The singer wanted to turn an old convent into a home, however the remaining nuns were not happy to go ahead with the sale after watching some of her music videos.
Two of the remaining five claim they own the convent and can chose who to sell it to, according to The Times.
The nuns sold the property to a Los Angeles restaurateur, Dana Hollister, for around $15.5 million (around £9.8 million).
However it is reported that Katy Perry had reached a separate deal with the Los Angeles Roman Catholic Archbishop, Jose Gomez, to buy the building.
It is even reported that Katy Perry visited the nuns and showed them her 'Jesus' tattoo.
But speaking to a local paper, Los Angeles Times, Sister Rita Callanan, 77, said she had watched the videos and "wasn't happy with any of it."
She also expressed that she had not been impressed with the star's performance at the Super Bowl, when she flew around of a shooting star.
At present Dana Hollister has moved in but a lawyer for the Los Angeles archdiocese has now become involved.
Lawyer, J Michael Hennigan, says the power to make the decision of ownership lies with Archbishop Gomez, in accordance with a 2002 Vatican ruling.
Katy Perry's case will be heard in court next month.
