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Ankit   31 May 2024

Sale & purchase of immovable property by private family trust

I am a trustee in a private family trust which is not registered. The trust deed allows for sale and purchase of immovable properties by the trust. I want to understand if it is advisable to acquire properties in trust's name or there are other ways it should be done. My concern is around any complications which might arise during the sale of the property, when the trustees might be different. 



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 2 Replies

T. Kalaiselvan, Advocate (Advocate)     31 May 2024

The property of private trust can be sold by complying with certain conditions of law.

The Delhi High Court has stated that prima facie, no trust property can be held, sold, mortgaged, or exchanged without obtaining prior permission from the court.

 All trusts, public or private, are subject to this order.

A private trust is established for the benefit of the beneficiary, a specific group of people.

The trustees are not compelled to sell the property to any buyer other than those they are willing to if they submit an offer in response to the Charity Commissioner's request for tenders. The charity commissioner's role is restricted to ensuring that the trust's objectives are fully achieved; nevertheless, he lacks the power to compel the trustee to sell to a specific buyer.

Ankit   01 June 2024

Does this order also apply to family trust which are not charitable trusts? 


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