Transfer of Property Act 1882

Under the Transfer of Property Act 1882 real estate is divided into two categories, movable and immovable. The act came into force on July 1, 1882,  dealing with the aspects of property transfer and other real estate issues between living beings. It is amongst the oldest Indian legal systems with an extension of the laws of contracts, while running parallel with the succession laws. You should be aware of the property transfer legalities under the Transfer of Property Act, especially if you are planning to either transfer or receive immovable property. 

Ways included under Transfer of Property Act 1882

Real estate transfer is done among two or more parties. The act is applicable for both individuals and companies going to transfer their rights of property.  

Key inclusions are:

  • Transfer of Property Act is applicable to immovable properties.
  • The Act is applicable on transfers in the form of lease, exchange, gift, sale, mortgage, and actionable claims.
  • The Act does not cover inheritance, wills, forfeiture, insolvency, and sale through the execution of a decree.

Types of property transfer deeds

  • Sale Deed 

The transfer of the property through the sale or purchase of the real estate is documented through the sale deed. The sale deed comprises all the details related to the buyer and the seller such as their names, addresses, property details, location and address of the property, total carpet area, and construction details. It is a crucial document for all the parties included under the Registration Act. The deed also includes the details of outstanding bank loans at the time of property transfers, if any. Apart from this, additional stamp duty is attached to the transfer of property through the sale deed. 

  • Gift Deed

This deed is executed and is documented when the property is being transferred without the exchange of money. The transferor is required to draft it on stamp paper and get it attested by the witness before the registration. 

  • Relinquishment Deed

Relinquishment deed is documented when the owner willfully transfers the property to the co-owner while relinquishing his share and rights to the property. The deed becomes irreversible and irrevocable, once it is signed by both parties and later registered. In most cases, money is not involved throughout the process. The stamp duty and other taxes are levied on the co-owner’s share in the property instead of the entire property value. 

  • Transfer Deed

Under this deed, the owner transfers his right to the real estate along with the other benefits involved therein. Transfer deeds can not be documented for the sale and purchase of any real estate. While the transfer deed is not necessary to register, however, it must be signed in the presence of witnesses.

Things to consider while making a transfer of property

  • Memorandum of Understanding

Before buying a property, the parties need to sign a deed, and before signing the deed the parties are required to sign an MoU, which is one of the critical documents holding all the information on the cost of the property, the agreed duration of the whole amount to be paid, date of the agreement between a buyer and a seller, and details of the property. 

  • Quit Claim Deed

This deed ensures the transfer of the property is done without committing any promises regarding the property. This is especially used to clear up the title issues in the transfer of the property during critical circumstances like the separation of couples or any impulse decision for property name transfer. This deed contains the complete names, price of the property, vendor and vendee, location, and legal description specifying the particulars of the property.

  • Name Change in Property Tax Document

To alter the property name after ownership transfer of property is required to submit certain documents to the Commissioner of Revenue. This process could take up to 25-30 days. The last paid tax receipt, attested copy of sale transaction deed, NoC from the particular housing society, and rightfully filled application form with signatures are some of the required documents for this process. 

  • Warranty Deed

This deed provides assurance that the seller has all legal rights to transfer property, and nobody else possesses the rights to do so. It also ensures that the property has no debts related to it. This type of documentation is more liable in comparison to the quit claim deed, as a vendee can trust that there are no unpaid debts associated with the property. This deed is also known as the “Grant Deed”, as it promises the transfer of property to the recipient. 


The process of buying and selling the property is indeed a complicated task. The transfer of property comes with its own set of rules and requirements. In case any mortgage is associated with the property, the transferor must discuss it beforehand with the transferee, as the transferer is still restricted to pay the lender even if the property is transferred and he is not interested in the property.

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