Transfer of Ownership in India

The Transfer of Property Act, 1882 outlines the legal formalities for transferring ownership of property in India. The act defines such a transfer may take place between individuals as well as groups, in the present or future. Besides, the transferable property may be movable or immovable.

Ownership of Property in India

The ownership of a property may be transferred by any competent person, entitled to legally transferable property or authorized to dispose a third party’s property. A transfer may be wholly or in part, and absolutely or conditionally.

What can be transferred under the Transfer of Property Act?

The Transfer of Property Act states that any property may be transferred between parties, subject to the following exceptions:

• Heir-specific transfer. This implies transfer of a property which is likely to be inherited by an heir or relative.
• An easement, which implies a non-possessory freedom to use a property that is in possession of another individual for a stated purpose.
• A property intended for self-enjoyment.
• A right to future safeguarding or maintenance of a property.
• A public office (as well as the salary of a public officer).

Fraudulent Transfer of Ownership

A transfer of ownership will be deemed as fraudulent if the transfer of immovable property is made with an intention to delay or defeat the creditors. A transfer is also voidable if it is made without consideration an intent to defraud the subsequent transferee.

Transfer of Ownership Through Gift

A transfer of ownership through a “gift” is also recognized under the Transfer of Property Act. Here, "gift" implies transfer of an existing property, moveable or immoveable, made voluntarily and without consideration, by a person (the donor), to another (the done).

Remember, a gift is recognized under the act only when it is tangible.