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
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.
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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
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.
- 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.
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.
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.