The Transfer of Property Act, 1882 (TPA) is the foundation of how immovable property changes hands among living persons. Its principles apply every time a flat is sold, a loan is secured on land or a property is gifted.

What is a transfer

Section 5 defines transfer as an act by which a living person conveys property to one or more living persons. Wills and inheritance are governed by succession law, not the TPA.

Main modes of transfer

• Sale (Section 54): transfer of ownership for a price. For immovable property worth one hundred rupees or more it can be made only by a registered instrument. A mere contract for sale does not by itself create an interest in the property.
• Mortgage (Section 58): transfer of an interest to secure a loan. Types include simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds and anomalous mortgage.
• Lease (Section 105): transfer of a right to enjoy property for a time in consideration of a price or premium.
• Exchange (Section 118): mutual transfer of ownership of things.
• Gift (Section 122): voluntary transfer without consideration, which must be accepted by the donee during the donor's lifetime and, for immovable property, made by a registered instrument.

Important doctrines

• Part performance (Section 53A): protects a transferee in possession under a written contract from being dispossessed by the transferor.
• Lis pendens (Section 52): a transfer of property in dispute during a pending suit is subject to the outcome of that suit.
• Fraudulent transfer (Section 53): transfers made to defeat creditors are voidable.
• Ostensible owner (Section 41) and the rule of feeding grant by estoppel (Section 43) protect certain innocent transferees.

Common pitfalls

• Relying on unregistered agreements, power of attorney or will to claim ownership.
• Buying property under litigation without checking court records.
• Informal gifts without registration.
• Failure to redeem a mortgage and obtain a release deed.

A properly drafted and registered document, together with due diligence, is the cheapest insurance in property transactions.

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This article is for general information only and is not legal advice. Law and procedure change; please verify the current position for your specific case. Last reviewed: November 2026.