Legal Guide

What is Section 7 of the Transfer of Property Act?

by Bhavya Choudhary · 3 min read

Section 7 of the Transfer of Property Act

Introduction

  • Section 7 of the Transfer of Property Act, talks about the issue of who is competent to perform a transfer of property. Section 7 of the Transfer of Property Act means that individuals who are legally competent to make a transfer are eligible.
  • As per the Indian Contract Act and Indian Registration Act, eligibility and competency are taken into consideration.

What is the Transfer of Property? 

  • In the lives of humans, property holds a great amount of value, not only economically and physically but also emotionally.
  • Not only it gives a sense of economic value, but it also makes us feel settled and secure. But sometimes people need to transfer these properties to someone due to certain reasons.

The reasoning behind bringing this Law

  • Most of the time, keep it inside the Family or maybe to a close one. In the Transfer of Property Act 1882, the laws regarding the transfer of property were discussed thoroughly for all.
  • Legal consultancy services mostly talk about the problems associated with Section 7 of the Transfer of the Property Act 1882

What does not come under the Transfer of Property?

There are few transfers in society not governed under the Transfer of Property Act; we will discuss them now.

  • The transfer between the two blood relatives is known as partition by dividing the property among them. 
  • These partitions are not considered a transfer of property as per Section 7 of the transfer of property act. They are not competent to transfer property as it is not a transfer but a division of property along with succession. 
  • In the cases where the property of the person is transferred on the basis of the succession by the death/sacrifice of the person then, and in the person is sacrificing his part of the property. 
  • In the cases of property transfer to the minor, the property must be transferred to the guardian of the minor; if not, then the transfer will not be considered under the transfer of property act. 
  • An easement is not a transfer. 
  • The will of the person is the last wish of him on the succession of his property; the will talks about the ratio or the method of transfer of the property of the deceased person. This is not a transfer under Section 7 of the Transfer of Property Act. 
  • The transfers within the family in case of a dispute are also not considered.

What are the kinds of transfer of property under the Transfer of Property Act?

There are five kinds of property transfer in the Act- 

  1. Gift – is the transfer of property to someone else without anything in return with good faith. 
  2. Sale – is selling the property for the money in consideration. 
  3. Mortgage – a transfer of property but only for limited interest. 
  4. Lease – is the transfer of property for a definite period. 
  5. Exchange – it is the transfer of property, but money is not the main objective, which is anything else other than money.

Who is competent to transfer the property?

Section 7 of the transfer of the property act talks about the competency of the person who is legally competent to propose the transfer of property; it says that the person who is eligible to make a contract is also eligible to make the transfer of property. 

What does Section 7 of the Transfer of Property Act say?

Section 7 of the Transfer of Property Act talks about the definition of the competency of a person to make a valid transfer. Section 7 of the Transfer of Property Act says that – 

 “Persons competent to transfer.—Every person competent to contract and entitled to the transferable property, or authorised to dispose of transferable property not his own, is competent to transfer such property either wholly or in part, and either absolutely or conditionally, in the circumstances, to the extent, and in the manner, allowed and prescribed by any law for the time being in force.”

Transfer of property and Inheritance 

Section 7 of the Transfer of Property Act talks about the confusion which arises if there is a question of transferring the property to the person who is going to inherit it in the upcoming future.

Example –

The person who has the competency to inherit the same but, due to some circumstances, wants to make the transfer of property in his favor as per Section 7 of the Transfer of Property Act- 

  • A person Z, son of a Q, cannot transfer the rights of the property to someone else, even in gift deeds, until he is going to get the right himself. 
  • Z cannot transfer it until his father Q is alive.
  • If a person Z transfers the right of the property to someone J without having the rights of the ownership of the property, even in the form of gift deeds, then also the transfer of such nature will become void as per Section 7 of the Transfer of Property Act.

Conclusion 

Section 7 of the Transfer of Property Act talks about the day-to-day issues of legal consultation we go through in our society, and the eligibility and competency for the transfer of property become an issue. Section 7 of the Transfer of Property Act tries to solve it to some extent. 

Consult a property lawyer to know who are the persons who are competent and eligible to transfer a particular property.

Bhavya Choudhary

Written by

Bhavya Choudhary

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