The Transfer of Property Act, 1882 (TPA) is a key law in Indian civil legislation. It governs how property gets transferred between living persons. Whether it’s a sale, gift, mortgage, or lease — this Act lays down the legal framework. In this blog, we’ll cover the essential features, key sections, and different types of property transfers under the Act.
What Is the Transfer of Property Act?
The TPA applies to voluntary transfers of property made during a person’s lifetime (inter vivos). It does not cover transfers by court order, inheritance, or wills.
The Act defines both the mode of transfer and the legal rights and duties of the transferor and transferee.
It applies to movable and immovable property, though most sections deal specifically with immovable property.
Key Features
- Enacted in 1882, still in force with several amendments
- Applies across India, except Jammu & Kashmir and certain tribal areas
- Covers inter vivos transfers only (not wills or succession)
- Defines rules for sale, mortgage, lease, exchange, and gift
- Lays down essential conditions, rights, and restrictions on transfers
Important Definitions Under the Act
- Transfer of Property: Act by which a living person conveys property to another living person
- Living Person: Includes individuals, companies, or associations
- Immovable Property: Includes land, buildings, hereditary rights (not standing timber or grass)
These definitions appear in Section 5 and other early provisions of the Act.
Types of Property Transfers Under TPA
✅ Sale (Section 54)
A sale is a transfer of ownership in exchange for a price.
- Must be done through a registered instrument if the property value is ₹100 or more
- Involves absolute transfer of ownership
✅ Mortgage (Section 58)
A mortgage means transferring an interest in immovable property to secure a loan.
Types include:
- Simple mortgage
- Mortgage by conditional sale
- Usufructuary mortgage
- English mortgage
- Mortgage by deposit of title deeds
- Anomalous mortgage
Each type has specific conditions and consequences under the law.
✅ Lease (Section 105)
A lease is a transfer of a right to enjoy property for a specific period, in exchange for rent.
- Can be oral (with delivery of possession) or written
- Includes rights and duties of both lessor and lessee
✅ Exchange (Section 118)
Exchange means transfer of ownership in one property for ownership in another.
- Unlike a sale, there’s no money consideration
- Can include movable or immovable property
✅ Gift (Section 122)
A gift is the transfer of property without consideration.
- Must be voluntary and unconditional
- Must be made through a registered document
- Acceptance by the donee is mandatory
Doctrines Under the Transfer of Property Act
- Doctrine of Election (Section 35)
A person can’t accept and reject the same instrument. If you accept a benefit under a deed, you must also accept the burden. - Doctrine of Lis Pendens (Section 52)
If a property dispute is pending in court, you can’t transfer that property to someone else. - Doctrine of Part Performance (Section 53A)
If a person has taken possession of a property in part performance of a contract and is ready to perform their part, the transferor cannot take back the property even if the transfer is not registered. - Fraudulent Transfer (Section 53)
Transfers made to defeat creditors are voidable at the option of those creditors.
Who Can Transfer Property?
Under Section 7, only a person who is competent to contract and has ownership or authority over the property can transfer it.
The transferee must also be capable of holding property. In some cases, minors and companies have restrictions on receiving certain kinds of transfers.
Conditions and Restrictions on Transfers
The Act allows certain conditional transfers. For example:
- Transfer on condition of performance or non-performance
- Conditional gifts
- Transfers to unborn persons (Section 13)
→ Allowed only through a prior interest given to someone living
→ The entire interest must be given to the unborn person - Rule against Perpetuity (Section 14)
Property cannot be tied up beyond a certain limit — it must eventually vest.
Recent Developments and Case Law
Recent courts have clarified key points:
- Suraj Lamp & Industries v. State of Haryana (2011)
Held that GPA sales (General Power of Attorney) do not amount to valid transfer of ownership. - K. Basavarajappa v. P. Gurudutt (2022)
Reinforced the idea that part performance (Sec. 53A) cannot be used if the transferee is unwilling to perform their part.
These cases highlight the evolving interpretation of the Act in real estate and contract contexts.
Conclusion
The Transfer of Property Act, 1882 forms the foundation of property law in India. It balances the interests of buyers, sellers, donors, lenders, and lessees while protecting rights and preventing misuse. Whether you plan to specialise in real estate law or want to understand how property deals work legally, this Act is essential.
