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The Supreme Court ruled that ownership isn’t transferred without sale deed registration, even if possession is handed over and payment is completed
This decision of the Supreme Court is a big blow to property dealers and middlemen because these people buy property through power of attorney and will. (Shutterstock)
In a recent property case decision, the Supreme Court ruled that ownership of immovable property is transferred only upon the registration of the sale deed. The court emphasised that merely taking possession of a property does not confer ownership.
A bench headed by Justice BV Nagarathna of the Supreme Court said in its decision last month that as per the provision of Section 54 of the Transfer of Property Act of 1882, property transfer can be done only through registered documents.
Setback for dealers and middlemen
In this case, the provision is that the sale of immovable property worth Rs 100 or more will be considered valid only if it is done through registered documents. The court said that where registration of the sale deed is required, the ownership right is not transferred until the deed is registered, even if possession has been handed over and payment has also been made. However, the transfer of ownership of immovable property is valid only when the sale deed is registered.
The Supreme Court made these comments in favour of an auction buyer. This decision of the Supreme Court is a big blow to property dealers and middlemen because these people buy property through power of attorney and will; now, this will not be possible.
Earlier in November last year, the Constitution Bench headed by the CJI had given a big decision on the acquisition of private property. The court had said that the state government cannot acquire all private property; it can acquire only some properties. With this decision, the Supreme Court overturned its historic decision of 1978.
