One’s property is an essential part of their socioeconomic life. According to the law, property is a group of rights attached to an item or plot of ground. The phrase now refers to both tangible and intangible property, including patents and copyrights.
However, the dispositions of property have a greater bearing on its economic value than do its intangible elements. As a result, property law has grown to be an important branch of civil law. Certain provisions of the Transfer of Property Act of 1882, which regulates the transfer of immovable property inter vivos, or between living individuals, also apply to the transfer of moveable property.
exchange under transfer of property act 1882
- According to section 118 of the Transfer of Property Act, 1882, a transaction is deemed an “exchange” when two parties mutually transfer ownership of one item for another, even if neither party is receiving money in exchange.
- After an exchange is completed, property may only be transferred in the way specified for property transfers by sale.
essentials of exchange under transfer of property act
- Ownership Transfer: Some existing property is transferred as part of the exchange. The owner’s whole interest is transferred together with the ownership. An exchange does not occur when immovable property is divided.
- Property Does not Always have to be Moveable: Properties in Exchange might be either moveable or immovable. It is possible to swap an immovable property against a moveable property and vice versa.
- “Barter” is a Part of Exchange: “Barter” refers to the exchange of one piece of real estate for another, as well as the transfer of one piece of moveable property for another piece of moveable property.
Unauthorization of Oral Exchange
- In 1929, a modification was made to Section 49 of the Registration Act, therefore introducing and clarifying the requirement for registration under the Transfer of Property Act.
- This shows that an oral agreement alone cannot constitute a legitimate deed of exchange, and as a result, an unregistered exchange is not going to be acceptable as proof.
- If they are not registered, they have no bearing on any such immovable property and cannot be used as evidence of any transaction impacting any immovable property included therein.
- Any deal involving moveable goods valued at Rs. 100 or more has to be conducted using a registered instrument.
exchange under transfer of property act: Rights and Liabilities of Parties
In an exchange, each party has equal rights over the other.
- When one individual transfers ownership to another, he or she is regarded as the seller and is entitled to all the rights that come with selling property.
- The person who accepts the property is regarded as the buyer, and he is endowed with all the rights that come with that title.
- After taking into account the position a person holds, rights are acquired.
- If someone is on the receiving end, they can make a claim for damages if the property is not in a fit state and have the rights of a buyer. After being transferred, he is entitled to hold all rights over that property.
exchange under transfer of property act case laws
- In the case of Jattu Ram v Hakama Singh, if there was a fault in the title of property gained by one party for exchange as well as the party was stripped of some part of the land according to the Deed of Exchange because of incorrect entries made by patwari. The Supreme Court ruled that entries made by patwaris in official records do not confer ownership, to the degree that the other party may be required to restore land (property).
- In the case of Srihari Jena v Khetramohun Jaina, an exchange between the parties that compromises criminal proceedings. They agreed that until the proceedings were compromised, the deed of exchange was unable to be removed from the Registrar’s Office. According to the Indian Contract Act of 1872’s section 23, the court determined that the trade was invalid.
Social interaction, communication, and exchange are essential to society. Property, whether movable or immovable, is transferred from one person to another for a variety of reasons, under a variety of circumstances. the idea of exchange and how it affects the way property is transferred between parties. Through the use of the barter system, the idea of exchange has persisted in society throughout history, albeit with some odd modifications to its features.
As a result, the exchange functions as a sort of transfer of ownership in which one party receives something in exchange for another, and in the event that the exchange is unsuccessful or that there is a disagreement over the property’s title or the subject matter of the exchange, each party is left with a full range of rights and obligations.
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