Transfer of Property Act 1882 is an Indian legislation which regulates the transfer of property in India.
According to the Act, ‘transfer of property’ means an act by which a person conveys property to one or more persons, or himself and one or more other persons. The act of transfer may be done in the present or for the future. The person may include an individual, company or association or body of individuals, and any kind of property may be transferred, including the transfer of immovable property.
In general, it means transfer of immovable property between two living persons.
Essential point Transfer of Property:
• Transfer of property is an act :- Transfer of property is an activity or process. Under this activity something is done by the parties to transfer his property. Transferring of property would mean doing to this act.
• Living persons :- Transfer of property is to be made by a living person. The person who makes the transfer is called the transferor and transferor may be human person or a juristic person (firms, companies, university, etc.) The transferor must be in existence at the time of transfer.
• Competent to contract :- The trandferor must be competent i.e. he must attain the age of majority, sound mind, not disqualified to transfer a property.
• Conveys :- In transfer of property the transferor conveys the property to the other party.
• In present or in future :- A transfer of property may be made so as to take place with immediate effect or in future date. He may also make such arrangements in which the vesting of the interest of property is postponed to a future date.
• Property :- Property can be divided into two parts – Intangible and Tangible. Intangible property such as right to catch fishes or an actionable claim,it is a claim to any debt, other than a debt secured by mortgage
of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognize as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent. Tangible property is further divided into two parts – movable and immovable property. Movable property such as car, tables, fans, etc. Immovable property such as land, building, etc.
• To another living person :- There must be another person to whom the property is transferred and that person must be live at the time of transfer. Such other person is called transferee.
According to Section 43 of the Transfer of Property Act 1882, in case a person either fraudulently or erroneously represents that he is authorised to transfer certain immovable property and does some acts to transfer such property for consideration, then such a transfer will continue to operate in future. It will operate on any interest which the transferor may acquire in such property .
The Act contemplates the following kinds of transfers: (1) Sale, (2) Mortgage, (3) Lease (4) Exchange, and (5) Gift. Sale is an out-and-out transfer of property. In mortgage, there is a transfer of limited interest in property. A lease is a transfer of a right to enjoy immovable property for a certain time or in perpetuity. Exchange is like a sale, but differs from it as regards the consideration. In sale, the consideration is money, while in exchange, the consideration is another thing. In a gift, there is no consideration.