Ongar Town Council is considering the future of the chapel in Ongar Cemetery.
The matter is being discussed again several years after an initial idea to possibly use the building as a museum was not progressed.
The council is to seek the views of Historic England over the building.
Councillor Lawrence Mendoza said: "We've got a building that's falling into disrepair. It was going to cost over £80,000 to put it right and it's just being used as a store. It doesn't make sense."
He added: "We're in a position where we have this building that people have tried to get grants on, and haven't succeeded. We have to decide what we are going to do with it.
"It doesn't have any use for people visiting the cemetery. We could sell it with conditions that whoever buys it has to make it good."
Locum clerk Michael Letch told Thursday's council meeting the chapel had been in use since 1860.
Currently the part of the building which is not consecrated is being used as a groundsman's store by the council.
He added that because of what the building is, where it is, and it being surrounded by consecrated land, the council - or any other owner - would be very limited to what it could do with it.
Councillor Jane Battersby said: "It's a real conundrum."
It was also suggested that an antique dealer could be approached over the unique turntable which is in the chapel before deciding any next steps.
The council has an earmarked £20,000 budget which could be spent on maintenance of the building, or to undertake repairs such as to the roof.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here