Section Summary

The Transfer of Property

Act, 1882
The Transfer of Property Act, 1882 –Section Summary

SECTION SUMMARY

CHAPTER I PRELIMINARY (Section 1 -4)

CHAPTER II OF TRANSFERS OF PROPERTY BY ACT OF PARTIES (Section 5-53A)
CHAPTER III OF SALES OF IMMOVEABLE PROPERTY (Section 54-57)
CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES
(Section 58-104)
CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY (Section 105-117)
CHAPTER VI OF EXCHANGES (Section 122-129)
CHAPTER VII OF GIFTS (Section 36B-45)
CHAPTER VIII OF TRANSFERS OF ACTIONABLE CLAIMS (Section 130-137)

Section No. Section Heading Provisions

Section 1 Short title, extent,  Applicable across India on property transfers
commencement  Enforcement date 1st July, 11882
and application
Section 3 Immoveable  Does not include standing timber, growing crops or grass;
property "instrument", means a non-testamentary instrument
Section 3 Attached to the  Rooted in the earth, as in the case of trees and shrubs;
earth  Imbedded in the earth, as in the case of walls or buildings;
or
 Attached to what is so imbedded for the permanent
beneficial enjoyment of that to which it is attached
Section 3 Actionable claim  A claim to:
--any debt, other than a debt secured by mortgage of
immoveable property or
--by hypothecation or pledge of moveable property, or
--to any beneficial interest in moveable property not in the
possession, either actual or constructive, of the claimant,
which the Civil Courts recognize as affording grounds for
relief, whether such debt or beneficial interest be existent,
accuring, conditional or contingent
Section 5 Transfer of  An act by which a living person conveys property:
property- Definition --in present or in future,
--to one or more other living persons, or
--to himself & one or more other living persons
Section 6 What may be  Property of any kind except:
transferred -- chance of an heir-apparent succeeding to an estate, the
chance of a relation obtaining a legacy on the death of a
kinsman, or any other mere possibility of a like nature;
-- mere right of re-entry for breach of a condition
subsequent;
--easement;
-- interest in property restricted in its enjoyment to the
owner personally;

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The Transfer of Property Act, 1882 –Section Summary

Section No. Section Heading Provisions

-- right to future maintenance, secured or determined;
-- mere right to sue;
-- public office, nor can the salary of a public officer,
whether before or after it has become payable;
-- stipends allowed to military and civil pensioners of the
Government and political pensions
Section 7 Persons competent  Person competent to contract &
to transfer  Entitled to transferable property, or
 Authorised to dispose of transferable property not his
own,
competent to transfer such property either:
--wholly or in part &
--absolutely or conditionally
Section 10 Condition  Property transferred subject to a condition or limitation
restraining absolutely restraining the transferee/any person claiming
alienation under him from parting with or disposing of his interest in
the property, the condition or limitation is void
 Except:
--lease where the condition is for the benefit of the lessor
or those claiming under him if property be transferred to
or for the benefit of a woman (not being a Hindu,
Muhammadan or Buddhist), so as to not have the power
during her marriage to transfer or charge the same or her
beneficial interest therein
Section 13 Transfer for benefit  Transfer of property creating interest for the benefit of a
of unborn person person not in existence at the date of the transfer:
--by a prior interest created by the same transfer, interest
so created shall not take effect, unless
--it extends to the whole of the remaining interest of the
transferor in the property
Section 14 Rule against,  Transfer of property cannot:
perpetuity --operate to create an interest which is to take effect after
the lifetime of one or more persons living at the date of
such transfer, and
--the minority of some person who shall be in existence at
the expiration of that period, and
--to whom, if he attains full age, the interest created is to
belong
Section 19 Vested Interest  On a transfer of property, if an interest is created in favour
of:
--a person without specifying the time when it is to take
effect, or
--in terms specifying that it is to take effect forthwith or
--on the happening of an event which must happen,
such interest is vested interest
Section 21 Contingent interest  On a transfer of property, if an interest is created in favour
of:
--a person to take effect only on the happening of a
specified uncertain event, or

