Transfer of property is handing over possession from one person to another. The Transfer of Property Act 1882 contains specific provisions on what constitutes transfer and the conditions attached. According to the Act, transfer of property means, 'an act by which a person conveys property to one or more other persons, or to himself and one or more other persons'.
The transfer may be in the present or for the future. Further, 'person' may be an individual, company, association or a body of individuals. Under the Act, property of any kind may be transferred.
Every person who is competent to contract is competent to transfer property either wholly or in part. He should be entitled to the transferable property, or authorised to dispose off the transferable property if it is not his own. The right may be either absolute or conditional.A transfer of property may be made without writing in cases where it is not expressly required by law. It can be transferred either absolutely or conditionally. Such transfer can be only to the extent and in the manner allowed and prescribed by law. The property may be movable or immovable, present or future.
Unless a different intention is expressed or necessarily implied, a transfer of property passes forthwith to the transferee all the interest which the transferor is capable of passing in the property and in the legal incidents.
In case the property is transferred subject to a condition which absolutely restrains the transferee from parting with or disposing off his interests in the property, the condition is void. The only exception is in the case of a lease where the condition is for the benefit of the lessor or those claiming under him.
Sale of property
Sale is a transfer of ownership in exchange for a price. Such a transfer can be made only by a registered instrument. Delivery of property is made when the seller places the buyer in possession of the property. Thus, delivery of property can be only by handing over actual possession to the buyer or to a person authorised by him.
Charge
Where the property of one person is made security for payment of money to another and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property. This can be by the actions of parties or by operation of law. The provisions of simple mortgage will apply to such charge.
Lease of property
A lease of property is the transfer of the right to use the property, made for a certain time, express or implied, or in perpetuity. Such a transfer of right should be in consideration of a price paid to the transferor by the transferee, who accepts the transfer on the terms offered. Lease of property from year to year or for any term exceeding one year can be made only by a registered instrument.
