Board Resolution for Purchase of Property

The following board resolution format as per

Companies Act, 2013 can be used for the purchase of property. Whenever a property is purchased in the name of a company, a Board Resolution must be executed by the Company authorising an Officer of the company to execute the sale deed. The board resolution for the purchase of property provided below can be used for the purchase of land or premises by a company.

Board Resolution Format for Purchase of Land

RESOLVED that approval of the Board be and is hereby accorded to the company purchasing parcels of land admeasuring <Area>, <Units> by <Area>, <Units>, situated in <Address of Property> in the State of <State Name>, as specifically indicated in the attached site plan in terms of agreement proposed to be entered into by the company as per draft laid on the table initialed by the chairman for the purpose of identification, with <Seller of Land>, the proposed vendor of the said plot of land for consideration of Rs. <Amount of Consideration> payable in one or more instalments; FURTHER RESOLVED that. <Person Authorised by Board>, a <Director / Officer of the Company>, be and is hereby authorised to communicate on behalf of the company with the vendor and to arrange registration and mutation of the title to such land in favour of the Company and to procure the necessary certificate of mutation and all the necessary papers and documents in connection therewith be handed over to him.

Board Resolution Format for Purchase of Land & Building

RESOLVED that <Person Authorised by Board>, <Designation> of the Company be and is hereby authorised to negotiate and finalise acquisition of suitable premises in <City> and to arrange for setting up of a <office / factory / guest house / others> on such terms and conditions as he may consider most appropriate and in the best inters of the company. RESOLVED FURTHER that <Person Authorised by Board>, <Designation> of the Company be and is hereby authorised to execute on behalf of the company such documents and papers as may be required for acquisition of the land/premises and to appear before such authorises as may be necessary for giving effect to the said deal and to attend to all matters incidental thereto.

Back to Learn

Frequently Asked Questions

Common questions about Board Resolution for Property Purchase.

A Board Resolution for Purchase of Property is a formal document approved by the board of directors of a company, authorizing the purchase of a specific property or land. It outlines the details of the property being acquired, such as the location, area, and consideration amount, and appoints a person to execute the necessary documentation on behalf of the company.

A Board Resolution for Purchase of Property is required to provide legal authorization for a company to acquire property or land. It serves as official documentation of the board's approval for the transaction, ensuring that the purchase is conducted in compliance with the company's bylaws and relevant laws, such as the Companies Act, 2013.

The Board Resolution for Purchase of Property typically appoints a director or officer of the company to communicate with the seller, arrange for the registration and mutation of the property title, and execute the necessary documents and papers required for the acquisition.

A Board Resolution for Purchase of Property should include specific details about the property being acquired, such as the address, area measurements, state or location, and the consideration amount payable to the seller. It should also clearly identify the authorized person who will execute the transaction on behalf of the company.

Yes, a Board Resolution for Purchase of Property can be used for acquiring either land or land with existing buildings or premises. The resolution should specify whether the acquisition is for land only or includes any existing structures or buildings.

Yes, a Board Resolution for Purchase of Property is required for every instance of a company acquiring property or land. It is a legal requirement and ensures proper authorization and documentation of the transaction.

The Board Resolution for Purchase of Property typically includes the consideration amount payable to the seller for the property acquisition. This amount is negotiated and finalized by the authorized person appointed by the board, based on factors such as market rates, property valuations, and the company's budget.

In some cases, a Board Resolution for Purchase of Property may need to be amended or modified, such as if there are changes in the property details, consideration amount, or authorized person. Any amendments or modifications should be properly documented and approved by the board through a new resolution.

A Board Resolution for Purchase of Property does not have a specific expiration date. However, it is recommended to execute the property purchase within a reasonable timeframe after the resolution is approved, as circumstances or the board's decision may change over time.

While the Board Resolution for Purchase of Property is a crucial document, there may be additional legal requirements and documents needed for property acquisition, such as sale deeds, registration documents, property tax clearances, and compliance with local laws and regulations. The authorized person appointed by the board should ensure that all necessary documentation and legal formalities are completed.