Q1: What Happens if a Conditional Transfer to One Person Fails and There Is an Ulterior Disposition to Another?

A1: If the prior disposition fails, the ulterior disposition takes effect even if the failure occurs in a manner not contemplated by the transferor. However, if the intention is that the ulterior disposition only takes effect if the prior disposition fails in a specific manner, it will only take effect under those circumstances.

Q2: Can You Provide an Example of a Conditional Transfer With an Ulterior Disposition?

A2: Yes:
(a) A transfers Rs. 500 to B on the condition that B executes a lease within three months after A’s death. If B fails, the money goes to C. If B dies before A, the disposition in favor of C takes effect.
(b) A transfers property to his wife and also transfers it to B if his wife dies during A’s lifetime. If both A and his wife die simultaneously, and it cannot be proven who died first, the disposition in favor of B does not take effect.

Q3: How Does an Ulterior Transfer Depend on the Fulfillment of a Condition?

A3: An ulterior disposition cannot take effect unless the condition is strictly fulfilled. For instance, if A transfers Rs. 500 to B to be paid on his attaining majority or marrying, with a condition that if B marries without C's consent, the money will go to D, and B marries at 17 without consent, the transfer to D takes effect.

Q4: Does the Invalidity of an Ulterior Disposition Affect the Prior Disposition?

A4: No, the prior disposition remains valid even if the ulterior disposition is invalid. For example, if A transfers a farm to B for her life, and there is a condition regarding her behavior towards her husband, B retains the farm for her life regardless of the validity of that condition.

Q5: What Must Be Considered for a Condition That Causes a Transfer to Cease to Be Valid?

A5: The event specified in the condition must be legally valid. If it cannot legally constitute the condition of the creation of an interest, the condition is invalid.

Q6: Can You Provide Examples of Conditions That Cause a Transfer to Cease?

A6: Yes:
(a) A transfers a farm to B for his life, stipulating that if B cuts down a certain wood, the transfer will cease. If B cuts down the wood, he loses his interest in the farm.
(b) A transfers a farm to B with the condition that if B does not go to England within three years, his interest will cease. If B does not go, his interest in the farm is terminated.

Q7: What Is Required of an Owner When a Transferor Attempts to Transfer Property They Do Not Own?

A7: The owner must elect to either confirm the transfer or dissent from it. If they choose to dissent, they must relinquish any benefits conferred by the transferor, which will revert to the transferor or their representative.

Q8: Can You Provide an Example Illustrating This Election?

A8: Sure! If A tries to gift a farm worth Rs. 800, owned by C, to B, and simultaneously gives Rs. 1,000 to C, C must choose whether to keep the farm or the Rs. 1,000. If C keeps the farm, they lose the Rs. 1,000 gift.

Q9: What Happens if the Transferor Dies Before the Owner Makes an Election?

A9: According to "Transfer of Property Act, 1882." If the transferor dies before the owner elects, the transferor's representative must pay the owner the value of the property they attempted to transfer, in this case, Rs. 800 to B from the Rs. 1,000 given to C.

Q10: Does a Person Who Benefits Indirectly From a Transaction Need to Make an Election?

A10: No, a person who benefits indirectly does not need to elect. Only those who directly benefit from the transaction need to confirm or dissent.

Q11: What Happens if the Owner Accepts a Particular Benefit in Lieu of the Property?

A11: If a specific benefit is conferred in lieu of the property, the owner must relinquish that particular benefit if they claim the property but does not have to relinquish any other benefits from the transaction.

Q12: How Is an Election Confirmed When a Benefit Is Accepted?

A12: Acceptance of the benefit constitutes an election to confirm the transfer, provided the person was aware of their duty to elect and the relevant circumstances. If they enjoy the benefit for two years without dissent, it is presumed they have elected to confirm.

Q13: What if the Owner Does Not Signify Their Intention to Elect Within a Year?

A13: If the owner does not communicate their intention to confirm or dissent within one year, the transferor or their representative can require the owner to make an election. If the owner fails to respond in a reasonable time, they are deemed to have confirmed the transfer.

Q14: How Does Disability Affect the Election Process?

A14: If the person entitled to elect is disabled, the election is postponed until the disability ceases or until a competent authority makes the election on their behalf.

Q15: How Are Periodical Payments Like Rents or Pensions Treated Upon the Transfer of Interest?

A15: In the absence of a contract or local usage to the contrary, such payments are deemed to accrue due from day to day and are apportionable between the transferor and transferee. They remain payable on their appointed payment days.

Q16: What Happens When Property Is Divided Among Several Owners After a Transfer?

