Transfer of Property Act Archives - PROP Reality

Digital India: We want paperless transactions

Prop Reality — Mon, 14 Dec 2015 08:05:31 +0000

“Every citizen of the country must be digitally connected,” said honorable prime minister of India, Narendra Modi while giving his speech at Digital India dinner during his visit to Silicon Valley. In presence of Adobe’s Shantanu Narayen, Cisco’s John Chambers, Microsoft’s Satya Nadella, Qualcomm’s Paul Jacobs, Google’s Sunder Pichai and The Indus Entrepreneurs president Venkatesh Shukla, Modi said that in this digital age, we have an opportunity to transform lives of people in ways that was hard to imagine just a couple of decades ago. While delivering speech, PM wished that every citizen of the country must be digitally connected. “We want our 1.25 billion citizens to be digitally connected. We already have broadband usage across India go up by 63% last year. We need to accelerate this further,” he said. If India goes 100% digital, distances across country won’t be an issue. Life in rural or even semi-urban would become better. This will certainly push up the realty prices in rural as well as in urban areas of the country. Along with national and state highways, India is going ato build I-ways. “We have launched an aggressive expansion of the National Optical Fibre Network that will take broadband to our 6 lakh villages. We will connect all schools and colleges with broadband. Building I-ways are as important as highways,” said Modi. Very soon, the number of public Wi-Fi hotspots will grow multi-fold. He said that India wants to ensure that free Wi Fi is not only there in airport lounges, but also on railway platforms. Teaming up with Google, we will cover 500 railway stations in a short time. To begin with, Google is starting with New Delhi. Government is going to use technology to build smart cities in the country. About 100 smart cities are already short listed and soon government is likely to begin developing them one by one. Rising inflation rate is always going to be a challenge for the developing economy like India. Without technology it will be impossible even to face such challenge. “Affordability of products and services is critical for our success. There are many dimensions to this. We will promote manufacture of quality and affordable products in India. That is part of our vision of Make in India, Digital India and Design in India,” said Modi. Government has to change the vision and think a like technology companies such as Google, Facebook, Adobe and others.” So, from creating infrastructure to services, from manufacture of products to human resource development, from support governments to enabling citizens and promoting digital literacy, Digital India is a vast cyber world of opportunities for you,” he said. It does not matter these days whether you are fast asleep or awake. What matters is whether you are online or offline. In his speech, he also said that Google has made teachers less awe-inspiring and grandparents more idle. Twitter has turned everyone into a reporter. The traffic lights that need to work the best are on CISCO routers. “The status that now matters is not whether you are awake or asleep, but whether you are online or offline. The most fundamental debate for our youth is the choice between Android, iOS or Windows,” he said. While concluding his speech he mentioned we have the responsibility to shape a future of peace, stability and prosperity in this region. “We all know that the dynamic Asia Pacific Region will shape the course of this century. And, India and the United States, the world’s two largest democracies, are located at the two ends of this region. Our relationship is also defined by the power of youth, technology and innovation. These can ignite a partnership that will advance and sustain prosperity in our two countries,” he said. Before thanking the august gathering, Modi said, “even more, in this Digital Age, we can draw on the strength of our values and partnership to shape a better and more sustainable future for the world.”

Box story

Zuckerberg try to grill PM in Q&A In a wonderful interactive session between Prime Minister Narendra Modi and co-founder and CEO of Facebook, Mark Zuckerberg at headquarter of Facebook, Modi told that Social media brought a big change in my thought process. In the interaction at length, prime minister invited world to ‘Make in India’. After welcoming prime minister Narendra Modi, in the question and answer session, Zuckerberg raised a question and asked, “You were one of the early adopters of the internet and social media and Facebook. Did you, at the point, think that social media and the internet would become an important tool for governing and citizen engagement and policy?” In a crisp and precise answer, Modi said that before adopting social media I never knew that I would become chief minister and prime minister in future. It was just a curiosity of knowing and learning new technology, I adopted social media. “At the moment, there is a wide gap between public and government. This is a big problem. But with the use of social media, we have come to know where we are lacking in governance. Thanks to social media, I and my government is being voted 24 hours. This helps me in understanding the situation and taking right decision,” he said. Modi further informed that earlier, one used to get latest news only through newspapers in the morning. “Many times, we used to get the news after 24 hours. Now, the news are delivered in 24 seconds. That is the impact of social media,” he said. Talking about government and governance, Modi also said that if people in government are conscious enough, they can take corrective measures on real time information. In that way, social media has played an important role in defining the right governance.

