In terms of section 2(1) of the Alienation of Land Act No 68 of 1981, no alienation of land shall be of any force or effect unless it is contained in a deed of alienation signed by the parties thereto, or by their agents acting on their written authority e.g. by a Power of Attorney, either General or Special.
Where the seller/purchaser is a company, trust, close corporation or other legal entity, the seller/purchaser must establish that the person entering into the sale agreement is authorised to do so. If they do not, and there was no warranty clause in the deed of sale, the other directors/members/trustees of that entity could challenge the validity of the agreement.
With trusts selling/buying property, all the trustees are required to sign either the deed of sale or a resolution authorising the sale. It is also of vital importance for the conveyancer to inspect the Letters of Authority and Trust Deed to ensure that the transaction is in order and that the person signing on behalf of the trust has been duly authorised thereto in writing.
For assistance, contact your conveyancer at STBB