Ms Perry first tried to buy the Los Feliz convent from the Archbishop in Los Angeles in 2015, but before the sale was finalised, two of the five sisters from the Immaculate Heart of Mary (IHM) who claimed ownership, sold to a local developer, Dana Hollister.
The LA archdiocese sued the sisters, who said only they had the right to sell it, despite not living there since 2011, and won.
They also said Ms Hollister's actions prevented the sale to Ms Perry, who had offered $14.5m.
A jury agreed with Ms Perry and the Catholic Church that Ms Hollister had acted with malice, and awarded $10m to the parties, which will be split with one-third going to the singer and two-thirds to the church.
In a statement from the archdiocese, to the Angulus website, the church explained it took action because Ms Hollister had paid $44,000 for the property, and they felt the sisters had been taken advantage of.
The archdiocese statement adds: "Hollister's actions left the IHM Sisters with almost nothing for their property, while she took possession of their former convent to prevent the sale of the property to singer Katy Perry who had presented a cash offer for $14.5m for the Waverly property and a replacement for the House of Prayer of Priests.
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