Hi friend,
As you must know, buying and selling a property is not child’s play and it can turn disastrous if all parties involved do not carefully look over the sale agreement. If the agreement fails to provide the proper protection to the parties, they could suffer huge financial losses, which can be easily avoided. This is especially true when it comes to subrogation. Now, what is subrogation in Transfer of Property Act? Let’s find out:
What is Subrogation in Real EstateBasically, it’s a legal principle under which one party retains the right to pursue the claim of another party. In property transactions, there are several ways that a simple issue can grow into a costly affair in case there’s no proper language that establishes and limits this right.
Let’s understand this using an example:
One easy way to think about subrogation involves insurance providers. If you rent out your property to a tenant, then you should take an insurance policy for covering your own legal liability, and the tenant renting the property should also take an insurance policy to protect themselves. Ideally, when and if injury or damages occur concerning the property, the appropriate insurer deals with the claim in an appropriate timeframe and neither you nor your tenant has any long-lasting conflicts with each other.
Doctrine of Subrogation in Property Law
The doctrine of subrogation under Section 92 had been included in the Transfer of Property Act by the Amendment Act of 1929. Prior to this amendment, only the principles of the equitable doctrine of subrogation were applied in the country. The Calcutta High Court explained the scope and nature of the doctrine of subrogation in this way:
The doctrine of subrogation is a doctrine of equity jurisprudence. It doesn’t depend upon the privity of contract, implied or express, except in so far as equity may be supposed to be imported into the transaction and thus raise a contract by implication. It’s founded on the circumstances and facts of each particular case and on the principles of natural justice.
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I hope now you know what is subrogation in Transfer of Property Act.
What is subrogation in real estate?
Indar
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2022-07-19T18:20:58+00:00 2022-07-19T18:57:29+00:00Comment
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