Transfer of Property Act

TRANSFER OF PROPERTY
ACT
AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL
www.afterschoool.tk
02/03/09 AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 1
www.afterschoool.tk FOR PGPSE PARTICIPANTS
TRANSFER OF PROPERTY
ACT 1882
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
www.afterschoool.tk
02/03/09 AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 2
COVERAGE …
• IMMOVABLE PROPERTY ONLY
• SALE (54 – 57)
• MORTGAGE (58 – 104)
• LEASE (105 – 117)
• EXCHANGE (118- 121)
• GIFTS ( 122 – 129)
• ACTIONABLE CLAIM (130 - 137)
02/03/09 AFTERSCHO☺OL's MATERIAL 3

VESTED V/S CONTINGENT
INTEREST …
• A vested interest takes place on the date
of transfer – contingent on the happening
of some event
• Vested : It is firm and final
• Contingent : it is incomplete – as it
depends on happening or non-happening
of some event.

Immovable property …
• Not defined…
• Does not include the following :
• 1. standing timber
• 2. growing crop
• 3. grass
Immovable property includes lands and
benefits arising out of land or things
attached to land.
Attached to land?
• Means : rooted in land, embedded in land
or attached to something which is
attached to land.

Examples of immovable property…
• Rent • Right to collect dues
• Right to way from a fair or a piece of
• land
Right to ferry
• Right to fishery
• Right to receive future
rent
• Factory
• Hereditary offices
• Equity of redemption
• Interest of mortgage

These are not immovable
property…
• Royalty • Growing timber
• Copyright • Grass
• Decree for sale of • Growing crops
mortgage deed • Machinary – which is
• Right to worship not permanently
• Government attached to earth.
promissory note
• Right to recover
maintenance
allowances
Who can transfer the property?
• Sec. 7 :
• 1. competent to contract
• 2. authorised to dispose off the property
(owner or any person so authorised to sell
the property).

How to transfer :
If the value of property is above 100, then
only by registered instrument.
If the property is tangible property, and of
less than Rs. 100, by delivery only.
If the property is intangible – only by
registered instrument.
Reversions : only by registered instrument.

Attestation ..
• At least 2 persons as witness
• Each must see the executants sign and
sign a mark to that effect.
• It is not necessary that both are present at
the same time – they may be at different
times also.
• Antmus attestandi : the attestants must
put the signature with an intention to
attest.
Registration ..
• It is an essential legal formality .

DOCTRINE OF ELECTION ..
• If through one instrument, you have two
transactions – then you have to accept both the
transactions or none. You cant accept one and
reject other.
• Example: Goti sells his garden and bunglow to
Kapsa by one instrument. Kapsa only wants to
retain bunglow and wants to cancel the transfer
regarding garden, this is not possible.
• If Kapsa takes bunglow, it means, he has
confirmed the transaction and has to take
garden also.
Doctrine of feeding the grant by
estoppel
• It is the case of fraudulent transfer.
• The transferor doesn’t not have
ownership, yet he transfer for
consideration.
• Later on the transferor gets the ownership
and the transferee has not yet rescinded
the contract.
• The transferor is bound to give the
property to the transferee.
Doctrine of fraudulent transfer..
• This transfer it carried out to avoid recovery by
creditors / to cheat the creditors.
• This will be fraudulent transfer and void.
• However, if by transfer, you are giving
preference to one creditors among many
creditors, then this is not a fraudulent transfer.
• However, rights of a bonafide transferee (who
has obtained property in good faith and for
consideration) are protected by sec. 53(2)

Example:
• Khoti with the intention of cheating his creditors
sells his entire property to Goti, one of his
creditors. Can he do so?
• Yes – it is valid.
• What is the option with other creditors?
• They may go to the court in 3 months and get
Khoti declared insolvent and in that case this
transfer will be cancelled and the property will be
distributed among all the creditors
proportionately

Properties that cant be transferred?
• Right to easement
• Right to sue
• Public office
• Right to reenty on breach of a condition
• Right of an heir apparent
• Stipends
• Right to future maintenance
• Actionable claims
Doctrine of lis pendens
• Lis = dispute
• Pendens = pending
• During the pendency of a suit or inquiry, or
a litigation, a property cannot be
transferred.
• The suit must be related to such property.
• Sec. 52

Exchange ..
• Two persons undertake mutual transfer
(one property for another).
• There is no money being exchanged
• Sec. 118 to 121

GIFT
• There must be voluntary transfer of ownership
without any consideration
• The subject matter must be certain
• Only through registered instrument
• It must be accepted by the donee
• It cannot be revoked
• You cant gift one existing + one future gift by
one instrument (it will be void).
• This law doesn’t apply to mohammedans (as
muslim law is applicable on them).
Example..
• Goti gifts his bunglow to Tarachand. But
tarachand doesn’t know about it. Can Goti
cancel the gift?
• Yes – but only till the time Tarachand
knows about it and accepts it. Once
Taracchand has accepted the gift, it
cannot be revoked. Ans.

