Writing a Board Resolution for the Purchase of Property

Aug 28

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. Drafting notes can be integrated within the resolution to provide explanations and tips, assisting users in understanding the complexities and ensuring proper execution of related agreements.

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.

A sample resolution like below can provide a structured template, including detailed sections regarding the approval process, necessary authorizations, and financial arrangements involved in the acquisition, thereby ensuring compliance and clarity in documentation. Feel welcome to copy from ours below and edit for your own use.

Sample Resolution for the Purchase of Property

[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: __)

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]

Understanding Board Resolutions

A board resolution is a formal document that outlines the decisions and actions of a corporation’s board of directors. It is a crucial tool in commercial real estate purchases, as it authorizes the corporation to take specific actions, such as purchasing commercial real property. This document ensures that the board’s decisions are clearly recorded and legally binding, providing a structured approach to significant business transactions.

Definition of a Board Resolution

A board resolution is a written document that records the decisions and actions of a corporation’s board of directors. It is typically used to formalize business decisions, such as the purchase of commercial real property. The resolution is usually drafted by the corporation’s legal counsel and is adopted by the board of directors through a vote. This formal process ensures that all board members are in agreement and that the decision is made in the best interest of the corporation.

Importance of a Board Resolution in Commercial Real Estate Purchase

A board resolution is essential in commercial real estate purchases as it provides the necessary authority for the corporation to purchase commercial real property. The resolution ensures that the corporation is acting within its legal powers and that the purchase is in the best interest of the corporation. It also provides a clear record of the corporation’s decisions and actions, which can be useful in case of disputes or legal challenges. By having a formal resolution, the corporation can demonstrate due diligence and transparency in its decision-making process.

Authorizing the Purchase of Property

The resolution should clearly state that the corporation is authorized to purchase commercial real property. This includes specifying the property located, the purchase price, and the terms of the sale. The resolution should also authorize the president and/or chief financial officer to execute documents related to the property purchase. By detailing these elements, the resolution provides a clear framework for the transaction, ensuring that all necessary steps are taken and that the purchase is conducted in a legally compliant manner.

Nate Nordstrom