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Rahul Dev Narne   27 August 2023

Responsibility of section 122 of transfer of property act

THE PERSON "A" DOESNT HAVE ANY DOCUMENTS OR CLAIM TO PROVE HOS TITTLE TO PROPERTY. YET HE WANTS TO GIFT IT TO "B", A FAMILY MEMBER OF "A". B IS FULLY AWARE OF ALL FACTS AND IS COMPLICIT IN THIS GIFT IN FAMILY DEED. ITS A NON-EXISTENT PROPERTY WITH A WRONG SURVEY NO.

If A wants to gift this immovable property to B. on whom does the responsibility fall to ensure that the immovable property is existing in compliance with section 122 of Transfer of property Act. 



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 2 Replies

T. Kalaiselvan, Advocate (Advocate)     28 August 2023

Without document like Sale deed to prove donor title to the Property, a gift deed cannot be executed nor the registrar will permit to registration of gift deed.

If there is no property nor the donor is not having any title or interest in the property, he cannot execute a gift deed.

LCI Thought Leader Adv Harsh Malhotra (Adv)     23 September 2023

In the scenario where Person "A" lacks any documents or evidence to establish their ownership of a property, yet intends to gift it to family member "B," who is well-informed about all relevant details and is actively involved in the gift process as per the family's deed, and given that the property in question is non-existent and has an incorrect survey number, if "A" wishes to gift this immovable property to "B," the responsibility to ensure the property's existence and compliance with Section 122 of the Transfer of Property Act falls upon both parties, "A" and "B." It is incumbent on both "A" and "B" to verify the property's validity and adherence to legal requirements before proceeding with the gift transaction.

It is a settled legal principle that a person transferring a property cannot pass a better title to the person getting the property than what he has. Thus, a person not having a title to the property cannot pass on the title to another person even through a registered document.

A will be liable for misrepresentation or fraudulent intent, especially if they knowingly attempted to gift a property that does not exist or has an incorrect survey number. Their lack of proper title and awareness of the property's non-existence could be seen as an attempt to deceive.

Both individuals could potentially face legal consequences if any affected party, such as a third-party buyer or a government agency, challenges the legitimacy of the transaction or the property's existence.
 


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