The post Digital India: We want paperless transactions appeared first on PROP Reality.

Transfer of Property Act Charges

Prop Reality — Mon, 14 Dec 2015 08:00:42 +0000

Where immovable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property; and all the provisions contained in the Transfer of Property Act which apply to a simple mortgage shall, so far as may be applicable, apply to such charge. Thus charge can be contractual or statutory.

The post Transfer of Property Act Charges appeared first on PROP Reality.

Transfer of Property Act Sales

Prop Reality — Mon, 14 Dec 2015 07:25:30 +0000

Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Transfer of tangible immovable assets of value of Rs100 or above or other intangible thing can be made only by registered instrument and in case of tangible immovable property of less than Rs100 may made either by registered instrument or by delivery of property. Rights and liabilities of buyer and seller of immovable property (Section 55) Liabilities of seller 1 In the absence of the contract to the contrary, the seller is bound –

To disclose to buyer any material defect in the property or in seller’s title thereto of which the seller is, and the buyer is not, aware, and which the buyer could not with ordinary care discover;
To produce to the buyer on his request for examination all documents of title relating to the property which are in the seller’s possession or power;
To answer the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto;
On payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a proper time and place;
Between the date of the contract of sale and the delivery of the property, to take as much care of the property and all documents of title relating thereto which are in his possession as an owner of ordinary prudence would take of such property and documents;
To give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits;
To pay all public charges and rent accrued due in respect of the property up to the date of the sale, the interest on all encumbrances on such property due on such date, and, except where the property is sold subject to encumbrances, to discharge all encumbrances on the property then existing.

2 Where the whole of the purchase-money has been paid to the seller, he is also bound to deliver to the buyer all documents of title relating to the property which are in the seller’s possession or power Rights of seller The seller is entitled –

To the rents and profits of the property till the ownership thereof passes to the buyer;
Where the ownership of the property has passed to the buyer before payment of the whole of the purchase-money, to a change upon the property in the hands of the buyer, any transferee without consideration or any transferee with notice of the non-payment, for the amount of the purchase-money, or any part thereof remaining unpaid, and for interest on such amount or part from the date on which possession has been delivered.

Liabilities of buyer The buyer is bound –

To disclose to the seller any fact as to the nature or extent of the seller’s interest in the property of which the buyer is aware, but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest;
To pay or tender, at the time and place of completing the sale, the purchase money to the seller or such person as he directs but where the property is sold free from encumbrances, the buyer may retain out of the purchase-money the amount of any encumbrances on the property existing at the date of the sale, and shall pay the amount so retained to the persons entitled thereto;
Where the ownership of the property has passed to the buyer, to bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller;
Where the ownership of the property has passed to the buyer, as between himself and the seller, to pay all public charges and rent which may become payable in respect of the property, the principal moneys due on any encumbrances subject to which the property is sold, and the interest thereon afterwards accruing.

Rights of buyer

The buyer is entitled – (a) where thee ownership of the property has passed to him, to the benefit of any improvement in, or increase in value of, the property, and to the rents and profits thereof; (b) unless he has improperly declined to accept the delivery of the property, to charge on the property, as against the seller and all persons claiming under him, to the extent of the seller’s interest in the property, for the amount of any purchase-money properly paid by the buyer is anticipation of the delivery and for interest on such amount; and, when he properly declines to accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to compel specific performance of the contract or to obtain a decree for its rescission.

The post Transfer of Property Act Sales appeared first on PROP Reality.

Transfer of Property Act Gifts

Prop Reality — Sun, 13 Dec 2015 07:56:49 +0000

‘Gift’ is the transfer of certain existing movable or immovable property made voluntarily and without consideration by one person, called the donor, to another, called the donor, and accepted by or on behalf of the done. (Section 112) Acceptance of the gift must be made during the lifetime of the donor and while he is still capable of giving. For making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witness. For making a gift of movable property, the transfer may effected either by a registered instrument signed as aforesaid or by delivery. Where a gift consists of donor’s whole property, the done is personally liable for all the debts due and liabilities of the donor at the time of the gift to the extent of the property comprised therein.

The post Transfer of Property Act Gifts appeared first on PROP Reality.

Transfer of Property Act Exchange

Prop Reality — Sun, 13 Dec 2015 07:52:11 +0000

When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both the things being money only, the transaction is called an ‘exchange’. (Section 118). If any party to an exchange is by reason of any defect in the title of the other party deprived of the thing received by him in exchange, then such other party is liable to him for loss caused thereby or for the return of the thing transferred still in the possession of such other party from him without consideration. The rights and liabilities are same as of seller and buyer.

