A month ago, my neighbour’s relatives, a trustee, told me one of his biggest concerns was can a trustee sell trust property in India. After research, I found that a trustee of a private trust can sell trust property but only under specific conditions. The conditions are established by the Indian Trusts Act, 1882, and the trust deed itself.
Can a Private Trust Sell Its Property in India?
Yes. The primary requirement is that the trust deed must explicitly authorize such a sale. If the deed lacks this power, trustees must obtain consent from all beneficiaries before proceeding.
Any sale must also align with the trust’s purpose, ensuring it benefits the beneficiaries and serves the trust's original intent.
The process typically involves several important steps to ensure fairness and transparency.
First, assessing the property through a licensed valuer to determine its fair market value.
Then, publicly advertise the sale or request bids from prospective buyers to maximize benefit.
Once a suitable offer is secured, execute a proper sale agreement and transfer ownership formally.
Importantly, the proceeds from the sale must be used in a manner consistent with the trust’s objectives and managed prudently for the advantage of its beneficiaries. Thus, while a trustee may wield authority to sell, it is far from unrestricted.
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Can a Trustee Sell Trust Property in India?
pragati
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3 months
2025-08-26T11:36:42+00:00 2025-08-26T11:36:45+00:00Comment
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