Sale Deed on behalf of a private limited company
CHEENI
(Querist) 22 March 2008
This query is : Resolved
I am planning to buy a property which is in the name of the MD on behalf of his Private Limited Company. Apart from him his wife is also the Director of the Company. The Board of this Company has passed resolution approving my offer and authorising the MD to execute the sale deed. The board resolution with Common Seal has been given to me. Is it sufficient the MD signs the sale deed just as it is done in all sale deeds or the rubber stamp of the Private Company be stamped on the sale deed ? The sale deed mentions the Board resolution empowering him to execute the document. What other precautions I should take, as I am buying for the first time a property from a Pvt limited Company?
CHEENI
(Querist) 22 March 2008
Await your guidance
Manish Singh
(Expert) 24 March 2008
Firstly, a property which belongs to a company can't be in the name of any person.It has to be in the name of the company itself.
Now, Since you have got the resolution's copy with seal, it is understood that the director has been duly authorised to sign and execute all the documents related to sale of that property.
Mention the date also in your sale deed when the resolution was passed.
Rubber stamp will not affect the legality of the sale deed when duly stamped and executed but it would be better to have the sale deed stamped wherever the signature is.
Make a proper due diligence of the property before getting into the deal.
Y V Vishweshwar Rao
(Expert) 09 May 2009
The Company should also file the copy of Resolution and copy of Sale Deed before the Registrar of Companies to relfect the sale of the Proerty to you by the Company.
A V Vishal
(Expert) 09 May 2009
Dear Mr Rao,
There is no such provision under the companies act to file the sale deed of the puported sale to the ROC
Sachin Bhatia
(Expert) 04 October 2009
A property which belongs to a company can't be in the name of any person.It has to be in the name of the company itself.
