What is transfer of property?

The word \"transfer of property\" is under Section 5 of the Transfer of Property Act of 1882. It is an important law that governs the transfer of both immovable and moveable property between individuals. The purpose of the act is to provide a solid legal foundation for the ownership transfer and to outline the procedures necessary for the transfer to be accepted by the law. I have shared more information about what is transfer of property below.

What is the Transfer of Property Meaning?

As I said, the transfer of property refers to the legal process by which ownership rights over land, buildings, or any immovable or movable property are passed from one person to another. This is governed by the Transfer of Property Act, 1882. It outlines the rules, methods, and legal requirements for property transfers in India.

According to Section 5, transfer of property means an act by which a living person conveys property to one or more persons, or to himself and another person. This includes individuals, companies, or associations. Some of its types are.

1. Lease: Transfer of property rights for a specific period in exchange for rent, without transferring ownership.

2. Mortgage: Property is used as collateral for a loan, with conditional transfer of rights to the lender.

3. Exchange: Mutual transfer of ownership between two parties, like a barter system.

4. Inheritance and Will: Property passes to legal heirs or nominated persons after the owner’s death, based on a Will or succession laws.

Legal Requirements for Valid Transfer

1. The transferor (seller/donor) must have the legal right to transfer.

2. The transferee (buyer/recipient) must be competent to receive property.

3. The transfer must comply with applicable stamp duty and registration laws.

I hope you found this information helpful.

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What are the Modes of Transfer of Property

Transfer of property as the name suggests is the act of transferring ownership of property from one person, individual or company to another. The Transfer of Property Act 1882 talks about transfer of property between living beings. You must know that here, living beings refers to a company, association, individual or body of individuals. The act defines property as movable and immovable property. 

So far I have given you an idea on what transfer of property is. Let us now understand what types of transfer can take place as per Transfer of Property Act.

There are 6 types of transfer which can take place:

• Sale

• lease/ renting

• Mortgage

• Exchange

• Gift

• Actionable claim

• An immovable property which in future is expected to be inherited cannot be transferred.

• A lessor cannot transfer his or her right to re-enter into a leasehold property 

• If a real estate developers enters into a Joint Development Agreement with a landlord to build a project on the landlord’s land then the former will not have any right to transfer the property ownership

• The easement rights on a property cannot be transferred either.

I hope transfer of property is clear to you now.