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Nonprofit Law/Non profit selling realestate, sort of under the table.


I saw a home that was listed for one day on MLS. I did a drive.
I called immediately about a contract, the realtor said that a contract had been accepted. On line it said pending. No showings available. No photos! ( in 1 day) I knew the house.
I asked why they wouldn't wait for other offers to come in ? Considering people are creating bidding wars in Dallas tx.  She said," that a deal had been in the works pror to the listing." I asked, "then why list it?" There wasn't a good answer other than it's under contract.
I found out on the local  DCAD, that a non profit organization had owned it for 5 years. The non profit  relocated to a new area, the same area where the realtor is located. ( Southlake, tx)
Is the a law in Texas that before a nonprofit sells a property that it has to be listed to the general public for sale? If this is the case, this has been a scam!  
I am not very happy about the way this is handled.
The last communication is, I sent an email asking if I could put in a back up offer? so far there has not been a response.
Thank you, lisa

I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your question about a law in Texas is, of course, a state law matter and states may differ somewhat with how they would treat such issues. Even though this forum is not for such state law issues, I will inform you that I have never seen any state law (and I have read a lot of them) that requires a nonprofit to list real property that it wants to sell.  However, many states do require a local court to approve the sale and one of the factors that the court would want to look at is whether the public was given a chance to bid up the price.  It would also want to inquire why the real estate agent is getting a commission when the sale appears to have pre-arranged privately.

The  Texas Code sections for "Nonprofit Corporations" are available at and specifically see Sec. 22.252 which is entitled, "APPROVAL OF SALE OF ALL OR SUBSTANTIALLY ALL OF ASSETS", which generally would apply when there is sale of an organization's real property.

Texas does not appear to require court approval, but you can check with a local attorney.

Complaints could go to your State's Attorney General's Office as that office generally oversees charities within the state. If the action is criminal then your local district attorney may be
interested in prosecuting as at
which is a pdf file of 4 different news stories.

Harvey Mechanic
Attorney at Law

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather more information.

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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