The post Transfer of Property Act Exchange appeared first on PROP Reality.

Transfer of Property Act Lease

Prop Reality — Sun, 13 Dec 2015 07:43:04 +0000

A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, expenses or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transfer by the transferee who accepts the transfer on such terms. The transferor is called the lessor, the transferee is called the lessee, the price called the premium, and the money, share, service or other thing to be so rendered called the rent. (Section 105) A lease of immovable property for agricultural or manufacturing purpose shall deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months’ notice and a lease of immovable property for any other purpose shall be deemed to be lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days’ notice. A lease of immovable property from year to year, or for any term exceeding year or reserving a yearly rent, can be made only by registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. Rights and liabilities of the lessor

The lessor is bound to disclose to the lessee any material defect in the property
The lessor is bound on the lessee’s request to put him in possession of property
If the lessee pays the rent and performs the contracts binding on the lessee may hold the property during the time limited by the lease with interruption.

Rights and liabilities of the lessee

Any material part of the property destroyed and permanently unfit for the purposes for which it was let by fire, tempests or flood, or violence of an army or of a mob, the lease shall, at the option of the lessee, be void:
If the lessor neglects to make, within a reasonable time after notice, any repairs which he is bound to make to the property, the lessee may make the same himself, and deduct the expenses of such repairs with interest from the rent, or otherwise recover it from the lessor;
Bound to pay, the premium or rent to the lessor or his agent in this behalf,
May remove, at any time whilst he is in possession of the property leased all things which he has attached to the earth provided he leaves the property in the state in which he received it;
Must not, without the lessor’s consent, erect on the property any permanent structure, except for agricultural purposes
On the determination of the lease, the lessee is bound to put the lessor into possession of the property

The post Transfer of Property Act Lease appeared first on PROP Reality.

Mortgage, Mortgagor and Mortgagee

Prop Reality — Sun, 13 Dec 2015 07:35:46 +0000

A mortgage is the transfer of any interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or performance of an engagement that may give rise to pecuniary liability. The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which the payment is secured for the time being are called the mortgage money and the instrument (if any) by which the transfer is effected is called a mortgage-deed (Section 58). Where the principal money secured is Rs100 or upwards, a mortgage can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses. Rights of mortgagor After the principal money has become due, the mortgagor has a right, on payment of the mortgage money, to require the mortgagee

To deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee,
Where the mortgagee is a possession of the mortgaged property, to deliver possession thereof the mortgagor, and
Either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and to have registered an acknowledgement in writing that any right transferred to the mortgagee has been extinguished.

A mortgagor in possession of the mortgaged property is not liable to the mortgagee for allowing the property to deteriorate, but he must not commit any act which is destructive or permanently injurious thereto, if the security is insufficient or will be rendered insufficient by such act. Rights of Mortgagee Mortgage has, at any time after mortgage-money has become due to him, and before a redemption decree or the mortgage-money has been paid or deposited a right to obtain from the court a decree that the mortgagor shall be absolutely debarred of his right to redeem the property, or a decree that property be sold The mortgage has a right to sue for the mortgage-money

Where the mortgagor binds himself to repay the same;
Where, the mortgaged property is wholly or partially destroyed
Where the mortgage is deprived of the whole or part of his security in consequence of the wrongful act or default of the mortgagor;

Liabilities of mortgage When the mortgage takes possession of the mortgage property, he must

Manages the property as if it were his own;
Collect the rents and profits thereof;
Pay the government revenue; charges of a public nature and rent
Make necessary repairs of the property
Must not commit any act which is destructive or permanently injurious to the property
He must keep clear, full and accurate accounts of all sums received and spent by him as mortgagee

The post Mortgage, Mortgagor and Mortgagee appeared first on PROP Reality.