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The Transfer of Property Act, 1882 –Section Summary

Section No. Section Heading Provisions

--if a specified uncertain event shall not happen,
such person thereby acquires a contingent interest in the
property
Section 41 Transfer by  If with the consent, express or implied, of the persons
ostensible owner interested in immoveable property,
--a person is the ostensible owner of such property and
--transfers the same for consideration,
--the transfer not be voidable on the ground that the
transferor was not authorized to make it
# if transferee, after taking reasonable care to ascertain
that the transferor had power to make the transfer, has
acted in good faith
Section Part performance  Person contracting to transfer for consideration any
53A immovable property:
--by writing signed by him or on his behalf
--from which the terms necessary to constitute the
transfer can be ascertained with reasonable certainty, and
--the transferee has, in part performance of the contract,
taken possession of the property or any part, or
--the transferee, being already in possession, continues in
possession in part performance of the contract and
--has done some act in furtherance of the contract, and
--the transferee has performed or is willing to perform his
part of the contract, then,
# the transferor or any person claiming under him shall
be debarred from enforcing against the transferee and
persons claiming under him any right in respect of the
property of which the transferee has taken or continued in
possession, other than a right expressly provided by the
terms of the contract
Section 54 Sale defined  Sale is made:
-- tangible immoveable property of the value of one
hundred rupees and upwards, or in the case of a
reversion or other intangible thing: by a registered
instrument
-- tangible immoveable 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
-- delivery of tangible immoveable property takes place
when the seller places the buyer, or such person as he
directs, in possession of the property
-- contract for the sale of immoveable property is a
contract that a sale of such property shall take place on
terms settled between the parties: it does not, of itself,
create any interest in or charge on such property
Section 58 Mortgage,  Mortgage:
mortgagor, --transfer of an interest in specific immoveable property
mortgagee, for the purpose of securing the payment of money
mortgage-money advanced or

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Section No. Section Heading Provisions

and mortgage- --to be advanced by way of loan, an existing or future
deed defined debt, or
--the performance of an engagement which may give rise
to a pecuniary liability
 Transferor: mortgagor
 Transferee: mortgagee
 Principal money and interest of which payment is secured
for the time being: mortgage -money
 Instrument (if any) by which the transfer is effected:
mortgage -deed
 Kinds of Mortgage:
--Simple mortgage: when mortgagor fails to repay the
loan, mortgagee has the right to sell the property and
recover the amount from its sale
--Mortgage by conditional sale: mortgagor makes an
ostensible sale of mortgaged property to the mortgagee
subject to the condition that if the mortgage money is not
duly paid on or before the date agreed, the sale shall
become absolute
-- Usufructuary mortgage: mortgagor delivers possession
of the mortgaged property to the mortgagee authorizing
the mortgagee to retain such possession until the
mortgaged money is paid;
# mortgagor authorises mortgagee to collect rents and
profits arising from the property in lieu of the interest (or in
lieu of the interest on mortgage money)
-- English Mortgage: mortgagor binds himself to repay on a
certain date & transfers ownership of the property
-- Anomalous mortgage: composite mortgage consisting of
two or more types of mortgages
Section 60 Right of mortgagor  At any time after the principal money has become due,
to redeem the mortgagor has a right, on payment or tender, at a
proper time and place, of the mortgage-money, to require
the mortgagee:
-- to deliver to the mortgagor the mortgage-deed and all
documents relating to the mortgaged property which are
in the possession or power of the mortgagee,
--where the mortgagee is in possession of the mortgaged
property, to deliver possession to the mortgagor, and
--at the cost of the mortgagor either to re-transfer the
mortgaged property to him or to such third person as he
may direct, or to execute and (where the mortgage has
been effected by a registered instrument) to have
registered an acknowledgement in writing that any right in
derogation of his interest transferred to the mortgagee
has been extinguished
Section 67 Right to foreclosure  Mortgagee has, at any time:
or sale --after the mortgage-money has become due to him, and
--before a decree has been made for the redemption of

