1st July 2003 and applies
to sales of property from 1st January 2003.
The following procedures have been implemented for the
application of the 15% levy on the sale of property:
•Property Services will notify the Finance Office when a
property has been listed for sale and again when the
property has been sold and settled
•The application of the levy will be considered by the
Finance Sub-Committee of the Diocesan Pastoral and
Development Fund (DPDF). The Sub-Committee will
recommend that the levy be charged in accordance with
the announced policy
•The Commissioners of the DPDF will consider and, unless
there are compelling reasons against doing so, endorse
the recommendations of Sub-Committee
•The Finance Office will issue invoices to the Parish Priest
or to the Chair of the Canonical Administrators (should
the land be held in common) in accordance with the
minutes of the meeting of DPDF Commissioners
•Payment will be forwarded to the Finance Office. With
the agreement of the Parish Priest or, if relevant, the
Chair of the Canonical Administrators the payment may
be deducted before the proceeds of settlement are
forwarded to the appropriate recipient
•Should a Parish believe that it has a valid reason to appeal
against the application of the levy it should forward this
objection, with reasons, to the Deputy Chair of the DPDF
who will forward it to the Finance Sub Committee for
consideration
•After its consideration, the Sub-Committee will make its
recommendation to the DPDF Commissioners. Should
a variation of the levy be recommended an amended
invoice will be issued by the Finance Office
9. Goods & Services Tax (GST) & Real Property
Since the introduction of the Goods & Services Tax (GST) on
1st July 2000, The Roman Catholic Trusts Corporation for the
Diocese of Melbourne and Parishes within the Diocese of
Melbourne may be liable to pay GST to the Australian Taxation
Office (ATO) on its sales or leases of property and, where
entitled, can claim back amounts paid in respect of GST by
way of input tax credits from the ATO on its purchases.
Property Services will assist Parishes in procuring advice to best
determine how to treat various property related dealings and
transactions from a GST perspective.
Property Acquisition & Sale
As the RCTC holds legal title to property within the Diocese
of Melbourne, it is also treated as making the supply when
selling property on behalf of a Parish.
Accordingly, Property Services will issue tax invoices relating to
the supply in the name and ABN of the RCTC in its capacity as
trustee. The RCTC will also pay the relevant amounts in GST
(and claim the relevant input tax credits) to the ATO in respect
of property sales.
Lease & Licence
With respect to the making of a supply under any lease or
licence of property held on trust to third parties, the Parish will
be directly responsible for the issue to third parties, in its Parish
name, all tax invoices and adjustments relating to the supply.
The Parish will also pay the relevant amounts in GST (and
claim the relevant input tax credits) to the ATO in respect of
leasing activities.
10. Rates & Taxes
Exemptions apply under varying legislation for properties
that are used for religious, educational and charitable
purposes. Such levies may include council rates, stamp duty
and land tax.
Property Services will co-ordinate the application for these
exemptions at the time of acquisition, where applicable;
however will also assist any Parish that believes it has a valid
reason against any existing levy on its property.
11. Insurances
Within Victoria, the purchaser of property generally takes
possession & title to the property as at settlement. To avoid
any possibility for loss, it is recommended that Parishes obtain
appropriate property insurance coverage no later than 5
days prior to settlement. An insurance cover note should be
arranged with an insurance company or an insurance broker,
the sum insured being the estimated replacement cost of the
building and its contents.
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In the event that Catholic Church Insurances (CCI) is to be the
insurer, CCI will automatically cover any property purchased
even if they are not notified until after the settlement date.
The following application forms and procedures have
been established to accord with Canon Law and assist the
Archdiocese in its consideration of all proposals.
The cover note should be in the name of the Parish when a
policy application is made. Any further queries in providing
a quotation or issuing a policy may be directed to Catholic
Church Insurances on 1300 655 001.
With a complete application being filed, two month’s
advance notice is required for the required approvals to
be obtained.
14. Approvals
12. Finances
To borrow funds for the purchase of property (assuming
Archbishop approval has been given) the buyer should contact
the Catholic Development Fund on (03) 9411 4200 as soon
as possible to arrange financial approval. The Fund’s website,
www.melbcdf.com.au, has online information and tools to
assist the purchaser to determine your borrowing needs ie,
Loan repayment calculators. CDF offers competitive interest
rates and has funded projects in the Archdiocese of Melbourne
for over 50 years.
13. Application Forms
In order to facilitate the various property transactions
undertaken by Parishes, Schools and other bodies within the
