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Transfer of Property Act, 1882

Act· 1882· 56 pages
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Summary

The Transfer of Property Act, 1882 governs how movable and immovable property is transferred between living people by agreement - as opposed to by inheritance, which is covered separately by the Succession Act. Its preamble describes it as defining and amending the law relating to the transfer of property by act of parties, and Section 1 sets its commencement date (1 July 1882) while allowing provincial governments to extend the Act, or exempt specific areas from particular sections, by notification.

Chapter II (Sections 5-53A) lays out general rules that apply to transfers of property generally: what "transfer of property" means (Section 5), what kinds of property interests can be transferred (Section 6), who is legally competent to transfer property (Section 7), conditions that restrain alienation (Section 10), the rule against perpetuities limiting how long a transfer can postpone vesting (Section 14), and the distinction between vested and contingent interests (Sections 19-21). It also covers rules specific to immovable property, including transfer by an "ostensible owner" who is not the true owner (Section 41) and transfers made to defraud creditors (Section 53).

Chapter III (Sections 54-57) covers sales of immovable property, defining what a "sale" is and setting out the respective rights and duties of buyer and seller (Section 55). Chapter IV (Sections 58-104), one of the Act's largest chapters, governs mortgages and charges: Section 58 defines the different recognised mortgage types - simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, and mortgage by deposit of title-deeds - while later sections cover the mortgagor's right to redeem the property (Section 60), the mortgagee's right to foreclose or sell (Section 67), and rules on priority when there are multiple mortgages over the same property (Sections 78-79).

Chapter V (Sections 105-117) governs leases of immovable property, defining a lease and terms like rent and premium (Section 105), how a lease must be validly made (Section 107), the respective rights and duties of landlord and tenant (Section 108), and the rules on forfeiting a lease or waiving that forfeiture (Sections 111-114A). Chapter VI covers exchanges of property (Sections 118-121), Chapter VII covers gifts, including how a gift is made and accepted (Sections 122-123) and the circumstances in which a gift can be suspended or revoked (Section 126), and Chapter VIII covers the transfer of "actionable claims" such as debts (Sections 130-137).

Section 136 specifically bars judges, legal practitioners, and other court officers from buying, trafficking in, or acquiring any interest in an actionable claim connected to litigation before their own courts. The Act's attached Schedule lists old English statutes and earlier Indian and Pakistani enactments it partially repeals.

This is an 1882 Act - one of the oldest and most frequently used pieces of civil law in Pakistan - and it has been amended repeatedly, for example by Act No. VI of 1944 and, more recently, the Marine Insurance Act, 2018, which repealed Section 135A. Given its age and continuous amendment, specific provisions - particularly on mortgages, leases, and any applicable time limits - should be checked against the current official text.

Key topics

property transfer lawsale of immovable propertymortgages and chargesleases of propertygifts and actionable claims

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