Onerous gift .
• Here gift is combining some obligation
also. The donee is at a liberty to accept it
or not.

Actionable claim
• Claim to any debt etc.
• Example:
• Arrears of rent
• PF
• Money due in insurance policy

Lease …
• Transfer of right to enjoy a property
• It is for a fixed time
• Transfer must be accepted by the
transferee
• It is made for consideration / rent

Duties of lessor
• Disclose all material defects
• Put the lessee in possession of the
property
• Allow quiet enjoyment of the property

Duties of lessee
• Disclose all interests that lessee has in the
property
• Return to the lessor the possession of the
property
• Pay on time
• Safeguard the property
• Remove all fixtures created on the
property
MORTGAGE
• To transfer a property for sometime (for
securing loan). It is similar (but not the
same) as charge

Usufractuary mortgage
• Sec 58(d) where the mortgagor (the
person who gives property) delivers
possession to the mortgagee (the banker
or the person who takes the property) and
authorises him to retain possession until
payment of the mortgage money and to
receive the rents / profits. (but there is no
right to sell the property)

English mortgage
• Here the mortgagor transfer the property
to the mortgagee and upon completion of
the time gets the property back in his own
name.
• (for example, A sells his property to B and
on due date makes the payment and
collects the property back from C and so
there are two sale transactions).

Not-actionable claims..
• Copyright
• Debentures
• Beneficial interest in immovable proeperty

Essentials of mortgage…
• Mortgage is tranfer of interest in order to
secure payment of loan. Suppose Goti
wants to take a loan, he mortgages his
property to the bank. The bank can
foreclose the property if Goti doesn’t make
the payment of loan.
• Mortgage is about immovable property.
(hypothecation is about movable
property).
Types of mortgage..
• Simple mortgage
• Mortgage by conditional sale
• Usufractuary mortgage
• English mortgage
• Equitable mortgage
• Anomalous mortgage

English mortgage …
• Where the mortgagor completely transfers
the property to mortgagee with the
condition that mortgagee will again
transfer the property if mortgagor makes
the payment.
• The property is absolutely transferred.

Equitable mortgage …
• Here the person delivers documents of
immovable property to the mortgagor
(these deeds act as security).

Anomalous mortgage
• It is a combination of various types of
mortgage (anomalous means a types of
mixtures, which cannot be identified as
one pure type).
• Suppose, you give the property, also give
the right to sell the property, and the
mortgagor also takes personal liability, in
this case, it is not usufractuary mortgage –
but anomalous mortgage.

Puisne Mortgage …
• Where the mortgagor secures the property
to second person also besides the first
mortgage, it is called puisne mortgage.

Rights of mortgagor ..
• Right to redeem – or the right to take back the
property – once the loan has been paid
• Right against clog on equity on redemption –
clog means any clause which restricts the
mortgagor from receiving the property back from
the mortgagee..
• Right of partial mortgage ( when there are two
ore more mortgages, the mortgagor can
redeeem them in parts – as he makes the
payment). (sec. 61)

Marshalling ..
• If the owner of 2 or more properties mortgages
them to one person and then mortgages one or
more properties to another person, then the
second person can ensure that first the
properties not mortgaged to him are used for
satisfying the debt. E.g. : Jitu mortgages his Flat
and Bunglow to Bank and mortgages Flat to
Goti. Now Goti can ensure that the bank uses
his Bunglow for securing the payment – and
then the flat.
subrogation
• Besides mortgagor the following are also
entitled to sue for redemption of the
property:
• Any person who has interest in the
property
• Creditor
• Surety for the payment of the mortgage
debt
• (read sec. 91 and 92 for details).
Difference between charge and
mortgage…
• Mortgage may be registered – but the
charge need not be registered –
• Charge may be created by act of law – but
the mortgage is created only by the parties
• Mortgage is transfer of interest – but
charge is not transfer of interest

Floating charge ..
• Fixed charge is on a specific property - but a
floating charge is on the assets for the time
being – these assets may change..
• It is a charge on property in the ordinary course
of business (and the property may change ).
• eg Jitu got a factory as a gift from his in laws,
with the condition that he will meet the expenses
of his father in law. Now the property may
change, but Jitu has to pay – because there is
charge.