A16: The benefit of any obligation related to the property passes to the new owners proportionate to their share in the property, provided the duty can be severed without substantially increasing the burden. If it can't be severed or would increase the burden, the owners must designate one person to fulfill the obligation.

Q17: Are There Any Exceptions to the Apportionment of Obligations When Property Is Severed?

A17: Yes, this section does not apply to leases for agricultural purposes unless directed otherwise by the State Government.

Q18: Can You Provide an Illustration of How Benefits and Obligations Are Apportioned Among Multiple Owners?

A18: Certainly! If A sells a house leased to E for Rs. 30 and a sheep, and B provides half the purchase money while C and D each provide a quarter, E must pay Rs. 15 to B and Rs. 7.50 each to C and D. The sheep must be delivered as directed jointly by B, C, and D.

Q19: What if the Obligation Cannot Be Severed?

A19: If the obligation cannot be severed or if severing it would substantially increase the burden, it will be performed for the benefit of the owner designated by all the owners collectively.

Q20: What if a Person Authorized to Transfer Property Does So Under Variable Circumstances?

A20: If a person, authorized only under certain variable circumstances, transfers immovable property for consideration while alleging those circumstances exist, they will be deemed to exist if the transferee has made reasonable inquiries and acted in good faith.

Q21: Can You Give an Example of This Situation?

A21: Sure! If A, a Hindu widow, sells a field, claiming her property is insufficient for her maintenance, and B conducts a reasonable inquiry and buys the field in good faith, the transfer is valid even if the circumstances change later.

Q22: What Is Required for a Transferee to Be Protected Under This Provision?

A22: The transferee must use reasonable care to ascertain the existence of the alleged circumstances and act in good faith during the transaction.

Q23: What Happens When a Third Person Has a Right to Restrain the Use of Another's Land?

A23: If a third person has the right to restrain the enjoyment of another's immovable property for their own beneficial enjoyment, this right can be enforced against a transferee who has notice of it or against a gratuitous transferee. However, it cannot be enforced against a transferee for consideration who does not have notice of the right.

Q24: Can You Provide an Illustration of This Situation?

A24: If A contracts to sell Sultanpur to B and then sells it to C, who has notice of the contract, B can enforce the contract against C just as he could against A.

Q25: What Is the Rule Regarding Transfers by an Ostensible Owner?

A25: If a person, with the express or implied consent of the interested parties, is the ostensible owner of immovable property and transfers it for consideration, the transfer cannot be contested on the basis that the transferor lacked authority, provided the transferee acted in good faith and took reasonable care to confirm the transferor's authority.

Q26: How Does the Power to Revoke a Transfer Affect Subsequent Transfers?

A26: If a person transfers immovable property while reserving the power to revoke that transfer, and later transfers the property for consideration to another person, this subsequent transfer acts as a revocation of the prior transfer to the extent of the reserved power.

Q27: Can You Provide an Example Related to the Power to Revoke?

A27: If A leases a house to B with the power to revoke the lease if a specified surveyor deems B's use detrimental, and then A leases the house to C, this lease to C acts as a revocation of B's lease, but only if the surveyor confirms B's use was detrimental.

Q28: What Occurs When a Person Without Authority Transfers Property?

A28: If a person fraudulently or erroneously claims authority to transfer immovable property and does so for consideration, the transfer can operate on any interest the transferor later acquires in that property during the contract's duration, at the option of the transferee.

Q29: Does This Rule Affect the Rights of Bona Fide Transferees?

A29: No, this provision does not impair the rights of bona fide transferees for consideration who had no notice of the option to enforce the transfer.

Q30: Can You Illustrate This Situation?

A30: If A sells fields X, Y, and Z to C, falsely claiming authority to do so, and later inherits field Z from his father B after B's death, C can require A to deliver Z to him as long as he hasn’t rescinded the contract of sale.

Q31: What Happens When Immovable Property Is Transferred for Consideration to Multiple Persons?

A31: If the consideration is paid from a common fund, the persons are entitled to interests in the property that reflect their respective interests in that fund. If the consideration is from separate funds, their interests in the property will be in proportion to their contributions to the consideration. If there is no evidence of their interests or contributions, they are presumed to have equal interests.

Q32: Can You Provide an Illustration of This Situation?

A32: If A, B, and C contribute to buying a property from a common fund, their respective shares in the property will correspond to their shares in that fund. If A contributed 50%, B 30%, and C 20%, then their interests in the property will reflect those percentages.

Q33: How Is the Consideration Shared When Distinct Interests Are Involved in a Transfer?

