• Purchase property from family trust

I am interested in purchasing a property that is registered under family trust instead of a single owner. What information do I need to gather to ensure the sale is legal and no body belonging to this trust can stake a claim on the property after I purchased the property and registered it on my name.
Asked 3 years ago in Property Law
Religion: Hindu

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8 Answers

1) trust needs to obtain permission from charity commissioner to sell trust property 

 

2) resolution has to be passed by trustees for sale of trust property 

 

3) registered sale deed has to be executed by the trust in your favour 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The trustees cannot sell the property without court permission.

A Trust property cannot be alienated unless it is for the benefit of the Trust and/or its beneficiaries.

The Trustees are not expected to deal with the Trust property, as if it is their private property.

It is the legal obligation of the Trustees to administer the Trust and to
give effect to the objects of the Trust.

You may refer to the latest supreme court judgment restricting the trustees to sell or alienate the trust property by clicking the following 

Khasgi (Devi Ahilyabai Holkar Charities) Trust Indore vs Vipin
Dhanaitkar | 2022 LiveLaw (SC) 623 | SLP (CIVIL) No. 12133 of 2020] |
21 July 2022 | Justices AM Khanwilkar, Abhay S. Oka and CT Ravikumar.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

  1. Property of trust can be purchased only for the benefit of beneficiaries with the  consent of all beneficiaries and if any beneficiary is minor, you need to apply for such permission from district Court. You need to check the  terms of trust deed with respect to transfer of trust property.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

- As per Delhi High Court, Trust property cannot be sold /mortgaged or exchanged without without prior permission of the court. This order is applied for all trust, whether public or private.

- Hence, if the absence of any court direction , not suggested to purchase the same. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

First of all, you have to go through the family trust deed in order to ascertain if the trust can own a property in its own name, and if so, if it can sell it to third parties. If yes, the trust should pass a resolution for the purpose of sale in accordance with its trust deed. If these conditions are satisfied, please engage a lawyer to examine the title deeds and the encumbrance certificates and obtain his/her opinion on the title of the property before purchasing it.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

Dear Client,

You can publish a notice in the local newspaper that you are going to buy this property and if anyone has any claims on the property they can come forward. Also you can file an RTI.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

You need to see the trust deed and averments about selling its property

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Usually, the title to the property has to be traced back for 30 years. ask the vendor to produce all the parent n link documents dating back to 30 years. Check the encumbrance certificate also for the relevant period. Make discreet local enquiries to your satisfaction.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

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