About AFTERSCHO☺OL
• PGPSE - World’s most comprehensive
programme on social entrepreneurship –
after class 12th
• Flexible – fast changing to meet the
requirements
• Admission open throughout the year
• Complete support from beginning to the
end – from idea generation to making the
project viable.
Branches of AFTERSCHO☺OL
• PGPSE programme is open all over the
world as free online programme.
• Those who complete PSPSE have the
freedom to start branches of
AFTERSCHO☺OL
• A few branches have already started -
one such branch is at KOTA (Rajasthan).

Workshop on social
entrepreneurship
• We conduct workshop on social
entrepreneurship – all over India and out
of India also - in school, college, club,
association or any such place - just send
us a call and we will come to conduct the
workshop on social entrepreeurship.
• These workshops are great moments of
learning, sharing, and commitments.

FREE ONLINE PROGRAMME
• AFTERSCHO☺OL is absolutely free
programme available online – any person can
join it. The programme has four components :
• 1. case studies – writing and analysing – using
latest tools of management
• 2. articles / reports writing & presentation of
them in conferences / seminars
• 3. Study material / books / ebooks / audio / audio
visual material to support the study
• 4. business plan preparation and presentations
of those plans in conferences / seminars

100% placement / entrepreneurship
• AFTERSCHO☺OL has the record of
100% placement / entrepreneurship till
date
• Be assured of a bright career – if you join
AFTERSCHO☺OL

Pursue professional courses along
with PGPSE
• AFTERSCHO☺OL permits you to pursue
distance education based professional /
vocational courses and gives you support
for that also. Many students are doing CA
/ CS/ ICWA / CMA / FRM / CFP / CFA and
other courses along with PGPSE.
• Come and join AFTERSCHO☺OL


Transfer of Property Act

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Transfer of Property Act

Enviado por

Direitos autorais:

Formatos disponíveis

TRANSFER OF PROPERTY

02/03/09 AFTERSCHO☺OL's MATERIAL 3

02/03/09 AFTERSCHO☺OL's MATERIAL 4

02/03/09 AFTERSCHO☺OL's MATERIAL 6

02/03/09 AFTERSCHO☺OL's MATERIAL 7

02/03/09 AFTERSCHO☺OL's MATERIAL 9

02/03/09 AFTERSCHO☺OL's MATERIAL 10

02/03/09 AFTERSCHO☺OL's MATERIAL 12

02/03/09 AFTERSCHO☺OL's MATERIAL 15

02/03/09 AFTERSCHO☺OL's MATERIAL 16

02/03/09 AFTERSCHO☺OL's MATERIAL 18

• Sec. 118 to 121

02/03/09 AFTERSCHO☺OL's MATERIAL 19

02/03/09 AFTERSCHO☺OL's MATERIAL 21

02/03/09 AFTERSCHO☺OL's MATERIAL 22

02/03/09 AFTERSCHO☺OL's MATERIAL 23

02/03/09 AFTERSCHO☺OL's MATERIAL 24

02/03/09 AFTERSCHO☺OL's MATERIAL 25

02/03/09 AFTERSCHO☺OL's MATERIAL 27

02/03/09 AFTERSCHO☺OL's MATERIAL 28

02/03/09 AFTERSCHO☺OL's MATERIAL 29

02/03/09 AFTERSCHO☺OL's MATERIAL 30

02/03/09 AFTERSCHO☺OL's MATERIAL 32

02/03/09 AFTERSCHO☺OL's MATERIAL 33

02/03/09 AFTERSCHO☺OL's MATERIAL 34

02/03/09 AFTERSCHO☺OL's MATERIAL 35

02/03/09 AFTERSCHO☺OL's MATERIAL 36

02/03/09 AFTERSCHO☺OL's MATERIAL 37

02/03/09 AFTERSCHO☺OL's MATERIAL 40

02/03/09 AFTERSCHO☺OL's MATERIAL 41

02/03/09 AFTERSCHO☺OL's MATERIAL 43

02/03/09 AFTERSCHO☺OL's MATERIAL 44

02/03/09 AFTERSCHO☺OL's MATERIAL 45

02/03/09 AFTERSCHO☺OL's MATERIAL 46

02/03/09 AFTERSCHO☺OL's MATERIAL 47

Você também pode gostar