Tuesday, September 30, 2014

Property Transfers to be in Writing

Certain Transfer of immovable property requires writing:

Transfer of Property Act does not compel any particular transaction should be ‘in writing.’ (i.e. such transfer should be compulsorily written in a deed).
But the Registration Act prescribes which documents are to be in writing and which are not necessarily to be in writing.
Certain provisions of the Transfer of Property Act require that a particular transfer should not only to be in writing but also to be registered.

Under the Transfer of Property Act the following transfers should be in writing and should also be registered:
1.       Sales of immovable property of the value of Rs.100/- and upwards. (sec.54)
2.       Mortgages of immovable property. (sec.59)
3.       Leases of immovable property, for a term exceeding one year. (sec.107)
4.       Exchange of immovable property, of the value of Rs.100/- and upwards. (sec.118)
5.       Gift of immovable property (sec.123)
6.       As per Indian Contract Act, any contract made without consideration, on account of love and affection, is required to be in writing. (sec.25 of the Contract Act).
7.       A partition of joint family property is not a transfer; hence it does not require any writing.
8.       A family arrangement does not require any writing. (there is no transfer of immovable property, but a mere extinguishment of rights, interest in the immovable property.)
9.       A grant of immovable property to enjoy the usufruct (not the corpus of it) need not be in writing.



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