To answer your query: can a trust purchase property? I’d like to say yes! A trust can purchase property in India. In accordance with Indian law, specifically under the Indian Trusts Act, 1882, a trust is a legal arrangement where the trustee holds property for the benefit of the beneficiaries. This legal entity is recognised as capable of owning property, which allows it to enter into transactions such as purchasing real estate.
When a trust intends to acquire property, the following key considerations should be addressed:
The trust must have a valid trust deed outlining its objectives, powers, and the extent of authority granted to the trustees. This document is essential for the legitimacy of the trust and its ability to transact.
The trustees must act within the scope of their authority as defined in the trust deed. It is imperative that they execute the purchase in alignment with the interests of the beneficiaries.
The funds utilised for the property purchase must be part of the trust's assets. Any acquisition should comply with the guidelines set forth in the trust deed regarding financial transactions.
The property transaction must be documented through a sale deed, which must be registered under the Registration Act, 1908, to ensure the legality and enforceability of the property rights acquired by the trust.
I hope this helps!
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Can a Trust Purchase Property?
Tasmin77
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2025-04-29T14:54:19+00:00 2025-04-29T14:54:20+00:00Comment
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