The Transfer of Property Act, 1882 lays down how ownership or interest in property can be transferred legally between living persons in India. It ensures that every transaction — whether it's a sale, gift, lease, mortgage, or exchange — is valid, voluntary, and legally enforceable.
Key Highlights
| Category | Details |
|---|---|
| Applies To | Voluntary transfers between living persons (inter vivos) |
| Main Focus | Immovable property (land, houses, buildings) |
| Who Can Transfer | A person who is an adult, of sound mind, and legally owns or is authorized to transfer |
| Who Can Receive | Any living person, including minors (but minors cannot transfer property themselves) |
| Mode of Transfer | Must be in writing, duly stamped, and registered (as required under Registration Act) |
Common Types of Property Transfers
| Type | What It Means | Consideration (Payment) | Registration Required? | Example |
|---|---|---|---|---|
| Sale | Full ownership transferred permanently | Yes | Yes | Selling a plot for ₹10 lakh |
| Gift | Ownership transferred voluntarily without money | No | Yes | Gifting a flat to a child |
| Lease | Right to use property for fixed time | Rent | Yes (if more than 12 months) | Renting a shop for 3 years |
| Mortgage | Property used as loan security | No sale money | Yes | Using your house to get a bank loan |
| Exchange | Properties swapped between owners | Both give & take | Yes | Two people swap their lands |
State-Wise Stamp Duty Snapshot (2025)
(Approximate – Refer to respective state registration portal for latest rates.)
| State | Sale Deed | Gift Deed | Lease (12+ months) | Mortgage |
|---|---|---|---|---|
| Delhi | 4% (women) / 6% (men) | ₹100–₹500 + 1% duty | 2% | 2% |
| Maharashtra |
5% + 1% (male) (Mumbai) 4% base + 1% metro cess (female |
₹200 + 3% | 1% | 2% |
| Uttar Pradesh | 7% for male and 6% for female | 2% | 2% | 2% |
| Tamil Nadu | 7% + 4% | 1% | 1% | 1% |
| Karnataka | 5%, 3%, 2% | 2% | 1% | 0.5–1% |
Tip: Check your state's Inspector General of Registration or Revenue Department website (ending with .gov.in or .nic.in) for updated rates.
Real-Life Insights
- Verbal transfers don't work for land or buildings.
- Stamp duty and registration are mandatory — without them, your ownership isn't legally complete.
- Power of Attorney sales are risky — valid only if registered and specific, not for bypassing sale deeds.
- Future property (something you may acquire later) can't be transferred today.
- Possession without registration is protected only under the Doctrine of Part Performance, and even that's limited.
Frequently Asked Questions (FAQs)
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1. What does "transfer of property" mean?
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It means legally giving ownership, possession, or rights in a property to another living person.
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2. Can a minor transfer property?
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No, but property can be transferred to a minor under guardianship.
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3. Is registration compulsory for every transfer?
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Yes, for all immovable property except leases under 12 months.
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4. Can a property be gifted without money?
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Yes. But it must be in writing, signed, attested, and registered.
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5. What if I transfer a property I don't legally own?
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The transfer is void — only lawful owners can transfer property.
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6. Is oral transfer valid?
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Only for movable assets. For immovable property, registration is essential.
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7. What is a conditional transfer?
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A transfer is valid only if certain conditions are fulfilled — e.g., "I transfer this flat if you marry before 30."
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8. Can future property be transferred?
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No. You can only transfer existing property.
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9. Can someone transfer property to himself and another person jointly?
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Yes, that's valid.
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10. What is the "Doctrine of Part Performance"?
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If you paid money and took possession but registration is pending, courts can protect your right from being unfairly denied.
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11. What if my property buyer doesn't register the deed?
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Ownership legally remains with you until registration.
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12. Can a lease be made for 99 years?
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Yes, but it's legally treated like long-term possession and must be registered.
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13. Can a gift be cancelled later?
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No — except if the gift deed itself allows revocation under specific conditions.
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14. Is stamp duty the same in every state?
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No. Each state government sets its own rates.
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15. Is notarization enough?
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No. Notarisation doesn't equal registration — both serve different purposes.
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16. Can a registered transfer be challenged?
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Yes, only on grounds of fraud, misrepresentation, or coercion.
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17. Can I transfer ancestral property?
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Only your share can be transferred. The rest belongs to other heirs.
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18. Can an NRI transfer property in India?
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Yes, through registered documents and following FEMA rules.
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19. Is Power of Attorney sale valid?
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Yes, but only if it's registered and specific and not used to avoid paying stamp duty.
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20. Where can I verify my property registration?
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On your state's Registration Department website (e.g., igrmaharashtra.gov.in, igrdelhi.gov.in, tnreginet.gov.in).
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