Occasionally, property may be bought or sold by a business. The business is allowed to do this because, at law, a business is treated as a legal entity like a person. Businesses can own assets and can purchase and sell assets. The core of this persona ficta concept began in the 1200s as a part of Canon and Roman law. The Church and kingdoms of the 1200s created the idea of a legal entity business to address the issue of monasteries. All the monks in the monastery had a vow of poverty that prevented them from owning significant assets, and yet the monastery itself was a significant asset. As a result, the organization was established as a “legal entity” capable of owning property. The idea became significantly ingrained into law and has been affirmed many times in the courts. In Louisville, C. & C. R., Co. v. Letson, 11 L.Ed. 353 (1844), the court stated that corporations were legal entities “capable of being treated as a citizen of [the state], as much as a natural person.”
When property is purchased or sold by an entity, the question is not, “How can this abstract legal thing own land,” but rather, “Who is authorized to sell the land?” Generally, the manager or president of a corporation, or the trustee of the trust, or the personal representative of a probate estate will be invested with the authority and right to sell and/or purchase property on behalf of the legal entity. A president of a company doesn’t “own” the property when they sign the purchase agreement, rather the president of the company is the person who can sign the checks and contracts for the legal entity. Some companies will authorize a wide array of people to sign for the entity, allowing presidents, managers, CFOs, COOs, and so on to all bind the company to purchase and sale decisions. Other companies may only allow the top executive to sign. Other companies still may require a vote of the shareholders or members to ratify a sale. The Bylaws and policy manual of the company will oftentimes explain who is allowed sign; in cases of uncertainty, consult the governing documents of the organization.