A33: If persons with distinct interests in immovable property transfer it for consideration, they share the consideration equally if their interests are of equal value. If the interests are of unequal value, they share proportionately based on the value of their respective interests.

Q34: Can You Give an Example?

A34: If A owns a half interest in a property worth Rs. 600, and B and C each own a quarter interest worth Rs. 400, and they sell the property for Rs. 1,000, A would receive Rs. 600, while B and C would share the remaining Rs. 400.

Q35: What Occurs When Co-Owners Transfer a Share in Common Property?

A35: When co-owners transfer a share without specifying which shares are being transferred, the transfer is deemed to affect their shares equally if they are equal. If the shares are unequal, the transfer is proportionate to the shares held.

Q36: Can You Illustrate the Co-Owners' Transfer?

A36: If A owns an eight-anna share and B and C each own a four-anna share in a property, and they transfer a two-anna share to D without specifying from which share, the one-anna share will be taken from A's share and half-an-anna each from B and C's shares.

Q37: How Do Priority Rights Work in Transfers?

A37: If a person creates multiple rights in the same immovable property at different times, and those rights cannot coexist fully, later-created rights will be subject to the earlier rights unless there is a specific contract or reservation stating otherwise.

Q38: What Is the Transferee's Right if the Property Is Insured?

A38: If immovable property is transferred and is insured against loss or damage, the transferee can claim any insurance money received by the transferor to reinstate the property, unless a contract states otherwise.

Q39: What Is the Rule Regarding Rents Paid in Good Faith?

A39: If a person pays rent or profits to someone holding property in good faith, they are not liable for those rents or profits even if it later turns out that the person had no right to receive them.

Q40: What Rights Does a Bona Fide Holder Have When They Make Improvements on Property They Believe They Own?

A40: If a bona fide holder of immovable property makes improvements under the belief that they are entitled to the property and are later evicted by someone with a better title, they can require the evictor to either pay for the value of the improvements or sell their interest in the property at its market value at the time of eviction. The estimated value of improvements is assessed at the time of eviction.

Q41: What Happens to Crops Planted by the Bona Fide Holder?

A41: If the bona fide holder has planted crops that are growing at the time of eviction, they are entitled to those crops and have the right to enter the property to gather and carry them.

Q42: Can Property Be Transferred During a Pending Lawsuit Involving That Property?

A42: No, during the pendency of a suit where immovable property rights are in question, the property cannot be transferred or dealt with by any party in a way that affects the rights of other parties involved in the suit, unless authorized by the court and under its imposed terms.

Q43: How Is the Pendency of a Suit Defined?

A43: The pendency of a suit is considered to commence from the date the plaint is presented or the proceeding is instituted in a competent court, and it continues until a final decree or order is made and satisfied or has become unobtainable due to the expiration of a limitation period for execution.

Q44: What Constitutes a Fraudulent Transfer?

A44: A transfer of immovable property made with the intent to defeat or delay creditors is considered fraudulent and can be voidable at the option of any creditor affected by it. However, this does not impact the rights of a transferee who acted in good faith and for consideration.

Q45: How Should a Creditor Initiate a Suit to Avoid a Fraudulent Transfer?

A45: A creditor must institute a suit to avoid a fraudulent transfer on behalf of, or for the benefit of, all creditors involved.

Q46: What Is the Principle of Part Performance in Relation to Immovable Property?

A46: The principle of part performance applies when a person has a written contract to transfer immovable property and the transferee has taken possession of the property or continues in possession as part of the contract. If the transferee has done acts furthering the contract and is willing to perform their part, the transferor cannot enforce any rights against the transferee regarding the property, even if the transfer hasn't been legally completed.

Q47: What Must the Written Contract Include for Part Performance to Be Applicable?

A47: The written contract must be signed by the transferor, and the terms necessary to constitute the transfer should be ascertainable with reasonable certainty.

Q48: What Happens if the Transferor Attempts to Enforce Rights Against the Transferee?

A48: If the transferee has taken or continued in possession of the property and has acted in furtherance of the contract, the transferor is barred from enforcing any rights regarding that property against the transferee, except for rights explicitly stated in the contract.

Q49: Does the Principle of Part Performance Affect Other Legal Rights?

A49: No, the principle does not affect the rights of the transferor or anyone claiming under them that are expressly provided by the terms of the contract.

You can also learn about :
Sale of Immoveable Property | Model Tenancy Act 2021 | Rights and Obligations of Landlord and Tenant | Registration of Real Estate under RERA 2016 | Details to be Published on Website under RERA 2017