“TRANSFER OF PROPERTY ACT, 1882”.
This above act came into force on 01.07.1882. The above act applies for both immovable and movable property. It also applies to tangible and intangible properties.
- The above act outlines the legal procedure for transferring property from one person to another.
- Transferring of property needs to take place between living people, needed to happen in the present or future.
WHAT IS IMMOVABLE PROPERTY
- Immovable property includes land, benefits arising out of the land and things attached to the land.
- Immovable property does not include standing timber, growing crops or grass.
GENERAL PRINCIPLES OF TRANSFER OF PROPERTY
- A living person can convey property in the present or in the future to one or more living persons.
- He can convey the property to himself or herself or one or more living persons
Example : A to B, C and D
A to A (Trust)
A to himself and to any number of living persons.
- Lease is an exception for the above seller.
- A deed dedicating the property to a deity.
WHEN IS TRANSFER OF PERSON ACT NOT APPLICABLE:
- Court sale
- Partition or family settlement
- Surrender or Relinquishment
WHO CAN TRANSFER PROPERTY
- Any person who is competent to contract.
- Authorized to dispose of the property. (section 7)
HOW TO TRANSFER
- If the value of the property is above Rs.100, then it can be done, only by registered instrument.
- If the value is less than Rs. 100 and property is tangible (which can be felt), by delivery only.
- If the property is intangible ( copy writes, ————) it can be done only by instrument.
- At least 2 person must at least as witness.
- Each of the witness must see the executes sign.
CONDITIONS RESTRAINING ALIENATION :
- The powers of the Transfer cannot with a candidate that B cannot transfer this house to anyone except C. The candidate is void, because C may be chose as a person who may never purchase the property.
TRANSFER TO UNBORN PERSON :
- Transfer cannot be made directly in favour of unborn person. (section 13)
- Till the unborn person comes to existence there should be a transfer in favour of living person.
- The transfer should not postpone the vesting of the property to the unknown person beyond the attainment of the majority (18 years).
MAXIMUM LIMIT FIXED FOR POSTPONING THE VESTING OF PROPERTY
- Life in existence at the date of transfer
- Minority of the ultimate beneficiary.
- Period of Gestation provided gestation actually exists.
(i.e., Ultimate beneficiary is actually in mother womb at the death of last person (section 14).
VESTED INTEREST AND CONTINGENT INTEREST IN THE ACT :
VESTED INTEREST :
- Vested Interest is where the transferor of the property specifies that the transfer shall take effect upon the happening of an event which is bound to occur in future.
Illustration : A makes gift of his house to B. He simply executes the gift deed but does not specify any date on which the ownership is to be transferred. The interest B is vested interest.
CONTINGENT INTEREST :
- Contingency means uncertain future event.
- The transfer provides that transfer shall take effect upon the happening of an event that may or may not happen. The nature of the transfer is contingent.
Illustration : A makes a gift of his property to B when he attains the age of 18 years or marries under that age, with the condition neither attains that age nor marries with the consent of C then property goes to D.
Here B and D both take contingent interest in the property.
I have tried to deal with the subject only at a superficial level. It tends to become a law subject as we dwell further. There are things like conditional transfer, types of conditional transfer and collateral conditions etc.