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Section No. Section Heading Provisions

the mortgaged property, or
--the mortgage-money has been paid or deposited has
a right to obtain from the Court:
# a decree that the mortgagor shall be absolutely
debarred of his right to redeem the property, or
# a decree that the property be sold
 A suit to obtain a decree] that a mortgagor shall be
absolutely debarred of his right to redeem the mortgaged
property is called a suit for foreclosure
Section 91 Persons who may  Mortgagor
sue for redemption  Any of the following persons may redeem, or institute a
suit for redemption of, the mortgaged property:
--any person (other than the mortgagee of the interest
sought to be redeemed) who has any interest in, or
charge upon, the property mortgaged or in or upon the
right to redeem the same;
--any surety for the payment of the mortgage-debt or any
part thereof; or
--any creditor of the mortgagor who has in a suit for the
administration of his estate obtained a decree for sale of
the mortgaged property
Section 92 Subrogation  Any individual other than mortgagor or co-mortgagor, who
has interest in the mortgaged property and who redeems
the mortgage, is entitled to be substituted in place of
mortgagee
 A person acquiring the same is said to be subrogated to
the rights of the mortgagee whose mortgage he redeems
Section Charges  Where immoveable property of one person is by:
100 --act of parties or
--operation of law
made security for the payment of money to another, and
transaction does not amount to a mortgage, the latter
person is said to have a charge on the property; and
--all the provisions which apply to a simple mortgage
shall, apply to such charge
 This section does not apply to:
--the charge of a trustee on the trust property for
expenses properly incurred in the execution of his trust,
and as provided by any law for the time being in force,
--no charge shall be enforced against any property in the
hands of a person to whom such property has been
transferred for consideration and without notice of the
charge
Section Lease defined  Transfer of a right to enjoy an immovable property:
105 --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,

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Section No. Section Heading Provisions

--to be rendered periodically or on specified occasions
--to the transferor by the transferee,
who accepts the transfer on such terms
 Transferor: lessor
 Transferee: lessee
 Price: premium
 Money, share, service or other thing to be so rendered:
rent
Section Duration of certain  Lease of immovable property for:
106 leases in absence --agricultural or manufacturing purposes be deemed to be
of written contract a lease from year to year, terminable, on the part of either
or local usage lessor or lessee, by six months’ notice; and
--a lease of immovable property for any other purpose be
deemed to be a lease from month to month, terminable,
on the part of either lessor or lessee, by fifteen days’
notice
# notice must be:
* in writing,
* signed by or on behalf of the person giving it, and
* either be sent by post to the party who is intended to
be bound by it or be tendered or delivered personally
to such party, or to one of his family or servants at
his residence, or (if such tender or delivery is not
practicable) affixed to a conspicuous part of the
property
Section Lease how made  Lease of immoveable property:
107 --from year to year, or
--for any term exceeding one year, or
--reserving a yearly rent,
be made only by a registered instrument
--all other leases of immoveable property may be made
either by:
# a registered instrument or
# by oral agreement accompanied by delivery of
possession
 State Government may direct that lease of immoveable
property:
--other than leases from year to year, or
--for any term exceeding one year, or
--reserving a yearly rent, or
--any class of such leases,
may be made by unregistered instrument or by oral
agreement without delivery of possession
Section Exclusion of day on  If time limited by a lease of immoveable property is
110 which term expressed as commencing from a particular day, in
commences computing that time such day shall be excluded
 If no day of commencement is named, the time so limited
begins from the making of the lease
 Duration of lease for a year:

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Section No. Section Heading Provisions