Archdiocese it is essential that care be given to completing
the correct application form. There are individual application
forms for the following:
1.Approval to sell property
2.Approval to purchase property
3.Approval to lease / licence
6
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
An approval for the proposed sale, purchase, lease or
licence of land:
14.1 Operates from the date on which the approval
is granted, unless another date is specified in the
approval; and
14.2 Expires if the proposal is not effected
(as evidenced by the absence of executed
documents within 12 months after the date on
which the approval commences), unless another
date is specified in the approval.
Before an approval expires, the Archbishop may grant
an extension of time to complete the proposal, at his
absolute discretion. If time is extended, the extension
operates from the day the approval expires and is for the
period stated in the Archbishop’s correspondence.
15. Designing for Mission
This resource tool can be downloaded from
www.cam.org.au or a hard copy can be provided upon
request by Property Services.
Application to sell property
The attached application form is prepared for the following
purposes:
• Sale of Parish / School / College property
Please read the notes below before completing the attached
application form.
Any queries relating to this application should be directed to
the Archdiocesan Property Services.
1. APPLICANT:
(Name and suburb of Parish or School/College)
1. All applications must have the approval of the relevant
authority (Parish Priest, Regional Bishop, Archbishop)
2. All sections of the application form (where relevant) must
be completed.
3. No negotiations can commence until such time as all
approvals have been granted.
4. Any Contract of Sale must be signed by The Roman
Catholic Trusts Corporation for the Diocese of
Melbourne. Only trustees of the Corporation have the
authority to execute these documents.
2. AUTHORITY:
(a) Parish Priest
(b) President Canonical Administrator
(c) School / College Principal
3. PROJECT SUMMARY:
D E TA C H A P P L I C AT I O N H E R E
(a) Location and description of property
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Application to sell property
(b) Give reasons for alienation and purposes to which the proceeds will be put. Please include you Parish Missional ‘DNA’
from Designing for Mission and your Sites/Buildings Inventory and/or Property Strategy form as appropriate.
(c) What is the estimated net proceeds of sale?
(Please contact Property Services to assist in determining the market value of the property.)
4. PROPOSED DATE OF SALE:
/
/ 20
5. CONSULTATIONS:
(a) Has the Parish Finance Committee been advised and
approval granted?
6. SIGNATURE AND AUTHORITY OF PERSON MAKING
APPLICATION
o Yes
Name (Please Print)
o No
(b) Has the Regional Bishop been advised and approval
granted?
o Yes
If Yes, please provide written
approval
o No
Authority (Parish Priest, Canonical Administrator, Principal)
(c) School / College projects only
(i) Has the Catholic Education Office (CEO) been advised
of proposed sale?
Finance Planning
o Yes o No
o Yes o No
8
Date
(d) Is there likely to be any Australian Government interest
in the property through the school having received
capital funding assistance?
o Yes
Signature
o No
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Application to sell property
Please attach any
relevant plans/documents
PR OPER T Y R ES OUR CES M ANUAL 2014
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10
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Application to purchase property
The attached application form is prepared for the following
purposes:
• Purchase of Parish / School / College property
Please read the notes below before completing the attached
application form.
Any queries relating to this application should be directed to
the Archdiocesan Property Services.
1. APPLICANT:
(Name and suburb of Parish or School/College)
1. All applications must have the approval of the relevant
authority (Parish Priest, Regional Bishop, Archbishop)
2. All sections of the application form (where relevant) must
be completed.
3. No negotiations can commence until such time as all
approvals have been granted.
4. Any Contract of Sale must be signed by The Roman
Catholic Trusts Corporation for the Diocese of Melbourne.
Only trustees of the Corporation have the authority to
execute these documents.
2. AUTHORITY:
(a) Parish Priest
(b) President Canonical Administrator
(c) School / College Principal
3. PROJECT SUMMARY:
D E TA C H A P P L I C AT I O N H E R E
(a) Location and description of property (include real estate agent details where applicable)
PR OPER T Y R ES OUR CES M ANUAL 2014
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Application to purchase property
(b) Background Information (state reasons for seeking to acquire this property). Please include you Parish Missional ‘DNA’
from Designing for Mission and your Sites/Buildings Inventory and/or Property Strategy form as appropriate.
(c) What is the estimated purchase price and capacity to finance the acquisition?
(Please contact Property Services to assist in determining the market value of the property).
4. PROPOSED DATE OF ACQUISITION:
/
/ 20
6. FUNDING
5. CONSULTATIONS:
(a) Has the Parish Finance Council/Committee been
advised and approval granted?

