Writing a Board Resolution for the Purchase of Property
A board resolution for the purchase of property is a crucial formal document that serves several important purposes in the governance and operational procedures of an organization. It is essential for ensuring legal compliance, maintaining transparency and accountability, authorizing specific actions, overseeing financial considerations, managing risks, and preserving a clear record of board decisions.
The following is an example of a board resolution that authorizes the purchase of property, designates individuals to execute necessary documents, and includes provisions for financing and incidental actions. Adjust the template as needed to fit your organization's specific requirements and legal context.
Sample Board Resolution for the Purchase of Property
Board Resolution
[Organization Name]
Date: [Insert Date]
Resolution No.: [Insert Resolution Number]
Title: Resolution Authorizing the Purchase of Property Located at [Insert Property Address]
WHEREAS, [Organization Name], a [State] [Nonprofit Corporation/Corporation/etc.] (the "Organization"), has determined that the acquisition of certain real property located at [Insert Property Address] (the "Property") is in the best interest of the Organization; and
WHEREAS, the Board of Directors has reviewed the terms and conditions of the proposed purchase and finds them acceptable and beneficial to the Organization; and
WHEREAS, the Organization has secured or will secure the necessary financing for the purchase of the Property;
NOW, THEREFORE, BE IT RESOLVED THAT:
Approval of Purchase: The Board of Directors hereby approves the purchase of the Property located at [Insert Property Address] on the terms and conditions set forth in the [Purchase Agreement/Contract], a copy of which is attached hereto as Exhibit A.
Authority to Execute Documents: [Name and Title of Authorized Person(s)] are hereby authorized and directed to execute and deliver, on behalf of the Organization, the [Purchase Agreement/Contract] and any and all other documents necessary or appropriate to effectuate the purchase of the Property, including but not limited to deeds, closing statements, affidavits, and other customary closing documents.
Financing: [Name and Title of Authorized Person(s)] are further authorized to arrange for and execute any documents necessary to secure financing for the purchase of the Property, including but not limited to loan agreements, promissory notes, mortgages, and other security instruments, on terms they deem reasonable and appropriate.
Incidental Actions: The Board of Directors authorizes [Name and Title of Authorized Person(s)] to take all other actions and execute any additional documents necessary to complete the purchase and secure financing, including but not limited to, engaging the services of attorneys, title companies, and other professionals as may be required.
Ratification of Prior Acts: All actions taken by the officers and directors of the Organization prior to the adoption of this resolution that are within the authority conferred hereby are hereby ratified, confirmed, and approved.
Effective Date: This resolution shall be effective immediately upon its adoption.
Adopted this [Insert Day] day of [Insert Month], [Insert Year], by the Board of Directors of [Organization Name].
BOARD OF DIRECTORS:
[Name], [Title] (Signature: ____________________________)
[Name], [Title] (Signature: ____________________________)
[Name], [Title] (Signature: ____________________________)
[Name], [Title] (Signature: ____________________________)
CERTIFICATION
I, [Name], the [Secretary/Title] of [Organization Name], hereby certify that the foregoing is a true and correct copy of a resolution duly adopted by the Board of Directors of said Organization on [Insert Date], and that said resolution has not been amended or repealed.
[Name], [Secretary/Title] (Signature: ____________________________)
Attachments:
Exhibit A: Copy of the [Purchase Agreement/Contract]
