TRANSFER OF

PROPERTY
TRANSFER OF PROPERTY ACT, 1882
Transfer of Property

• The Transfer of Property Act, 1882 (hereinafter, the Act) is a

civil legislation of immense importance owing to the vast
number of property related transactions taking place
throughout the country. A uniform legislation was the need of
the hour considering this factor, and this act was drafted to
serve the self-same purpose.
Transfer of Property

• In the Transfer of Property Act, 1882 - transfer is defined as an

act by which a living person conveys property, in present or in
future, to one or more other living persons, or to himself, and
one or more other living persons, and ‘to transfer property’ is to
perform such act.
• The word ‘transfer’ in the Act has also been used in a wide
sense. It may mean either transfer of all the rights and interests
in the property or transfer of one or more of subordinate rights
in the property. Thus, the expression ‘transfer of property’ may,
therefore, imply either transfer of things, transfer of one or
more of the rights in a thing, or transfer of a debt
• From the above discussion, it is clear that, the expression transfer of
property as defined in section 5 is wide enough to cover any transaction
which has the effect of conveying property from one living person to
another. Since conveying of the property involves the creation of new title
or interests in favour of the transferee. That is to say, if new title or
interest has not been created in favour of the transferee, the property is
not conveyed, hence no transfer of property. 
DEFINITION

• Transfer of Property means an act by which a living person can convey property, in

present or in future, to one or more other living persons, or to himself, or to himself and

one or more or other living persons,  and to transfer property is to perform such act.

• The object of the Transfer of Property Act is to define and amend law relating to

Transfer of Property by act of parties and not to transfer by operation of law. A Transfer

of Property is a contract hence all necessary requirements to constitute valid contract are

to be fulfilled
ESSENTIALS OF TRANSFER OF
PROPERTY
1) Transfer must be between two or more living Persons (Section.5)

2) The property must be transferable (Section. 6)

3) The Transfer must not be - opposed to the nature of interest affected thereby
Section.6 (h).

4) Persons competent to transfer (Section.7)

5) The Transfer must be made in the mode prescribed by the Act, under section 9.

6) If on transfer an interest in created in favour of an Unborn person - under

section 13

7) The Transfer must not be contrary to the rule against perpetuity (section 14)
WHO IS COMPETENT TO TRANSFER ?
THE TRANSFERRER MUST BE
….
1) Competent to contract –

According to Section 11 of the Indian Contract Act,  every person is competent to contract who is

the age of majority. under section.3 of the Indian majority Act,1875 a person attains majority at

the age of 18 years and if a Guardian is appointed, he would attend majority at the age of 21.

2) Sound mind -

Under section 12 of the Indian Contract Act, a person is of sound mind of the purpose of making

contract if he is capable of understandings it and of forming a rational judgement as to its effect

upon his interest. A contract made by a person of unsound mind is void

3) Disqualified person -

An insolvent and alien enemy are disqualified from contracting. A transfer by a De facto
Guardian of minors' property is invalid and will be hit by section 11 of  Hindu minority and
guardianship Act, 1956.

4) Transferor must be entitled to transferable property - or authorised to dispose off

Transferable property not his own. One who is absolute owner of the property and property
is free from encumbrances is capable to transfer the same. An owner of the property May
authorise  his power of attorney holder to transfer the property for him and on his behalf.