Seller authority is not sufficiently evidenced.
Request current register extracts, foundation documents, powers of attorney and resolutions. Without reliable authority, no binding commitment should be made.
Land register
Buying property from a private foundation or company: check authority and land register capability
When the seller is a company or foundation, authority, resolutions, register evidence, escrow review and land register capability must fit.
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11 August 2026 · Mag. Bernhard Brandauer, Rechtsanwalt
If the seller is not an individual but a company or private foundation, authority determines contract security. Buyers must check who signs, which resolutions are needed and whether the documents are fit for the land register.
This topic concerns the seller side, not a buyer purchasing through a company. Escrow, compliance, company register and land register review should be considered together.
This article is a transaction checklist and not general corporate law advice.
Authority check
May the company or foundation sell effectively?
Two questions show whether documents and contract wording fit together.
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Are company register, foundation or authority documents current?
The signing person must be able to prove authority.
All paths at a glance
Overview of all answers.
The transaction can be reviewed in a structured way.
If authority, resolutions and deed match, the trustee can review land register capability, discharge of encumbrances and compliance matters.
A resolution or approval is missing.
If a required resolution is missing, signing should be postponed or a clear condition included. Otherwise delay and completion risk may follow.
When the seller is not an individual
When the seller is not an individual
For a company or private foundation, a random signature is not enough. Buyers need traceable evidence of who may act externally and whether internal requirements are met.
The existing article on buying through a GmbH mainly concerns the buyer side. This article reviews the seller side.
Read registers and resolutions together
Read registers and resolutions together
Company register, foundation documents, corporate resolutions and powers of attorney must fit the concrete sale. General authority does not answer every disposal question.
If a power of attorney is used, see power of attorney for property purchases.
Plan escrow and compliance early
Plan escrow and compliance early
For companies and foundations, the trustee will look closely at identity, beneficial ownership, source of funds and seller instructions. This should be done before price release.
For land register mechanics, see land register application after signing.
Protect the contract where evidence is open
Protect the contract where evidence is open
If resolutions or approvals are still missing, the contract should include a condition, deadline for documents or withdrawal mechanism. The buyer should not assume internal documents will later fit.
Multiple individual sellers are a different issue. See multiple sellers and co owners.
Documents
Which seller evidence matters before signing
The overview shows which points should not remain open before price release.
| Evidence | Meaning | Risk without review |
|---|---|---|
| Register External authority | Wrong signature | |
| Resolution Internal sale approval | Challenge risk | |
| Power of attorney Authority of actor | Deed not reliable | |
| Escrow Identity and payment | Release delayed |
The concrete contract solution depends on the property and available documents.
Careful: With a foundation or company, seller authority should be checked before commitment, not only at land register filing.
Practical point: Match register extracts and resolutions with the actual deed. Abstract documents are often not enough.
Receive current updates: Further practical information on property purchases and contract review is available through Brandauer News.
Frequent questions
Buying from a private foundation or company: frequent questions.
Who signs for a company seller? +
This depends on the current authority in the company register and any powers of attorney. The specific signing authority must be checked before signing.
Does a private foundation need a resolution? +
This may depend on the foundation purpose, governing bodies and internal rules. Buyers should request the required evidence before commitment.
Why does this matter for the land register? +
The deed must come from authorised persons and be suitable for registration. Without evidence, completion may fail or be delayed.
Topics
Private foundationCompany sellerAuthorityCompany registerLand register
Reviewing a contract, arranging escrow, securing handover?
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