A curated selection of the Transfer of Property Act's most-studied sections — sale, mortgage, lease, and gift of immovable property. Not the complete text; verify against India Code before citing.
Provided for study purposes. Cross-check against the official source (India Code / the relevant government gazette) before citing or relying on this text — amendments and corrections may not be reflected here.
"Transfer of property" means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to themselves and one or more other living persons; and "to transfer property" is to perform such act. "Living person" includes a company or association or body of individuals, whether incorporated or not.
Property of any kind may be transferred, except as otherwise provided by this Act or any other law for the time being in force. This general rule is subject to certain exceptions set out in the remainder of this section, such as a mere chance of succeeding to an estate, or a right of re-entry for breach of a condition subsequent, which cannot be transferred to anyone except the owner of the property affected.
Every person competent to contract and entitled to transferable property, or authorised to dispose of transferable property not their own, is competent to transfer that property, either wholly or in part, and either absolutely or conditionally, in the circumstances, to the extent and in the manner allowed and prescribed by any law for the time being in force.
Unless a different intention is expressed or necessarily implied, a transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property, and in the legal incidents thereof, including, where the property is land, the easements annexed thereto, the rents and profits accruing after the transfer, and all things attached to the earth.
Where property is transferred subject to a condition or limitation absolutely restraining the transferee from parting with or disposing of their interest in the property, the condition or limitation is void, except in the case of a lease where the condition is for the benefit of the lessor or those claiming under them.
An interest created on a transfer of property and dependent upon a condition fails if the fulfilment of the condition is impossible, or is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy.
Where, with the consent, express or implied, of the persons interested in immovable property, a person is the ostensible owner of that property and transfers it for consideration, the transfer shall not be voidable on the ground that the transferor was not authorised to make it, provided that the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith.
During the pendency of any suit or proceeding in which any right to immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit so as to affect the rights of any other party under any decree that may be made, except under the authority of the court. This is the rule known as lis pendens.
Where a person contracts in writing to transfer immovable property for consideration, and the transferee has taken possession or continues in possession in part performance of the contract and has performed or is willing to perform their part, then notwithstanding that the contract has not been registered or completed in the manner prescribed, the transferor is debarred from enforcing against the transferee any right in respect of the property other than a right expressly provided by the terms of the contract.
"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. A sale of tangible immovable property of the value of one hundred rupees and upwards, or in the case of intangible things, can be made only by a registered instrument. In the case of tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property.
In the absence of a contract to the contrary, the seller is bound to disclose material defects in the property or in their title, to produce title documents for examination, to answer questions as to title, to execute a proper conveyance on payment of the price, to take reasonable care of the property and documents between contract and delivery, and to pay outgoings up to the date of sale. The buyer is bound to disclose facts materially increasing the value of the seller's interest of which the seller is unaware, to pay the purchase money, to bear loss to the property after ownership passes, and to pay outgoings after that date.
A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. The transferor is called a mortgagor, the transferee a mortgagee, and the instrument (if any) by which the transfer is effected is called a mortgage-deed.
At any time after the principal money has become due, the mortgagor has a right, on payment or tender of the mortgage money at a proper time and place, to require the mortgagee to deliver the mortgage deed and documents to them, to deliver possession of the mortgaged property, and to re-transfer the property at the mortgagor's cost. This right of redemption is extinguished only by the act of the parties or by a decree of a court.
A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.
In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable by six months' notice; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable by fifteen days' notice.
A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.
In the absence of a contract to the contrary, the lessor is bound to disclose material defects in the property, and on the lessee's request to put them in possession and to allow them to hold the property without interruption during the term. The lessee is bound to disclose facts materially increasing the value of the lessor's interest, to pay the rent at the proper time and place, to keep the property in as good condition as when they took it, to allow the lessor to enter and inspect, to give notice of any encroachment or proceeding, to use the property as a person of ordinary prudence would, not to erect permanent structures without consent, and on determination of the lease to put the lessor into possession.
A lease of immovable property determines by efflux of the time limited, on the happening of a specified event, by termination of the lessor's interest, by merger, by express surrender, by implied surrender, by forfeiture, or on the expiration of a notice to determine the lease or to quit.
"Gift" is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during the lifetime of the donor and while they are still capable of giving.
For the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. For the purpose of making a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid, or by delivery.