Transfer of Property Act, 1882

( IV of 1882)
Transfer of Property Act, 1882

The Law relating to the Transfer of

Property by Act of Parties.
By Act of Parties ‫ف ریقینک ے عمل س ے‬
 
By Operation of Law ‫ق انونک ے عمل س ے‬
Definition:

 “ Transfer of Property” means an act by which a living

person conveys property, in present or in future, to
one or more other living persons, or to himself, or to
himself and one or more other living persons.

Living Person (Juristic Person)

 any individual,
 Association or body of individuals
 Company

Convey: ‫منتقل کرنا‬

Property:

 a thing or things belonging to someone

 
 anything that is owned by a person or
entity
 
 
 Property can be Movable or Immovable
Movable Property:

The property which can be moved from one

place to another,
like Cash, Bank accounts, Shares, Jewelry,
Furniture etc.
Immovable Property:

The property which is attached to the earth

and cannot be moved from one place to
another
like Land, Building, House, etc.

 Immovable property does not include

standing timber, growing crops or grass.
Modes of Transfer:

▪ Sale ‫ب یع‬
▪ Gift ‫ہ بہ‬
▪ Exchange ‫ت بادلہ‬
▪ Mortgage ‫رہن‬
▪ Lease ‫ٹ ھیکہ ی ا پ ٹہ‬
Properties may not be transferred:

Property of any kind may be transferred, except:

‫متوقع میراث‬
 Chance or possibility of legacy
 An Easement ‫حقآسائش‬
 Personal interest ‫ذاتین وعیتک ا حق‬
 Personal Maintenance ‫ن انو ن فقہ ک ا حق‬
 Mere right to sue ‫ص رفمقدمہ دائر ک رنے ک ا‬
‫حق‬
 Pension or Stipend ‫پ نشنی ا وظیفہ‬
Persons competent to transfer:

 Competent to Contract.
 Entitled to the Property
 Authorized to dispose of the property
(If not his own property)
Oral Transfer:

Transfer of property may be made without

writing in every case in which a writing is
not expressly required by law.
Conditions restraining alienation:

 Restraining from further transfer

 Restraining from absolute utilization

 Insolvent ‫ دیوا لیہ‬or endeavoring‫ن ا اہل‬

 For illegal or unlawful consideration
 Vested interest ‫حاصل ش دہ استحقاق‬
 Contingent interest ‫مشروط استحقاق‬
 
 Transfer for benefit of Un-born person
Essentials of Transfer:

 Existence of parties.

 Presence of parties (specially Transferor)

 Transferable Property

 Transferor competent to contract

 Transfer according to Law

 Different parties (Except attorney)

Joint Property

 Transfer of share by one co-owner

 Transfer of shares by all co-owners

 Joint Transfer (Transfer to joint buyers)

 Joint Transfer (Transfer from joint sellers)

Rights / Claims

 Insurance claim

 Rent paid to defective title holder

 Improvements by bonafide holder under

defective title
 Part performance
Litigation:

 No Transfer during pendency of the

litigation.
 No Transfer intends to defeat or delay the
creditor
Sale of Immovable Property

Definition:

“Sale” is a transfer of ownership in exchange

for a price paid or promised or part-paid part-
promised.
Sale how made:

 Such transfer can be made only by a

Registered instrument.
Contract of Sale.

A contract for the sale of immovable

property is only a contract that a sale of
such property shall take place on terms
settled between the parties.
 The contract itself does not create any right
or title on the property.
Essentials of Sale:
 Existence of parties.
 Presence of parties (specially Transferor)
 Transferable Property
 Transferor competent to contract
 No unlawful terms and conditions
 Different parties (Except attorney)
 All rights and interests must be transferred
 Consideration in cash and legal
 Through Registered instrument
 Delivery of possession
Duties and Liabilities of Seller (Vendor)

 To disclose the material defect in the

property or title
 To produce the documents for examination
 To answer all the relevant questions
 To execute a proper conveyance upon
payment of consideration amount
 To take care of the property and all title
documents, from contract till delivery
 To give delivery of possession
Duties and Liabilities of Seller

 To pay all dues, charges, rents etc

 To handover all the title documents

 If entire payment made, to hand over the title
documents before transfer
 if seller retains any part of property, he is
entitled to retain the documents
 If joint buyers, the buyer of greatest value is
entitled to such documents
Rights of Seller (Vendor)

 Rents and profits till transfer

 If ownership transferred before full

payment, CHARGE/right for the unpaid
amount and interest thereof
Duties and Liabilities of Buyer
(Vendee)
 To disclose any fact, due to which value of
property may increase
 To pay entire purchase money

 To bear any loss arising from destruction or

decrease in value, if ownership has passed
 To pay the rent, charge, dues etc if
ownership has passed
Rights of Buyer (Vendee)

 Rents, profits and increase in value, if the

ownership has passed.
EXCHANGE

 Definition:

When two persons mutually transfer the

ownership of one thing for the ownership
of another, neither thing or both things
being money, the transaction is called an
exchange.
Rights and Liabilities of parties

 Same Rights and Liabilities as in case of

Sale
Gift
  Definition:

Gift is a transfer of property, made

voluntarily and without any present or
future consideration, by one person called
the donor, to another, called the donee,
and accepted by the donee.
Essentials of Gift:

 Without Consideration
 Acceptance from the Donee (Receiver)
 Delivery of possession
 Through Registered Document (immovable
property)
 Non-Revocable (except some conditions)
Mortgage:
Definition: (Pledge,‫روی‬ ‫ گ‬،‫)رہ ن‬
A mortgage is the transfer of an interest in
immovable property for the purpose of securing
the payment of money advanced or to be
advances by the way of loan, an existing of
future debts, or the performance of an
engagement which may give a pecuniary
(financial ) liability. +++ (REDEMPTION)
Lease:

A lease of immovable property is a transfer

of a right to enjoy such property, made for
a certain time, or in perpetuity (Time
without end), in consideration of a price
paid.
 Thetransferor (owner) is called the Lessor,
the transferee is called the Lessee and the
consideration is called the Rent.
Lease how made:

 Through Registered document

Essentials of a Lease:

 Parties competent to contract

 Only for Immovable property

 Against valid consideration

 Delivery of possession
Duties and Liabilities of Lessor:

 To disclose material defect in the property

 To put Lessee in possession
 To allow Lessee un-interrupted enjoyment
of property
 Totransfer the rights of Lessor by Act or
parties or by operation of Law (Mutation)
Rights and Liabilities of Lessee:
 To terminate(make void) the lease in case of
destruction of property (due to earth quick or etc.)
 To make essential repairs and deduct expenses
from the rent.
 To make payments which the lesser is bound to
make and deduct same from the rent.
 To remove his own fixtures.
 To take benefits by crops growing on land and
planted or sown.
 To assign his interest in the leasehold.
Cancellation / Termination of Lease:

 Expiration of time period

 Happening of certain event

 Surrender by the Lessee

 Breach of conditions