Property Transfer - Sale, Gift, Lease, and Mortgage Explained

Last updated: October 8, 2025 Type: Article

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

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)

1. What does "transfer of property" mean?: It means legally giving ownership, possession, or rights in a property to another living person.
2. Can a minor transfer property?: No, but property can be transferred to a minor under guardianship.
3. Is registration compulsory for every transfer?: Yes, for all immovable property except leases under 12 months.
4. Can a property be gifted without money?: Yes. But it must be in writing, signed, attested, and registered.
5. What if I transfer a property I don't legally own?: The transfer is void — only lawful owners can transfer property.
6. Is oral transfer valid?: Only for movable assets. For immovable property, registration is essential.
7. What is a conditional transfer?: A transfer is valid only if certain conditions are fulfilled — e.g., "I transfer this flat if you marry before 30."
8. Can future property be transferred?: No. You can only transfer existing property.
9. Can someone transfer property to himself and another person jointly?: Yes, that's valid.
10. What is the "Doctrine of Part Performance"?: If you paid money and took possession but registration is pending, courts can protect your right from being unfairly denied.
11. What if my property buyer doesn't register the deed?: Ownership legally remains with you until registration.
12. Can a lease be made for 99 years?: Yes, but it's legally treated like long-term possession and must be registered.
13. Can a gift be cancelled later?: No — except if the gift deed itself allows revocation under specific conditions.
14. Is stamp duty the same in every state?: No. Each state government sets its own rates.
15. Is notarization enough?: No. Notarisation doesn't equal registration — both serve different purposes.
16. Can a registered transfer be challenged?: Yes, only on grounds of fraud, misrepresentation, or coercion.
17. Can I transfer ancestral property?: Only your share can be transferred. The rest belongs to other heirs.
18. Can an NRI transfer property in India?: Yes, through registered documents and following FEMA rules.
19. Is Power of Attorney sale valid?: Yes, but only if it's registered and specific and not used to avoid paying stamp duty.
20. Where can I verify my property registration?: On your state's Registration Department website (e.g., igrmaharashtra.gov.in, igrdelhi.gov.in, tnreginet.gov.in).