A transfer is the conversion of something from one person to another. Property may be defined as everything real or virtual that an individual or group of people owns under the Property Law Bare Act. A property can be transferred from one person to another through transferring rights, interests, ownership, or possession. Either or all of the elements can be satisfied.
Property transfers can be accomplished in two ways:
- By the Act of Parties
- According to Law
Section 5 of the Property Law Bare Act defines property transfer. It refers to an act performed by a live person in the present or future of passing property to one or more people, by himself or by one or more living individuals. A firm, an association, or a group of persons, whether incorporated or not, are all examples of living people.
Essential components of the Property Law Bare Act
- To be a living or legal person: A transfer of property must occur between a living or a juristic person. The court defines a juristic person as an individual corporation, corporate, business society, or organization, but not a partnership. This criterion would be met by anybody who can sue or be sued.
- Transfer through Conveyance: Property conveyance can take place either now or in the future. Nothing must be transferred prior to the title.
- Transferability is required for the property: Several properties cannot be transferred, according to Section 6 of the Property Law Bare Act:
- The potential of an heir-apparent inheriting an estate, the possibility of a relative inheriting a legacy on the death of a kinsman, or any other simple possibility of a similar sort cannot be transferred.
- The simple right to re-entry for breach of a future condition cannot be transferred to anybody other than the owner.
- The easement privilege is not transferable.
- The property interest that is confined in its enjoyment to the owner cannot be transferred.
- Political pensions, public office, and public officer salaries cannot be transferred.
- The right to sue cannot be passed on.
- Military, naval, and airforce stipends, as well as political and civil pensions, cannot be transferred.
- No transfer may be done in opposition to the natural interest, and if the object or consideration is illegal, the transfer cannot be considered genuine.
- Future maintenance rights cannot be transferred.
- Tenants with an untransferable right of occupation, farmers whose estates have fallen behind on revenue payments, or lessees of estates managed by the court of wards may assign their interest as tenants, farmers, or lessees.
- Property must be transferred by a competent person: For a lawful transfer, the property transferred must be of sound mind, not inebriated, a major, or not a person banned by law from entering into a contract of transfer of property with another person.
- The transfer must be made in the given format: Property transfers do not have to be made in writing, although some properties must be transferred in writing:
- Movable property worth more than a hundred rupees is being sold.
- The sale of intangibles must be in writing.
- All mortgages worth more than a hundred rupees must be transferred in writing.
- Actionable claims must be transferred in writing.
- Immovable property is given as a gift.
Lease of immovable property for a period of greater than one year.
- The rule against perpetuity: It is required that property be transmitted throughout the lifespan of an individual. The rule against perpetually should not be observed during the period of property transfer.
- Property cannot be passed to an unborn child: It is vital to remember that while transferring the interest in the property, the person must be over the age of 18.
- Conditional transfer of property: The property can be transferred in accordance with Section 25 of the Property Law Bare Act if the condition is met. If the condition becomes impractical, illegal, contrary to public policy, or immoral, the transfer is null and invalid.
Characteristics of the Property Law Bare Act
- The Property Law Bare Act of the preamble states that it is connected to the transfer of property by the act of the properties.
- The Property Law Bare Act establishes a consistent and unambiguous legal framework for the transfer of immovable property from one living person to another living person by the act of parties.
- The Property Law Bare Act is an expansion of the Indian Contract Act of 1872, which was acknowledged as an entire regulation.
- The transfer of property legislation is not a carbon duplicate of the English transfer of property laws, which were developed in response to the country’s socioeconomic situation.
- The Property Law Bare Act is not exhaustive; it only covers the transfer of immovable property from the act of parties.
- Property transfer is subject to the concurrent list, which gives both the state legislature and the parliament the authority to establish property transfer legislation.
- The Property Law Bare Act addresses five forms of immovable property transfers, which are as follows: a) Mortgage; b) gift; c) sale; d) enforceable claims; and e) lease.
- Unlike personal laws, which vary from person to person, the Property Law Bare Act is a law that applies lex loci to all individuals residing in that jurisdiction.
- The Property Law Bare Act is guided by concepts such as justice, equity, and good conscience.
- Initially, the statute did not apply to the states of Bombay, Punjab, and Delhi since they had their own acts governing property concerns. The transfer of property statute is not now applicable in Punjab; it is in accordance with the norm of good conscience, equity, and justice.
- The Property Law Bare Act emphasizes the availability of inter-Vivos transfer in addition to the previous rules dealing with testamentary and interstate transfer.
- Because the Property Law Bare Act is a general law, it cannot override particular legislation approved by parliament.
- According to the Property Law Bare Act, total conditional restriction on the transfer of property is unlawful, while partial conditional restraint on the transfer of property is valid.
- Land documents are required for registration under Property Law Bare Act. To get the land registered, one must take legal consultation. Taking legal consultation can be efficient for getting your property registered by getting land documents.
The Act was developed with the purpose of creating a comprehensive Act that offers information on the transfer in very easy language; nevertheless, at the time of its introduction, it was not full and had several uncertainties.
It has gone through several amending procedures, and the legislation has shown its usefulness time and again. Much more analogous legislation, such as the Property Law Bare Act, remains enacted in India.