Oral Transfer of Property (Section 9 of the Transfer of Property Act, 1882)

Introduction

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.
  

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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.

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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.

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Conclusion

Q1. What is registration in India?

Ans1. Registration is the process of recording a property transaction with the government, which provides legal validity to the transaction. The registration fee is also levied by the state government and is calculated as a percentage of the property’s sale value or market value, whichever is higher.

Q2. Who is responsible for paying stamp duty and registration fees?

Ans2. In most cases, the buyer is responsible for paying the stamp duty and registration fees in India. However, the responsibility for payment can vary depending on the specific details of the transaction and any agreements made between the buyer and seller.

Q3. What are the consequences of failing to pay stamp duty and registration fees?

Ans3. Failing to pay stamp duty and registration fees can result in legal penalties and complications. The property transaction may be deemed invalid or unenforceable, and the buyer may be subject to fines or legal action. It’s important to ensure that all required fees are paid in full and on time to avoid any potential issues.

Q4. What documents are required for property registration in India?

Ans4. Commonly required documents include the sale deed, identity proofs of both parties, PAN card, passport-size photographs, and encumbrance certificate. Requirements may vary slightly by state.

Q5. How is stamp duty calculated in India?

Ans5. Stamp duty is calculated as a percentage of either the property’s circle rate or the transaction value, whichever is higher. The percentage varies from state to state.

Q6. Can property registration be done online in India?

Ans6. Some states in India offer online property registration services through their official land record or registration websites, allowing users to fill forms and pay fees online. However, the physical presence may still be required for document signing and verification.

Q7. What is the difference between stamp duty and registration charges?

Ans7. Stamp duty is a tax paid to the government for legal recognition of a document, while registration charges are the fees paid for registering the document with the government to make it legally valid and accessible in official records.

Q8. Is stamp duty the same across all Indian states?

Ans8. No, stamp duty varies from state to state. Each Indian state has its own set of rates depending on factors such as property location, usage type (commercial/residential), and the gender of the buyer.

Q9. How long does the property registration process take?

Ans9. Typically, the property registration process in India takes one to two working days, provided all required documents are in order and there are no legal complications.

Q10. Is it mandatory to register a property in India?

Ans10. Yes, according to the Registration Act, 1908, it is mandatory to register any property transaction involving the sale of immovable property to ensure legal ownership and avoid disputes in the future.