Important Terms of Transfer of Property Act Explained

Important Terms of the Transfer of Property Act

1. Transfer– It means the conveyance of a thing, property, or a right from one person to another.

2. Property– Property includes movable and immovable property. Anything which has a monetary value.

3. Act of Parties– An act that has been done with the desire and consent of the parties. It is voluntary in nature.

4. Immovable property– It is not defined in the Transfer of Property Act. Therefore it is understood from the General Clauses Act, 1897. Any piece of land, benefits accruing from land, things which are attached to the earth, rooted in the earth, embedded in the earth, and attached to what is so attached in the earth.

5. Attestation– It means when two or more witnesses see the signature of the party executing the deed and signature of the party in whose favour deed is made or any authorized agent who is authorized to do signature on behalf of parties.

6. Intervivos– Between two living persons. In the Transfer of Property Act, there is a transfer between two living persons.

7. Easement– It is the right and enjoyment of a person on other’s land or property. For example, use of parking area adjacent to ground floor by building residents. Though it is the area covered under the ground floor, but it has to be used to by all.

8. Oral transfer– It is a transfer that is made orally by a person to another person by an act of delivery of possession.

9. Alienation– It means the right of an owner to dispose of the immovable property. It may be through sale, gift, exchange, etc.

10. Repugnant– It means contradiction or inconsistent with what is already stated or mentioned.

11. Perpetuity– It means an indefinite period. The rule against perpetuity clearly prevents restrictions from being imposed on the alienation of property. It is said that the property should keep circulating. Any person can’t be the owner of a property for an indefinite period of time. This rule is mainly for the unborn child. Transfer to an unborn child can be extended or postponed to the preceding life interest and till the child becomes major and not more than that.

12. Vested interest– It is an interest which vests in a person without any condition in it. For example, the property of the father is to be succeeded by his son is the vested right of the son unless any contrary intention appears on the part of the father.

13. Unborn person– A person who is not in existence at the time when the transfer was made.

14. Contingent interest– It is an interest that a person receives in the happening of any event. Such an event whose happening is not in the hands of the receiver of interest. For example, A promises to give a piece of land to C, if B in future marries D.

15. Conditional transfer– It is a transfer made on fulfilment of condition set by the transferor like a transfer to take place if A walks 200 miles in an hour. Such a condition is void. The condition has to be reasonable in nature.

16. Ulterior disposition– It is an interest that a person gets on the failure of prior disposition in the same transaction. For example, let us suppose, A transfers his property to his wife B if A dies in the lifetime of B. But on the death of B prior to the death of A, it shall transfer to C.

17. Doctrine of Election– When any third person transfers the property of the owner of which he has no right to transfer and gives the owner options to elect either to confirm the transfer or disagree to the transfer. If he disagrees, then he shall not get any benefit that he would have received if he affirms it.

18. Gratuitous transfer– It is a transfer that is made in natural love and affection and not on consideration.

19. Lis pendens– During the pendency in any court of any suit or proceeding in which the right to immovable property is in question, then such property can’t be transferred or dealt with.

20. Tangible property– The property that can be touched or sensed. It is the property that is in physical form.

21. Mortgage– It is the transfer of an interest in immovable property for securing the payment of debt.

22. Title deeds– These are the documents relating to the title of immovable property.

23. Redeem– It means to recover back. When the mortgage money becomes due, the mortgagor has the right to make payment and redeem his property or if the title deeds were given, then redemption of documents from the mortgagee.

24. Operation of law– When the rights and liabilities are dictated and authored by the existing legal principles.

25. Arrears of rent– The rent is supposed to be paid within the due date. But when the payment of rent is delayed and not paid on time, then it is known as arrears of rent.

26. Efflux of time– When the period prescribed or specified is expired with the passage of time.

27. Tenancy at sufferance– It is when the tenant after the expiry of the lease period continues to be in possession of the leased property. The possession is rightful, but the continuance is wrongful.

28. Onerous gift– It is the transfer of numerous things in one transaction to the same person. The other person has to accept it as a whole. He cannot refuse to accept anything burdened with obligation.

29. Universal donee– The person who accepts the onerous gift from the donor is known as universal donee.

30. Executant– The person who is executing the deed of conveyance is known as an executant.

31. Instrument– In the Transfer of Property Act, instrument means non-testamentary instrument. The will is not included because this act deals with only intervivos transfer.

32. Notice– It means actual knowledge of a fact. The notice may be actual or constructive.

33. Legal personality– The personality which is capable of holding rights in the eyes of the law.

34. Right to sue– The person who has the rights against others has the right to sue on breach of their duty towards him.

35. Subrogation– It is a doctrine of equity. When one person secures another person by paying him the damages caused by a third party, then the party securing, steps into the shoes of the person secured, and asks for the claim from the person who has been injured. For example, generally, in an accident, it is the insurance company that insures the injured party, and then the insurance company steps into the shoes of the person secured and claims money from the defaulting party.

36. Prior interest– When the person to whom the interest is sought to vest doesn’t exist at the time of transfer, then a prior interest is created for the time being till the beneficiary comes into existence. It may be any person in whom such interest vests. It may be the mother, father, or guardian of the beneficiary. It happens in the case of an unborn child.

37. Power of attorney– It means to appoint a representative for the property or finance who shall be vested with limited powers and authorities. His position is similar to the owner, but he is not the owner.

38. Reversion– It means to create future interest in the property while transferring to another. The other person gets the property for usage, and after the lapse of time, it reverts back to the owner or grantor. For example, A gave his property to B, retaining a future interest in it, that after the death of B, it shall return to A or his heirs.

39. Remainder– It is different from reversion. The property here does not revert back to the owner or grantor but to the third party. For example, A gave his property to B, after the death of B, the property shall go to C and not A or his heirs.

40. Future property– It is the property that is not in existence at the time of transfer. Such property can’t be transferred because, at the time of transfer, it is necessary for the property to be in existence.