Sale of Property
Sale of Property:
Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised. The transfer by way of sale of tangible immovable property of the value of rupee one hundred and above can be made by a registered instrument. The transfer by way of sale of tangible immovable property of the value of less than one hundred rupees may be made either by a registered instrument or by delivery of the property.
Sale of immovable property has been defined as a transfer of ownership in exchange for a price paid or promised or part paid and part promised.
According to Transfer of Property Act, immovable property does not include standing timber, growing crops or grass.
In General Clauses Act, immovable property has been defined as including land benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth. The term "attached to the earth" has been defined in Transfer of Property Act as under:
- rooted in the earth, as in the case of trees and shrubs,
- imbedded in the earth, as in the case of walls or buildings, or
- attached to what is so imbedded for the permanent beneficial enjoyment of that to which it is attached.
The benefits to arise out of land is an interest in land e.g. life interest in the income of immovable property, right of way, ferry, fishery, lease of land, right to enter upon land and to carry away fish from a lake, right to enter upon land and to remove trees, right to collect dues at a fair held on the land, right to rear land. But right to recover maintenance charged on land, royalty are not benefits to arise out of land.
Contract of sale
A contract for the sale of immovable property is a contract laying down that the ' Sale ' of such property shall take place on the terms settled between the parties in the said contract. Such contract for sale does not create any interest in or charge on such immovable property. The contract for sale does not result in any transfer of ownership. However a sort of obligation is created in respect of the ownership of the property.