New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    According to the provisions for the sale of immovable property, how should the transfer be made for tangible immovable property valued at one hundred rupees and upwards?

    A By oral agreement between the seller and buyer Correct Answer Incorrect Answer
    B By a registered instrument only Correct Answer Incorrect Answer
    C By delivery of the property without any documentation Correct Answer Incorrect Answer
    D By a written unregistered agreement Correct Answer Incorrect Answer
    E By a verbal contract followed by a handshake Correct Answer Incorrect Answer

    Solution

    Transfer of Property Act: Section 54. “Sale” defined—“Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Sale how made—Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.

    Practice Next