o Yes

o No
(b) Has the Regional Bishop been advised and approval
granted?
$
o Yes
$
o No
If Yes, please provide written
approval


(c) School / College projects only
$
(i) Has the Catholic Education Office (CEO) been advised
of proposed acquisition?

Finance Planning
12
o Yes o No
o Yes o No
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Australian Government Grant
$
Supplementary Capital Funding
Loan – Catholic Development Fund
Parish Cash Reserves
School Cash Reserves
$

$
Other (please specify)
Application to purchase property
7. FINANCIAL FEASIBILITY:
(a) All Projects
Has the previous year’s Parish Annual Report been submitted
to the Diocesan Finance Office?
o Yes
o No
(Please submit with application)
(b) Parish Projects only
Has the five year Cash Flow Report been submitted to
Diocesan Finance Office?
o Yes
o No
(Please submit with application)
(c) School / College projects only
(i) Has application been made for CEO interest factor
(subsidy)?
o Yes
o No
(ii) Has the CEO been provided with all relevant financial
information?
o Yes
o No
(iii) Has an application been made for a loan through
the CDF?
o Yes
o No
8. SIGNATURE AND AUTHORITY OF PERSON MAKING
APPLICATION
Name (Please Print)
Signature
Authority (Parish Priest, Canonical Administrator, Principal)
D E TA C H A P P L I C AT I O N H E R E
Date
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C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Application to lease/licence property
The attached application form is prepared for the following
purposes:
• Lease or Licence of Parish / School / College
property to or from other bodies
1. All applications must have the approval of the relevant
authority (Parish Priest, Regional Bishop, Archbishop)
2. All sections of the application form (where relevant) must
be completed.
Please read the notes below before completing the attached
application form.
3. No negotiations can commence until such time as all
approvals have been granted.
Any queries relating to this application should be directed to
the Archdiocesan Property Services.
4. Any Lease or Licence Agreement must be signed by The
Roman Catholic Trusts Corporation for the Diocese of
Melbourne. Only trustees of the Corporation have the
authority to execute these documents.
1. APPLICANT:
2. AUTHORITY:
(Name and suburb of Parish or School/College)
(a) Parish Priest
(b) President Canonical Administrator
(c) School / College Principal
3. PROJECT SUMMARY:
D E TA C H A P P L I C AT I O N H E R E
(a) Location and description of property (include real estate agent details where applicable)
PR OPER T Y R ES OUR CES M ANUAL 2014
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Application to lease/licence property
(b) Background Information (state reasons for seeking to lease / licence and how this will improve your Parish Mission).
Please include you Parish Missional ‘DNA’ from Designing for Mission and your Sites/Buildings Inventory and/or Property
Strategy form as appropriate.
(c) What is the estimated term of the agreement, anticipated rental and requirement for any special conditions? (Please
contact Property Services to assist in determining the market rental value of the property).
4. PROPOSED DATE OF LEASE / LICENCE:
/
5. CONSULTATIONS:
(a) Has the Parish Finance Committee been advised and
approval granted?
o Yes
o No
(b) Has the Regional Bishop been advised and approval
granted?
o Yes
o No
If Yes, please provide written
approval
(c) School / College projects only
(i) Has the Catholic Education Office (CEO) been advised
of proposed lease / licence?
Finance Planning
o Yes o No
o Yes o No
d) Is there likely to be any Australian Government interest
in the property through the school having received
capital funding assistance?
o Yes
16
o No
C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
/ 20
6. SIGNATURE AND AUTHORITY OF PERSON MAKING
APPLICATION
Name (Please Print)
Signature
Authority (Parish Priest, Canonical Administrator, Principal)
Date
Application to lease/licence property
Please attach any
relevant plans/documents
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C ATHOLI C A RC HDI OC ESE OF MELBOUR NE
Document checklist
Completed Application Form........................................................................................................
Parish Missional ‘DNA’ Form.........................................................................................................
Sites/Building Inventory and/or your Property Strategy.................................................................
Latest Annual Financial Statement................................................................................................
Five (5) year cash flow (incorporating proposed project)...............................................................
Drawings:
Site/masterplan......................................................................................................................
Floorplans/elevation...............................................................................................................
Property Maintenance Plan...........................................................................................................
Cost Plan Estimate........................................................................................................................
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CATHOLIC ARCHDIOCESE
OF MELBOURNE
Property Services, Level 2, 340 Albert Street, East Melbourne, VIC 3002
All correspondence to Property Services, Catholic Archdiocese of Melbourne, PO Box 146, East Melbourne, VIC 8002
Email: [email protected]