PURCHASING A SITE FROM AN ASSOCIATION
Querist :
Anonymous
(Querist) 21 October 2009
This query is : Resolved
Hello! all
Greetings,
We've a proposal to purchase a site from as association, at present we're in lease of 10 years in that site, 5 years are completed. Now, that association wants to sell that site and take another site in another place. As we're in position in that site and lease period is also in active and we've constructed some sheds & an office in that site.
Now, what are the precautions, we've to take to purchase that site, as it is an associations site.
The body of association has elected the president/secretary as the person to sign on the sale document.
Please advise us how best we can do
Thanks & Regards
Guest
(Expert) 21 October 2009
Since you had been in the position of 5 years as a lessor without any problem, it is presumed that the lessee association is empowered to grant lease. However, it is prudent to go through the bye-laws of the association. The main clauses which need to be concentrated are (1) Whether the associations' immovable property can be alienated by way of sale, (2) If so, who shall be the authorised signatories to execute such alienation, (3) Is there any restricting clause, such as, the property is to be sold 'among members' or 'as decided by the elected executive council' or 'special resolution needed for such execution'.
A copy of the bye-laws can be sought from the association. For double-assurance, it is advisable to seek/read a copy from the Registrar of society.
Newspaper publication through an Advocate for purchase of such property can also be given.
Sudharsan.m
(Expert) 21 October 2009
i agree with Mr.siva meanwhile ensure that the above said property is free from mortgage or encumbrances and is there any legal battle pending before the jurisdictional court.
Querist :
Anonymous
(Querist) 27 October 2009
Any further suggestions, please
