Can I terminate a lease for religious reasons

[TomAnderson]

What is the name of your state (only U.S. law)? GA

My church owns another church property in a nearby city and we lease (month-to-month lease) it to a local church there for both church services and a day care center. The lease states that either party has the right to terminate the lease with a 60-day notice. We would be required to give reason for terminating the lease. A member of our leadership team wants to terminate the lease with this church because their religious beliefs differ drastically from ours. Is this legal? Could we be sued if we tried to terminate the lease for this reason?

 

[LdiJ]

What is the name of your state (only U.S. law)? GA

My church owns another church property in a nearby city and we lease (month-to-month lease) it to a local church there for both church services and a day care center. The lease states that either party has the right to terminate the lease with a 60-day notice. We would be required to give reason for terminating the lease. A member of our leadership team wants to terminate the lease with this church because their religious beliefs differ drastically from ours. Is this legal? Could we be sued if we tried to terminate the lease for this reason?

I would definitely recommend that your leadership speak to a real estate attorney before attempting anything like that. I think it could possibly put you into a dangerous position.

 

[justalayman]

were you aware of the issue when the lease was entered into? If so, then you don't have a right to bring it up now.

 

[LdiJ]

were you aware of the issue when the lease was entered into? If so, then you don't have a right to bring it up now.

Even if they were not aware...I think it would be risky to say anything to anyone without consulting with a real estate attorney first.

 

[justalayman]

Even if they were not aware...I think it would be risky to say anything to anyone without consulting with a real estate attorney first.

absolutely. Just trying to cut to the chase a bit if possible.




Other than that, I suspect they could not terminate the lease based on religious preferences because that little thing we have about not being able to discriminate based on religion in our laws. While churches get a break from those laws sometimes, I suspect it would be argued that if you rented the space to another church it was your obligation to ensure their activities fell within your acceptable activities so claiming, now, that they are no longer acceptable is likely to be a no go.

 

[single317dad]

As far as leasing to this unsavory group in the first place, the Fair Housing Act contains a specific religious exemption in 42 USC § 3607 (a) for non-commercial purposes. I'm not sure if property owned and leased to others falls under commercial use or not (Maybe not; seems like that would apply more to a church owning and leasing out a strip mall). To my knowledge, the term is not clearly defined in the code.

Anyway, my point is, if the church was barred from discriminating in the rental process, they'd certainly not be able to discriminate now.

 

[LdiJ]

As far as leasing to this unsavory group in the first place, the Fair Housing Act contains a specific religious exemption in 42 USC § 3607 (a) for non-commercial purposes. I'm not sure if property owned and leased to others falls under commercial use or not (Maybe not; seems like that would apply more to a church owning and leasing out a strip mall). To my knowledge, the term is not clearly defined in the code.

Anyway, my point is, if the church was barred from discriminating in the rental process, they'd certainly not be able to discriminate now.

That "if" is the big elephant in the room...which again, is why they should not proceed without advice from a local real estate attorney. Its also a fairly poor financial decision if the tenant is paying their rent on a regular basis. The market for leasing churches has to be fairly limited.

 

[Gail in Georgia]

A termination of a "tenancy at will" lease in Georgia (our version of a month to month tenancy) DOES NOT require a reason for this termination with residential leases. It simply requires a 60 day written notice from the landlord (30 days from the tenant).

What the OP needs to confirm with a real estate attorney is whether a COMMERCIAL lease (and I'm assuming this is a commercial lease he is talking about) has this requirement.

Gail

 

[FarmerJ]

Your church council / board has a tenant in there who it appears is using the property in a way the lease allows so I suggest your church council/ board take a second look at how long this property could sit vacant drawing attention to the fact that it is empty = and drawing attention of the ones who have no problem destroying walls etc to rip off the copper and any thing else of architectural value. Buildings designed to be churches are one of the hardest types of real estate to rent out or sell (outside of MASSIVE big box stores that get closed) As long as the lease is not for a place that people live in then what ever the terms of the lease should stand and if a notice period is defined then there would not be a reason needed to end it BUT honestly if the truth got out that as landlords your church council had such a wishy washy reason such as doctrine differences as reason to end the lease Ill bet its going to make you all look like very bad in your community.