--if the time so limited is a year or a number of years,
the lease shall last during the whole anniversary of
the day from which such time commences
 Option to determine lease:
--if the time so limited is expressed to be terminable
before its expiration, and the lease omits to mention
at whose option it is so terminable, the lessee, and
not the lessor, shall have such option
Section Determination of  A lease of immoveable property determines:
111 lease --by efflux of the time;
--on happening of some event;
--merger: lessor and lessee become one;
--surrender;
--by implied surrender;
--by forfeiture:
# in case the lessee breaks an express condition which
provides that, on breach thereof, the lessor may re-enter
or
# in case the lessee renounces his character
as such by setting up a title in a third person or by
claiming title in himself; or
--the lessee is adjudicated an insolvent and the lease
provides that the lessor may re-enter on the happening of
such event;
and in any of these cases the lessor or his transferee
gives notice in writing to the lessee of his intention to
determine the lease
--on the expiration of a notice to determine the lease, or to
quit, or of intention to quit, the property leased, duly given
by one party to the other
Section Exchange defined  When two persons mutually transfer the ownership of one
118 thing for the ownership of another neither thing or both
things being money only
Section Right of party  If any party to an exchange or any person claiming
119 deprived of thing through or under such party is by reason of any defect in
received in the title of the other party deprived of the thing or any part
exchange of the thing received by him in exchange, then such other
party is:
--liable to him or any person claiming through or under
him for loss caused, or
--at the option of the person so deprived, for the return of
the thing transferred, if still in the possession of such
other party or his legal representative or a transferee from
him without consideration
Section Gift defined  Transfer of certain:
122 --existing moveable or immoveable property
--made voluntarily and
--without consideration,
--by one person: donor,

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Section No. Section Heading Provisions

--to another: donee, and
--accepted by or on behalf of the done
 Acceptance when to be made:
--must be made during the lifetime of the donor and while
he is till capable of giving,
 If the donee dies before acceptance, the gift is void
Section Transfer how  Transfer must be effected by:
123 effected --a registered instrument
--signed by or on behalf of the donor, and
--attested by at least two witnesses
 Transfer of gift of moveable property may be effected
either
--by a registered instrument signed as aforesaid or
--by delivery
Section Gift of existing and  Gift comprising both existing and future property is void
124 future property as to the latter
Section Gift to several, of  A gift of a thing to two or more donees, of whom one does
125 whom one does not accept it, is void as to the interest which he would
not accept have
taken had he accepted
Section When gift may be  Donor and donee may agree mutually that:
126 suspended or --on the happening of any specified event
revoked --which does not depend on the will of the donor
it shall be suspended or revoked;
 A gift which the parties agree be revocable wholly or in
part at the mere will of the donor is void wholly or in part,
as the case may be
 A gift also be revoked in any of the cases (want or failure
of consideration) in which, if it were a contract, it might be
rescinded
 This section shall not be deemed to affect the rights of
transferees for consideration without notice
Section Onerous gifts  A gift which is in the form of a single transfer to the same
127 person of several things of which one is, and the others
are not, burdened by an obligation, the done can take
nothing by the gift unless he accepts it fully
 Where a gift is in the form of two or more separate and
independent transfers to the same person of several
things, the donee is at liberty to accept one of them and
refuse the others, although the former may be beneficial
and the latter onerous
 Onerous gift to disqualified person:
--donee not competent to contract and accepting property
burdened by any obligation is not bound by his
acceptance
--if, after becoming competent to contract and being
aware of the obligation, he retains the property given, he
becomes so bound
Section Universal Donee  A gift consisting of the donor’s whole property, the donee

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Section No. Section Heading Provisions

128 is personally liable for all the debts due by and liabilities of
the donor at the time of the gift to the extent of the
property comprised therein
Section Transfer of  An actionable claim can be transferred:
130 actionable claim --with or without consideration
--by way of an instrument in writing duly signed by the
transferor or his agent duly authorised in this respect
 Oral transfer of actionable claims is not permitted; its
registration is not necessary, and no separate instrument
of transfer is to be effected
Section Liability of  Transferee gets no better title than the transferor
132 Transferee of  Transferee takes all the equities and also the liabilities of
Actionable Claim the transferor to which the latter was subject at the time of
such assignment

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