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A transfer means an exchange of a thing from one person to another. The definition of ‘Property’ is a virtual entity or anything physical which is owned either by one person or a group of persons. One can transfer a property to someone else by transferring its ownership, interest, rights, possession, or all of it.
To make this process smooth, the Government introduced the Transfer of Property Act in 1882. If you wish to know more about the same, keep reading this piece.
Section 5 of Transfer of Property Act, 1882 defines it as a deed executed by a live person transferring property to one or more other people, himself, or other living people in the present or future. A business, a large group of people or an association are taken into consideration as living beings.
Property types in India are distinguished as either moveable or immovable under the legal system. This TP Act 1882, which came into effect on July 1, 1882, covers features of property transfer between living things.
The Transfer of Property Act is one of the earliest pieces of legislation in Indian law. It is an expansion of the law of contracts and coexists with succession laws. Knowing the main components of this Act is crucial for anyone who intends to transfer their immovable property.
The scope of the Transfer of Property Act is:
Parties: According to this Act, two or more parties to the legal process might accomplish the transfer of property ownership
Property Type: The Transfer of Property Act principally applies to the inter-vivos (between live beings) transfer of immovable property. This Act is also applicable to transfers of property made by both companies and by private individuals. In addition, this Act applies only to transfers permitted by law and not to party acts.
Here are the types of property that are transferable under transfer of property law.
In Section 7 of the Transfer of Property Act, one can find the guidelines for legally qualified people to transfer their property.
According to the section, "Every person competent to contract and entitled to the transferable property, or authorised to dispose of transferable property not his own, is competent to transfer such property, either wholly or in part and either unconditionally or subject to conditions, in the circumstances, to the extent, and in the manner, allowed and prescribed by any law for the time being in force."
A person must be at least 18 years old and of sound mind in order to be qualified to engage in a contract under the Indian Contract Act of 1872.
An oral transfer means a property transfer which can be done without writing in every case and is not necessary by law.
A person who intends to leave their property to his/her next generations must do so while keeping in mind the guidelines of this Act. This becomes crucial to prevent legal issues down the road.
The Transfer of Property Act's provisions set in Sections 13 and 14 forbid the direct transfer of property in favour of an unborn child. It is possible that the party planning the transfer must first transfer it in favour of someone alive on the transfer date.
The property must be registered in this person's name up until the expectant kid is born. In short, a prior interest must exist in the property before the unborn child's interest can exist.
Let's understand this better with the help of an example. Let's assume that person A wants to transfer his property to his son and his/her next generation- his unborn grandchild.
Now, in case this expectant child is not born before the death of person A, the property transfer would be invalid. It would only be valid if the child is born before person A dies. Moreover, the interest of the property should vest in his son till the birth of the child.
Section 52 of the Transfer of Property Act of 1882, which talks about "lis pendens" or property that is a subject of a legal proceeding, is one of the 137 provisions that it covers.
It states that any movable property which a title dispute involves cannot be sold or transferred while the legal action is ongoing or until a competent court issues a decision.
However, if the property has already been transferred, the transaction is still lawful. The buyer has to now abide by the court's decisions.
According to Section 54 of this Act, the definition of a sale is the transfer of property ownership in exchange for a sum that has been promised, paid, partially promised, or partially paid. The section covers the obligations of the seller during the property transfer.
The following is a list of these rules:
The buyer must take care of his or her obligations as part of the process when buying a property. These obligations include:
This is all about the Transfer of Property Act. The Government of India brought this Act to provide information about property transfer in a simple and easy language. As of now, this Act has undergone a number of changes to increase its effectiveness.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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