The Transfer of Property Act, 1882: If you are looking to buy or sell the property then you need to have an idea about the Transfer of Property Act of 1882 so that you can be careful about executing the sale or purchase.
In this article, we will explain to you briefly what is meant by the Transfer of Property Act.
How many sections are there in the Transfer of Property Act, and a quick overview of a few crucial important sections of the Act, and the Transfer of Property Act bare act.
What Do You Mean By Transfer of Property Act, 1882? : The Transfer of Property Act came into force on July 1, 1882. Before that, we were following English law. So what do you mean by the Transfer of Property Act? Property can be movable and immovable.
The transfer of Property Act, 1882, pertains to mainly the transfer of immovable property between living beings, and companies (whether incorporated or not).
As per Section 5 of the Act “Transfer of Property” is defined as an act by which a living person conveys property in present or in future, to one or more another living person, or to himself, and one or more other living persons, and “to transfer property” is to perform such act.
Types of Transfer Covered by Transfer of Property Act
Sale: A sale is an outright transfer of property involving the consideration of money.
A mortgage is a transfer of a limited interest in the property.
A lease is a transfer of the right to enjoy a property for a certain period of time.
An exchange involves the transfer of property that involves a consideration of something other than money.
A gift is a transfer of property without any consideration of money or any other thing.
Actionable claim means claim to unsecured debt and movable property.
What Does Transfer of Property Act Not Include?
Inheritance, wills, insolvency, forfeiture do not come under the Transfer of Property Act.
How Many Sections Are There in the Transfer of Property Act, 1882?
The transfer of Property Act, 1882 is an extension of the law of contracts. It runs parallel to the interstate and succession laws and consists of 8 chapters with 137 sections detailing the nuances of the Act. You can find below a quick heads-up of a few important sections.
Section 52 of Transfer of Property Act
Section 52 of the Transfer of Property act reads pertains to the transfer of property that is pending in litigation.
It reads as “During the pendency in any court… of any suit or proceedings which is not collusive and 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 or proceeding so as to affect the right of any other party thereto…”
This means that property in litigation should not be purchased or sold, and if the transfer of such property takes place, then the purchaser will have to abide by the court’s decision.
Section 53 of Transfer of Property Act
Section 53 of the Transfer of Property Act pertains to a fraudulent transfer. This section makes fraudulent acts of transfer of property voidable – those that are made with an intent to defraud either the creditors of the transferor or defraud the subsequent transferee.
Section 54 of Transfer of Property Act
Section 54 of the Transfer of Property Act defines the sale of immovable property. ‘Sale’ is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. It involves a seller, a buyer, and money consideration.
That is to say, if the consideration is something other than money, then it is, in effect, ‘exchange’ and not a sale.
Section 55 of Transfer of Property Act
Section 55 of the Transfer of Property Act pertains to the responsibilities of the seller.
The responsibilities range from informing the buyer of any defects in the property, providing the necessary documents for verification, answering all the questions, paying all the encumbrances and rents to hand over the property to the buyer.
Section 58 of Transfer of Property Act
Section 58 of the Transfer of Property Act pertains to defining the concept of mortgage and types of mortgage.
According to Section 58, “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.
” There are six types of mortgage defined under Section 58 – simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds, and anomalous mortgage.
Section 3 of Transfer of Property Act
Section 58 of the Transfer of Property Act pertains to the actionable claim and involves a claim to unsecured debt, and beneficial interest in movable property.
Unsecured debt refers to all monetary obligations of a certain amount, and that is not covered by any security in the form of mortgage, pledge, or hypothecation. The beneficial interest in a movable property refers to a claimant’s right to a movable property that he is not in possession of.
Transfer of Property Act, Bare Act
Now that you have a cursory idea of the Transfer of Property Act, 1882, and you know how many sections are there in the Transfer of Property Act, you can always study it in detail.
You can find the Transfer of PropertyAct, Bare Act document if you want to read it. So, be alert when you are involved in a sale or purchase of any immovable property and refer to the Transfer of Property Act, 1882 to be in the safe.