Property Transfer Laws in India: Your Guide to Sale, Gift, Lease and Mortgage.

The Transfer of Property Act, 1882 is a law that governs the transfer of property between living people in India. It explains how property can be legally sold, gifted, leased, or mortgaged, and under what conditions such transfers are valid.

Key Points:

• Applies only to voluntary transfers between living persons (called inter vivos).
• Deals with both movable and immovable property but mostly focuses on immovable property (like land/buildings).
• Common types of transfers under this Act:
  • Sale—full transfer of ownership for money.
  • Gift—transfer without money.
  • Mortgage—using property as security for a loan.
  • Lease—temporary transfer of property use.
  • Exchange—swapping property.
• The transfer must be:
  • By a person legally allowed to transfer.
  • To someone capable of receiving the property.
  • Done with free consent and proper documentation.

Transfer of Property Act – FAQs

1. What does "transfer of property" mean?
   It means legally giving property (like land, a house, etc.) from one living person to another.
2. Does the Act apply to both movable and immovable property?
   Yes, but it mainly focuses on immovable property (land, buildings).
3. Who can transfer property under this Act?
   Anyone who is competent (adult and sane) and the owner or authorized person.
4. Can minors transfer property?
   No. Minors cannot legally transfer property, but property can be transferred to them.
5. What is an inter vivos transfer?
   It means transfer between living people (not by will).
6. Is registration mandatory for property transfer?
   Yes, for most immovable property transfers like sale, lease (over 12 months), gift, etc.
7. Can property be gifted without money?
   Yes. A gift is a transfer without money, but it must be in writing and registered.
8. What is the difference between a sale and a mortgage?
    
   • Sale: Full ownership is transferred.
   • Mortgage: Property is used as security for a loan, not full transfer.
9. What happens if the transfer is done without legal ownership?
   The transfer is invalid. Only a legal owner can transfer property.
10. Can oral transfer be valid?
    Only for movable property in some cases. For immovable property, written documentation is needed.
11. What is the doctrine of part performance?
    If a buyer has taken possession and paid money, but the sale isn't registered, courts may still protect the buyer's rights.
12. Can future property be transferred?
    Generally no. You can only transfer existing and legally owned property.
13. Can a person transfer property to himself and another person jointly?
    Yes, such a transfer is valid.
14. What is conditional transfer?
    A transfer that is valid only if certain conditions are met.
15. What if two people claim ownership?
    The first registered and lawful transfer usually stands.
16. What is a lease under this act?
    A lease gives someone the right to use property for a fixed time, without owning it.
17. Can someone cancel a registered transfer later?
    Only if there was fraud, coercion, or misrepresentation. Otherwise, registered transfers are binding.
18. Is stamp duty required?
    Yes, depending on the value and location of the property, stamp duty is payable.
19. Does the Act apply to ancestral property?
    It applies when ancestral property is being sold, gifted, or transferred, but inheritance rules are governed by personal laws.
20. Is a Power of Attorney (PoA) transfer valid?
    Yes, if the PoA is registered and the person is legally authorized.