The expression ‘Transfer of Property’ is an act by which a living person conveys immovable property to other living persons, in present or in future. Living person in the ambit of law would be defined as
- An individual
- A Hindu undivided family
- A Joint Stock Company
- A firm
- An association of persons or individuals, whether incorporated or not
- Every artificial juristic person, not falling within any of the preceding sub clauses
The Act allows transfer in the following ways
- Oral Transfer
- By instrument of writing
Very few transfers happen through oral transfer, like if the consideration for sale is less than Rs.100, or the lease is less than one year, or mortgage by deposit of title deeds.
Most transfers happen through instruments in writing. All transfer of immovable property requires registration of the document. Registration is required to create a public record of all transactions of transfer of immovable property. Records of registration are available for inspection. A buyer intending to acquire property is expected to check the antecedents of the property before signing the document of transfer, and maintenance of public records assists him in achieving the title search of the immovable property.
Person competent to transfer should be
- Competent to contract (attained the age of 21 years and is of sound mind),
- The owner of the immovable property
The owner of the immovable property has unrestricted right to transfer of property. However, the power of the person to transfer the property by virtue of an authority is subject to extent and manner allowed and prescribed by the authority given by the owner.
