Property sold by Trust
Querist :
Anonymous
(Querist) 13 December 2010
This query is : Resolved
If Mr Ramaiah is executed sale deed on behalf of a Trust, is it compulsory to obtain a copy of the Trust deed and study powers of the trust to sell the property and also Resolution passed by the Trustee authorising Mr. Ramaiah to execute the sale deed on behalf of the trust.
If the trnsaction was done on 12.3.1997
since it is more than 12 years we need not insist--says the seller. Law governing company and TRust are different. Comment please. What risk is purchasing such property without those documents??
Parveen Kr. Aggarwal
(Expert) 13 December 2010
1. Nobody can transfer a property that is either not owned by it or it has no power to tranfer it. In case the Trust is not the owner of the property or its Trust Deed does not provide for transfer of its property, how can a valid title be passed in favour of the alleged transferree.
2. In case the Trust owns the property and its Trust Deed provides for such transfer, even then if Mr. Ramaiah is not duly authorised to execute sale deed, the act being unauthorised does not transfer a valid title.
3. An unauthorised transaction howsowever old does not become valid merely with the passage of time.
4. Without verifying all the aspects, you will be at peril of loosing your money. Caveat Emptor.
Querist :
Anonymous
(Querist) 13 December 2010
Thank you for your reply at such a short notice.
In the present case, purchaser had made payment to the Trust and not to Ramaiah as per narration in the sale deed & DD received in the name of the trust signed by Ramaiah as authorised signatory.
Since the trust deed and copy of resolution, authority letter were not obtained by that purchaser (now he is seller), is it safe to buy
Should we insist for these documents or put a public notice in the leading dailies about sale of the property and a copy of this ad is sent to the TRust, by regd.post A/D and if we do not get any objection within 15 days from the date of receipt of our letter as evidenced by the A/D card, can we proceed without these documents?
Querist :
Anonymous
(Querist) 13 December 2010
open
Advocate. Arunagiri
(Expert) 13 December 2010
Send a notice to the Trust to produce the documents. You can not proceed without these documents. Mr.Ramaiah has to produce his authority to sell the property. Other wise you will be in problem.
niranjan
(Expert) 13 December 2010
If the property is Trust Property,same could not be sold without permission from the Charity Commissioner and if it is sold the transfer is invalid.
G. ARAVINTHAN
(Expert) 19 December 2010
Trust have to approach Court and obtain permission from Court to sell the property. Otherwise the sale is not a valid one
