The Supreme Court has given an important decision in favor of an auction buyer. This order of the court regarding the transfer of ownership of the property is a big blow to property dealers and middlemen.
The country’s highest court, the Supreme Court, has given a major decision in a property case. The Supreme Court said that the ownership of immovable property is not transferred until the sale deed is registered. The court clarified that taking possession of the property does not transfer the ownership of the property. The Supreme Court bench headed by Justice BV Nagarathna said in its decision last month that as per the provision of section 54 of the Transfer of Property Act of 1882, property can be transferred only through registered documents.
Shock for dealers and middlemen
There is a provision in this case that the sale of immovable property worth Rs 100 or more will be considered valid only if it is done through a registered document. 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. But, the transfer of ownership of immovable property is valid only when the sale deed is registered.
The Supreme Court made these comments in favor 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, a Constitution Bench headed by the CJI had given a major decision on the acquisition of private property. The court had said that the state government cannot acquire all private properties, it can acquire only some properties. With this decision, the Supreme Court overturned its historic decision of 1978.