Transfer of Title of Ownership

Prop Reality — Sat, 12 Dec 2015 07:03:01 +0000

Transfer of property refers to taking over the possession from one person to another person. The Transfer of Property Act 1882 contains specific provisions regarding what constitutes transfer and the conditions attached to it. According to the Act, ‘transfer of property’ means an act by which a person conveys property to one or more persons, or himself and one or more other persons. The act of transfer may be done in present or for future. The person may include an individual, company or association or body of individuals, and any kind of property may be transferred. Every person, who is competent to contract, is competent to transfer the property, which can be transferred in whole or in part. He should be entitled to the transferable property, or authorized to dispose off transferable property which is not his own. The right may be either absolute or conditional, and the property may be movable or immovable, present or future. Such a transfer can be made orally, unless a transfer in writing is specifically required under any law. A transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property, unless a different intention is expressed or implied. In case the property is transferred subject to the condition which absolutely restrains the transferee from parting with or disposing off his interest in the property, the condition is void. The only exception is in the case of a lease where the condition is for the benefit of the lessor or those claiming under him. Generally, only the person having interest in the property is authorized to transfer his interest in the property and can pass on the proper title to any person. According to Section 6 of the Transfer of Property Act, property of any kind may transferred. The person insisting non-transferability must prove the existence of some law or custom which restricts the right of transfer. Unless there is some legal restriction preventing the transfer, the owner of the property may transfer it. However, in some cases there may be transfer of property by unauthorized person who subsequently acquires interest in such property. According to Section 43 of Transfer of Property Act 1882, in case a person either fraudulently or erroneously represents that he is au*thorized to transfer certain immovable property and does some acts of transfer such property for consideration, then such a transfer will continue to operate in future. It will operate on any interest which the transferor may acquire in such property. This will be at the option of the transferee and can be done during the time during which the contract of transfer exists. As per this rule, the rights of bona fide transferee, who has no notice of the earlier transfer or of the option, are protected. This rule embodies a rule of estoppel i.e. a person who makes a representation cannot later on go against it. The rights of the transferees will not be adversely affected, provided: they acted in good faith; the property was acquired for consideration; and the transferees had acted without notice of the defect in title of the transferor. The following conditions must be satisfied:

There must be as representation by the transferor that he has authority to transfer the immovable property.
The representation should be either fraudulent or erroneous.
The transferee must act on the representation in good faith.
The transferor should subsequently acquire some interest in the property he/she had agreed to transfer.
The transferee may have the option to acquire the interest which the transferor subsequently acquires. The exercise of option must be during the period of continuation of the contract and not afterwards.
When all these conditions exist, the transferee becomes entitled to the interest, which is subsequently acquired by the transferor. It is to be noted that the transferee, acting upon the representation, has no right against any subsequent bonafide transfer for consideration.

The post Transfer of Title of Ownership appeared first on PROP Reality.

Decoding ‘Transfer of Property Act, 1882’

Prop Reality — Sat, 12 Dec 2015 06:49:28 +0000

The rules and regulations of transferring property were defined few centuries back. But in India, the Transfer of Property Act, 1882 is been followed religiously. This act has defined every aspect of ‘Transfer of Property’ in detail. Learning from the chapter ‘Real Estate Law, Practice and Procedures’ from the book ‘Various Laws Governing Real Estate Transaction’, we have tried to elaborate the Act in layman’s language. This Act lays down the general principles of realty, like part-performance and has provisions for dealing with property through sale, exchange, mortgage, lease, lien and gift. A person acquiring immovable property or any share/interest in it is presumed to have notice of the title of any other person who was in actual possession of such property. Every person competent to contract and entitled to transferable property, or authorized 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 manner prescribed by any law for the time being in force. A transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property. A transfer of property may be made without writing. The definition ‘Transfer of Property’ written in books, says transfer of property means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living persons; and ‘to transfer property’ is to perform such act. Living persons includes a company or association or body of individuals, whether incorporated or not, (Section 5) Properties, which cannot be transferred

The chance of an heir-apparent succeeding to an estate, the chance of relation obtaining a legacy on the death of kinsman, or any other mere possibility of a like nature, cannot be transferred.
A mere right of re-entry for breach of a condition subsequent cannot be transferred to anyone expect the owner of the property affected thereby.
An easement cannot be transferred apart from the dominant heritage.
An interest in property restricted in its enjoyment to the owner personally cannot be transferred by him.
A mere right to sue cannot be transferred.
A public office cannot be transferred, nor can the salary of public officer, whether before or after it has become payable.
Stipends allowed to military, naval, air-force and civil pensioners of the government and political pensions cannot be transferred.
Any transfer for an unlawful object or for a unlawful consideration within the meaning of Section 23 of the Indian Contract Act, 1872 is illegal and hence void.
A tenant having a non-transferable right of occupancy.
An estate in respect of which default has been made in paying revenue
The lease of an estate under the management of a Court of Wards to assign his/her interest as such tenant, farmer or lessee.
A right to future maintenance, in whatsoever manner arising, secure XXX determined, cannot be transferred.

The post Decoding ‘Transfer of Property Act, 1882’ appeared first on PROP Reality.