The Transfer of Property Act, 1882, governs the transfer of property in India and lays down the legal framework for such transactions. It defines what can and cannot be transferred, ensuring that only legally valid and fair transfers take place. While property of any kind can generally be transferred, there are certain exceptions where the law prohibits transfer due to the nature of the property, public interest, or the rights of specific individuals. Section 6 of the Act lists these exceptions and explains the circumstances under which a property cannot be legally transferred.

What May Be Transferred (Section 6)

Section 6 of the Transfer of Property Act states that any kind of property may be transferred unless restricted by:

The Transfer of Property Act itself, or

Any other law currently in force.

This means that transferability is the general rule, while non-transferability is an exception. The law prohibits certain transfers to protect public welfare, maintain legal stability, and prevent unfair transactions.

Properties That Cannot Be Transferred

Certain types of property are considered non-transferable under Section 6. These include:

1. Future Expectations and Possibilities

5. A person’s mere chance of inheriting property in the future (spec successionis).
5. The possibility of receiving a legacy after a relative’s death.
5. Any other uncertain future property rights.

2. Right of Re-Entry: A right to reclaim property due to breach of a condition cannot be transferred, except to the owner of the affected property.
3. Easements: An easement (such as a right of way) cannot be transferred separately from the property to which it is attached.
4. Personal Rights and Interests: Property that is restricted to personal use cannot be transferred, such as, a right to receive future maintenance.
5. Right to Sue: A mere right to file a lawsuit cannot be transferred.
6. Public Offices and Salaries

5. A public office cannot be transferred.
5. The salary of a public official, whether earned or unearned, cannot be transferred.

7. Pensions and Stipends

5. Military, naval, air-force, and civil pensions granted by the government cannot be transferred.
5. Political pensions are also non-transferable.

8. Illegal or Unlawful Transfers

5. A transfer that goes against the nature of the property.
5. A transfer with an unlawful object or consideration, as per Section 23 of the Indian Contract Act, 1872.
5. A transfer made to a person legally disqualified from receiving it.

9. Non-Transferable Occupancy Rights: The rights of certain tenants, estate farmers, or lessees under the control of a Court of Wards cannot be transferred.
   
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Non-Transferable Properties Under Other Laws

Apart from the restrictions mentioned in Section 6 of the Transfer of Property Act, certain other laws also prohibit the transfer of specific properties. These include:

5. Hindu Law: Some properties, such as coparcenary property (joint family property) and property dedicated to a deity (God), cannot be transferred.
5. Muslim Law: Waqf property (property dedicated for religious or charitable purposes) and the office of a mutawalli (custodian of Waqf property) cannot be transferred.
5. Code of Civil Procedure, 1908 (Section 60): Certain properties are exempt from attachment and transfer, such as cooking vessels, tools used by artisans, and other essential items required for livelihood.
5. Local Laws and Customs: Some agricultural tenancies are non-transferable due to specific local enactments and customs that protect tenants’ rights.

Persons Competent to Transfer (Section 7)

Section 7 of the Transfer of Property Act lays down the conditions for a valid transfer and specifies who is legally competent to transfer property.

Essentials of a Valid Transfer

For a transfer of property to be legally valid, the following conditions must be fulfilled:

1. The property must be transferable under Section 6 of the Transfer of Property Act.
2. The transferor (the person transferring the property) must be legally competent to do so.
3. The transferor must have the right to transfer the property.
4. The transferee (the person receiving the property) must also be legally competent.
5. All legal formalities required by law must be completed.

Who Can Transfer Property?

According to Section 7, a person is competent to transfer property if they meet the following conditions:

5. They must be competent to contract – As per Section 11 of the Indian Contract Act, 1872, a person is competent to contract if they:
   1. Have attained the age of majority (18 years or 21 years in certain cases).
   2. Are of sound mind at the time of making the contract.
   3. Are not disqualified by any law from entering into a contract.
5. They must have the right to transfer the property, meaning they should either:
   1. Own the property, or
   2. Be authorized to transfer property that is not their own.

Extent and Conditions of Transfer

A person who is legally competent to transfer property may do so:

5. Wholly or partially – meaning they can transfer either the entire property or a portion of it.
5. Absolutely or conditionally – meaning they can transfer ownership completely or with specific conditions attached.

However, all transfers must comply with the legal restrictions and procedures laid down by the applicable laws.

For a property transfer to be legally valid, both the transferor and transferee must be legally competent, and the property must be one that can be transferred under the law. Certain properties remain non-transferable due to religious, statutory, or customary restrictions. Understanding these rules ensures that property transactions are legally sound and free from future disputes.