The Transfer of Property Act provides detailed provisions describing what property means under this, what transfer is and the conditions attached to it, modes of transfer, etc. The Act came into effect on July 1st, 1882. When the transfer of property takes place, a transfer deed in writing is not always needed. Section 9 of the Transfer of Property Act deals with the Oral Transfer of property.
Modes of Transfer under TPA
There are two modes of Transfer of property under TPA-
Under TPA, the property can be transferred either by Delivery of possession or by Registration.
- Delivery of Possession- In a property where registration is not needed, a transfer can be completed by the delivery of possession.
- Registration- Where it’s written that registration is necessary, a transfer cannot be done without Registration of a deed.
What is Oral Transfer (Section 9 of the Transfer of Property Act) as per TPA?
The notion of Oral Transfer is further developed in Section 9 of the Transfer of the Property Act of 1882. In situations when it hasn’t been specifically stated that a property must be legally transferred in writing, it specifies that a transfer of property may be made verbally. But there are some situations where Writing is compulsory, and the following situations call for writing:
- The sale of immovable property worth more than one hundred rupees. Section 54 of the Transfer of Property Act of 1882 makes this provision.
- The sale or return of additional intangibles (Provided under section 54 of the Transfer of Property Act, 1882)
- Simple mortgage (Offered in accordance with Section 59 of the Transfer of Property Act of 1882)
- Immovable property leases that are annual have a duration longer than a year or reserve a rent payment every year. It is offered in accordance with Section 107 of the Transfer of Property Act, 1882)
- A trade. It is provided under section 108 of the Transfer of Property Act of 1882.
- The gift of real estate. It is contained in the Transfer of Property Act of 1882’s Section 123.
- Transfer of an actionable claim. Section 130 of the Transfer of Property Act of 1882 makes this provision.
- Every other mortgage secures one hundred rupees or more. It is offered in accordance with Section 59 of the Transfer of Property Act.
Interpretation of Section 9 (Oral Transfer) of TPA
In every situation when a written document is not expressly required by law, an Oral Transfer of property may be made, according to section 9 of TPA. Some transfers require written documentation because it is required by law. It is necessary to transfer property in writing in accordance with sections 54, 58 (apart from mortgages secured by title-deed deposits), 59, 105, 107, 108, 123, and 130. These are all previously mentioned. In addition to these requirements, gifts of real estate at the moment of marriage must also be recorded, and in writing, Oral Transfer cannot be done for the same.
Oral Transfer in other situations
- Gift deed Registration of Immovable property in case of Marriage
A written and registered deed of gift of real estate at the moment of marriage is required.
- Oral Transfer of gift
Peddu Reddiar v. Kothanda Reddi
The decision in this case eventually confirmed the legality of an oral property division and established that verbal transfers are permitted where a written document is not needed by law.
- Family arrangement and Family Settlement
The court has already established in one of the judgments that a family agreement does not always have to be in writing and can instead be verbal. Even if the property comprises immovable property and the value of the mother’s portion therein exceeds Rs. 100, the mother may give up her stake in the joint family property without writing and without a recorded document.
In a case involving charges of fraud and undue influence, a three-judge panel of the Supreme Court also recognized that family settlements could be oral, and there is no requirement to keep them in writing.
The Transfer of Property Act came into effect on July 1st, 1882. Transfer of property can be done through a written deed or orally. Section 9 of TPA clearly states the concept of Oral Transfer. It can be clearly seen that Oral Transfer can be done until it is expressly written that a written deed is necessary. Get Legal online advice to know more.